Cryptocurrency And The Long Tail: The Creation Of Abundance

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There is no doubt that cryptocurrency is going to change many industries. We already see how it is affecting music and video. By creating new distribution systems, those who can profit are greatly expanded. At the same time, we see new ownership models with the introduction of NFTs.

Basically, the centralization of industries is a barrier for most. Now, we are seeing things open up which is going to bring enormous benefits to millions.

It is a process we went through with the Internet. A couple of decades ago, everyone was going after the digital gold that was being offered by The Information Superhighway. While that did not work out as planned, it did open the door for many to enter. There are millions of people who "earn a living" online.

Fortunately, due to cryptocurrency, that number is going to grow significantly.

We are entering the Age of Abundance and it is clear to see where this is coming from.

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The Long Tail

The Long Tail was a model developed a couple decades ago to describe the difference in distribution and markets due to digital technology. This is something that is becoming even more paramount due to cryptocurrency.

Probably the best example of The Long Tail applies to Amazon. Whereas the traditional bookstore could stock roughly 50,000 titles, Amazon, being online, could carry millions. Looking at the above chart shows how the physical locations had to focus upon the head.

The reason for this is that shelf space is limited. Thus, it came at a premium. Each title carried required sufficient turnover to warrant a spot on the shelf. Hence, the store made money by carrying the most popular books.

Amazon's cost was limited. Since it was simply adding another page to the website, the digital space was near-free. In this instance, Amazon could offer millions of titles without an issue.

What makes the long end so valuable is that, while each title is not going to bring in a large amount of sales, the number is enormous. The physical bookstores were looking for titles that could sell 1 million copies. Amazon, on the other hand, we content have 100,000 books that sold 10 copies. Both lead to 1 million. Of course, Amazon carried the most popular titles also. Here is how it was able to leverage all ends of the chart.

For Amazon, even the titles that only sold a couple books per year were worthwhile. Again, the carrying cost was basically nothing.

Internet Money

Cryptocurrency is literally Internet money. It existed in no other realm than the digital world. while there is a lot of talk about making a digital version of our fiat currencies, cryptocurrency never had a physical counterpart. This makes it part of the Internet protocols that we are operating under.

People all over the world are starting to realize the potential facing humanity. We are embarking upon a new paradigm, one that will be further advanced over the next 5 years. However, many understand the possibilities regarding the Internet and making money.

That said, when we look at the chart of the Long Tail, we see something very interesting. The model cited "Niche Products". Amazon was able to take advantage of this to the tune of more than $1 trillion in market cap.

However, what if we swap the words? Could this radically change the situation?

We are going to replace the word "products" with "communities". Now we have the long tail discussing the idea of "Niche Communities". This takes on new meaning considering these communities can be tokenized.

Essentially, they become their own economies. What does this do the aggregate?

Today, we have a few major industries that dominate. However, there are millions that are overlooked due to their overall profit potential. This means that access to things such as funding is limited.

Just like Amazon was able to focus upon this end of the tail, cryptocurrency makes it possible for millions of communities to operate as their own economies. While none are going to rival the healthcare industry is size, they will provide valuable resources for billions of people.

Instead of focusing upon products sold, although that can be a part of it, the ability to monetize whatever is important to that community is paramount. Here we can see the hundreds of thousands of dollars in activity adding up in the collective.

Hive Is Ushering In The Age Of Abundance

It seems everyone wants to focus upon being at the "Head" of the chart. People in cryptocurrency consistently look at the Top 10 (or 20) tokens believing that is where the money is. Certainly, we cannot discount the potential of the likes of Bitcoin and Ethereum. They are already massive. However, they are not the only ones on the distribution curve.

Hive itself would likely be listed in the "Sorta/Kinda Popular" category. That said, it is primed to help usher in the Age of Abundance. Through its second layers, there are hundreds of different projects starting to take shape. Many of them are presently tokenized, with more to come. It is likely that many of these never amount to much but there is the possibility some will have value.

Is there another Bitcoin in there? Not likely. That, however, is not the point. When people understand that they can make money by people "large fish" in these smaller communities, the realization of the power being wielded becomes clear.

It is not necessary to have a token worth $1,000 each. Instead, it is highly profitable to have one that is worth 50 cent if you have 70,000 of them. As niche communities take hold, the network effect kicks off. Again, we are not looking at the next Facebook or Twitter. That said, even a few hundred dedicated people can have great value.

Changes in technology create paradigm shifts. Most miss what is taking place when they happen because it is easy to remain married to what we know. When we understand what made Amazon so powerful, we can then begin to understand cryptocurrency. The future of money is not going to resemble "physical retail". Instead, like Amazon, it is going to usher in something completely new.

We simply can focus upon the far end of the Long Tail model and see enormous wealth generated.

The next Bitcoin or Ethereum is probably not there. However, in totality, we will see value that outpaces either of those two at the Head of the chart.

What are your thoughts? Do you see how the digital distribution curve is now applicable to money.


