Why is blockchain/cryptocurrency the most profitabile new emerging industry?

[Qcrypto]

You so often hear people comparing blockchain to internet back in the late 90' and early 2000's.

Why was internet so dominant at that time and why did the internet technology created the most profitable companies on the planet(Alphabet, facebook, amazon, microsoft...)?
I will talk about those factors in a bit (the factors overlap with blockchain/cryptocurrency) but what I wanted to stress out is the fact that investors often discuss which industry to choose.


If you're looking to invest in something or if you're looking to start a business which yields most profits, first you must find out if you're in the right industry.

In today's world there are a few cutting edge new emerging industries that are talked about that could make the big impact.
BIG impact yes, but can they make you big profits. Of course every industry can, but which one can make you the most profits, like internet did back in the day.
Is it electric cars, solar energy, Robotics, 3d printing... etc.



It's blockchain/cryptocurrency and here is why...


There are a few factors which need to be accounted for to calculate whether the industry or business will be the top emerging industry of that time.

Internet had this:
1) Income not dependent on time
Is your income/earnings from Product/Service dependent on time? Can you earn money when you sleep or without working yourself?

2) Win-Win Situation
Is your Product/Service a win situation for you, your customers and your investors/supporters?

3) Global
Is your Product/Serivice global/internet based so that you can influence the whole world with it?

4) Automatization
Is it possible to automatize the selling/using/support of Product/Service without a lot of staff engagement?

5) 24/7 – 365
Is it possible to sell/use your Product/Service every single day/hour, no matter which holiday or festival it is?

6) Science support
Do you need a lot of technical expertise and science support in order to offer your Product/Service to the market? (for business starters without a lot of money)

7) Outside influence
Does government (or law) have too much influence on your Product/Service with little control by your side?


These parameters make the base of a good business. Notice how both internet and blockchain/cryptocurrency satisfy those same parameters.


And here is the kicker. These 2 parameters create a legendary business.

8 ) Network effects
Can your Product/Service offer a referral/recommendation program for users to make a better awareness themselves without investing in marketing later?

9 ) Dopamin
Does the business have something which drives people to be occupied with it?


If you compare all other emerging industries you will notice that they lack certain parameters.

-Electric cars: missing number 9 and somewhat number 7. It's a physical product, no matter how hard or fast you work, how much you automate it it will still take a lot more time to produce.
-Solar Energy: same as previous. It's a physical product, you can only do so much with it.
-Robotics: same as previous two.
-3D printer: same as previous three.

All of those are missing a parameter or two.


But BLOKCHAIN/CRYPTOCURRENCY actually satisfies all of those parameters and has an additional parameter that makes it truly the industry you want to be in.

It's connected to payments and has a speculative nature. People love gambling and money.

Not only does the industry satisfies all the successful business parameters it also satisfies human need/greed as well.

[mk4]

You're overly glorifying blockchain and cryptocurrencies here.

1. Blockchain is just a database.

2. Cryptocurrencies are mostly scams and or unnecessary/useless projects; whereas you can do right now on the internet what most cryptocurrency projects advertise they can do, and you don't even need a useless token!

3. Besides bitcoin, most cryptocurrencies are going to fail, and are very BAD investments that you might as well gamble in penny stocks.

4. As for gambling, people can gamble or speculate moonshot bets in assets without cryptocurrencies. Small cap stocks exist.

If anything in a monetization perspective, I only see most cryptocurrencies a good opportunity to make money by short-term trading. Beyond that, not much.

[bitmover]

If you're looking to invest in something or if you're looking to start a business which yields most profits, first you must find out if you're in the right industry.

In today's world there are a few cutting edge new emerging industries that are talked about that could make the big impact.
BIG impact yes, but can they make you big profits. Of course every industry can, but which one can make you the most profits, like internet did back in the day.
Is it electric cars, solar energy, Robotics, 3d printing... etc.

Can you name at least one blockchain related company which is having big profits?

All those ICO out there and projects may be making profits from their tokens. But that's only speculation: Those companies are not profitable. Actually, those companies aren't make any money , most of the time. Most of them are just a whitepaper with a lot of promises, but zero real life products.

[Baofeng]

I think the OP has exaggerate quite few things here. Yes, crypto is a billion dollar market obviously, but it doesn't mean that people can make huge money, it's really up to their risk aversion. Don't forget that during the height of bitcoin, there are a lot of irrational buyers, but where are those people now? I bet majority of them have exited as early as 2018 when they got burned. This is a speculative asset, so not a win-win for everyone.

[Yamifoud]

I was pretty amazed at how OP gives glorifying words for crypto.
But if we are considering crypto as a huge moneymaker, maybe it was last 2017 and not these days. Coz I know that everyone suffers such difficulties and many of them are already flown away from here. Yes, we are at that speculative matter in the past years that people will fully accept crypto and adopt the system but something it changed when many countries are not giving their support which of course, will certainly affect the mindest of the people and put at hold.

[Darker45]

To be fair, blockchain is indeed an emerging industry, or more accurately the technology of emerging advanced industries. It is going to become even bigger in the future, for sure. But it should not be equated with cryptocurrency. It does not automatically follow that since a specific company or an industry is using blockchain for keeping data or storing its important records, it is already involved in a cryptocurrency. An industry using blockchain technology does not have to get into minting tokens.