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Bang, I did it again... I just rehived your post!
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I'm totally agree with you. We're in the age of abundance but we need to take care about other aspects of the society too. An area in that we need to be very carefuly is the area of the philosophy specificly in the way that we need to take care about our freedom because now that the bless of the cryptocurrencys is here, the danger of living in a totalitary world is more and more close too. So we need to focus on keep on the economic growness and start to create a society more focus on the individual freedom. I would like that you talk about it.

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So we need to focus on keep on the economic growness and start to create a society more focus on the individual freedom.

They are one. People try to separate but economic progress always results in more freedom. When have you seem major progress for any part of society from those states that are overly tyrannical? What was the last major innovation to come out of North Korea?

Also, while everyone focuses upon the downside to technology, few realize what is being developed before their eyes. Blockchain is a freedom provider. So is cryptocurrency. Mesh networks. Open source software.

The list goes on and one.

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It is interesting how many people who spend their time on the blockchain are also interested in things like food sovereignty, and clean water.

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Yes. Niche communities will likely become very profitable so to speak as crypto and web3 grow and become part of mainstream life. A shift from product focus to community focus isn't the worse thing for society either ;-)

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A shift from product focus to community focus..

They will be interwoven.

Also, consider the high accuracy of marketing. Product (or service) producers will know exactly where the buyers are. The Prosumer is being taken to another level when people assemble around whatever the basis of the community is.

This is a massive increase in efficiency.

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This takes on new meaning considering these communities can be tokenized.
Essentially, they become their own economies.

Kind of like Leofinance is... I have not imagined this thing to get "that thick" in such a short time.

But when we talk crypto we talk exponential growth and that's when everything makes sense. What also makes sense is "tokenizing the internet".

As industries are getting automated some will have to look for income sources out of traditional labor categories.

I was working in constructions six years ago and now I'm a content creator. Who would have thought of that?

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I was working in constructions six years ago and now I'm a content creator. Who would have thought of that?

How many times will we see this repeated over the next 5-10 years?

Although I will add one thing to what you wrote: you are a profitable content creator.

Anyone can post on facebook or youtube but where is the money. On Hive it is here.

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It's hard to find real future value when people only see what's at the top and what's already successful.

The masses are pushed around, this time towards what's the next hype, news from the media and doing what everyone is doing as they don't want to be left behind in the next pump or big run.

Hive in its nature can easily do a 10X with ease from where it is now, but it'll take a while or a long time before bitcoin or any top ten token out there can have that growth.

Nevertheless, being under the radar give space to build real value and build things forward in every possible way.

We are still scratching the surface now, more building is still needed especially during times like this.

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There is no doubt that building is the key to long term success. Many of the top ranked tokens are doing this so they are working on ensuring their future. However, you are right, the ability to do what we are outside the eyes of the majority is of benefit.

We are still building infrastructure and a foundation. This is not an overnight process. Most think mooning is what it is about but development is crucial.

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That is true, there are many people who make a living thanks to the internet and especially with Cryptocurrencies and how do you say the era of abundance must be yet to come thanks to technology.

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I liked that phrase "The beginning of the age of abundance" and more when it is related to hive, I believe that evolution is a natural process. technology is necessary and continues to advance, with digital businesses I see a great expansion that overcomes geographical barriers, consequently greater economic benefits, having a cryptocurrency I see as the appropriate tool for this environment that comes to streamline processes, I am very excited and I want to continue growing in this ecosystem, thanks for such a valuable post

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To amazon, one book that could make 10 sales was worthwhile.

Its something to remember when diversifying here on the blockchain. So what if RisingStar only pays a couple of pennies (although some players really are raking it in.

A lot of pennies throughout your day adds up.

The age of abundance is tokenizing your walks, your gaming, your everything.

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That is why it is important to keep staking whatever community you are involved with as things will only get bigger over time. People tend to look at value and don't realise that the value is still going to arrive when more people climb on board. The future is already here and we need to stay busy and grow.

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I agree and having digital assets for sale isn't that bad because the upkeep on it is almost nothing compared to the advantages it has. I don't really think physical stores will really survive but I still see the demand for things like a grocery stores for fresh goods and restaurants for food though.

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I love the thought of all of the natural spaces we'll have if fewer people have to work jobs, unnecessary jobs are eliminated because people don't have to work jobs to survive, and retail shopping is basically dead.

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I think people are led to believe that things only in the top 20 make money, the way that only the top 30 or so stocks make money in the stock market. It’s obviously incorrect but difficult for some to imagine things to be otherwise. Thankfully the crypto world is advancing quite a bit and the hive ecosystem is as well. There’s a lot of development on hive that I’m not even aware of and that’s one of the cool things. It’s growing in it’s user base as well as its developer base and important for the future! I think the niche communities here are going to springboard a lot more in the coming years that’s for sure. It’s going to be important though not to forget the base layer and now is the time to bolster our hive holdings to be well positioned for that growth.

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