The question is how to profit from it. It must not be easy. I mean, you cannot just generalize and jump right into investing in whatever company using blockchain. Much worse, it is definitely a bad idea investing into new cryptocurrencies. If you want to profit from crypto and seriously make money, you have to learn how to play the trading game, which is as hard.

[davis196]

Let me add a few things to your list.Online businesses are more profitable because:
-You don't need that much employees,therefore you have lower labor costs.
-You don't need that much office space,or warehouse space(unless you are Amazon),which means lower costs for office,real estate,etc.
-As you mentioned,the online business can run 24/7 and it can be automated.
-Many online companies are located in offshore jurisdictions,which means less taxes.

But despite all those factors,many online businesses aren't profitable.Most of the social media platforms are still overpriced,in terms of stock value.Their profits aren't playing a big role in determining their stock value,which is kinda weird.

There isn't any trusted and accurate data about the amount of real profits that cryptocurrency companies are making,but I don't think that they are way bigger,compared with the profits made by non-cryptocurrency companies.

[Wexnident]

Uhm. In essence, Blockchain is purely just a record of transactions that can't be altered. That's that. What kind of bloody idea did you have to even start comparing it against robotics, solar panels, and the like? You didn't even bother making a comparison that can be found ON the internet. All stated examples are pretty much physical items. How can you even make a good comparison with that kind of notion? Just the fact that there's an output already removes the idea of these products not being supported by a company or group.

Even if you take into account that it is concerned with payments/money, that is based on the fact that the project itself appeals to the public. And with the said projects actually fighting against BTC? Why even bother? And do remember that BTC became famous because it had no backing and is fully supported only by the community. This idea of yours stems from the fact that no central organization should be supporting the project, so then why would anyone start making it if there is no profit no? Just because BTC is famous doesn't mean that everyone would do the exact same thing as it is. They'd have to prioritize profiting off of any ideas they could get imho.

[minairia3]

Emerging market means totally a boom sector of business. I can say I agree. But of course these have exception. Like others said, there are blockchain products or projects that promotes scam one. This is the negative side of blockchain but what you detailed here is right.

For some people blockchain is a good industry but Im not saying the most profitable cause there are more higher than this. I am specifically saying the food industry and banking system. For now these are the most profitable. There is money on trading, such as stocks but cryptocurrecy is no difference with them aside from being unregulated.

[mk4]

Can you name at least one blockchain related company which is having big profits?

All those ICO out there and projects may be making profits from their tokens. But that's only speculation: Those companies are not profitable. Actually, those companies aren't make any money , most of the time. Most of them are just a whitepaper with a lot of promises, but zero real life products.

Most, and when I say most I mean almost 100%, surely aren't making profit and most of us here know that. I'm convinced that a good percentage of these "blockchain companies" aren't even aiming at making profit off business operations, I'm convinced that most just want to pump their coins/tokens to dump on their bagholders.

[BrewMaster]

because in imaginary land anything is possible! you can imagine that ICOs are not scams and they are super profitable. you can imagine that shitcoins and copycats are excellent innovative technologies and a lot more.
that is a messed up trend that has been going on among newcomers these days. they come in and make a couple of bets (call it trading) and get lucky and win those bets (make profit) then they start  thinking cryptocurrency world is this magical imaginary land where you become rich like OP.
interesting enough almost all the things OP mentions are hyped up topics ICOs used to scam people over the past couple of years!

[ampere]

You're overly glorifying blockchain and cryptocurrencies here.

1. Blockchain is just a database.

2. Cryptocurrencies are mostly scams and or unnecessary/useless projects; whereas you can do right now on the internet what most cryptocurrency projects advertise they can do, and you don't even need a useless token!

3. Besides bitcoin, most cryptocurrencies are going to fail, and are very BAD investments that you might as well gamble in penny stocks.

4. As for gambling, people can gamble or speculate moonshot bets in assets without cryptocurrencies. Small cap stocks exist.

If anything in a monetization perspective, I only see most cryptocurrencies a good opportunity to make money by short-term trading. Beyond that, not much.

You have done justice to this thread thoroughly and brilliantly.
From 2.
Alot of people see crypto currency as a profitable venture mainly because of the numerous scam projects that performs pump and dumps on the crypto space.

From 3.
I want to say that even bitcoin cannot left out from tokens with thr tendencies to fall, just that bitcoin has a higher tendency to survive and moon over time.

[dothebeats]

Let me tell you one thing: blockchain is new and every company is riding the fame out of it for exposure without really putting up a great use case of the tech within their own company's structure.

Blockchain, after all, is just a collection of 'blocks' of information put into a chain. What's special about it is that it is immutable and not prone to modification--at least the decentralized ones. Cryptocurrencies, on the other hand, are mostly scams and that's the truth. You will see a lot of it in the Altcoin ANN section of this forum. Most of them are re-hashed versions of previous coins that failed and added some flashy tech in order to make it look like brand new. Most of the flashy gizmos aren't really beneficial in real-world usage: all you need from a cryptocurrency is its security, value and ease of use, really.

[maxreish]

Exagerating things makes it more complicated for peoole to understand your point. But one thing is for sure, blockchain can not be compare with internet. And although you have a great sense showing some points when it comes to putting up business considering these things, but businesses are using blockchain together with internet for data securing and conveniency that makes it the emerging industry you are saying.
 
 The connection between the two will actually give a profitable way of acquiring the target in our industry. Whether business or investments, their will be a good cause which was misunderstood by many.