Our present system is full of extraction.
Whether we look at this within certain industries, where many companies exist simply to extract value, usually in return for doing very little, or we take this on a geographic basis where companies enter an area and extract as much as they can, it ends up with the same result.
Tremendous wealth is gained by those who are able to play in the system. Through different companies, these people are able to exert enormous influence over the legal and political landscape. Even if there is a democracy, it usually moves quickly from a political one to economic. Votes are for sale and those with the means are the winners.
Of course, most do not take this lying down. They "fight" the system by complaining, voting for those who promise to make it even or by trying to get a bigger share of the pie. What gets overlooked is the fact that, if a large percentage of the extraction was eliminated, the majority would be better off.
Income Versus Net Worth
Unfortunately, there are some simple concepts that get overlooked.
We all know that, at least in the West, the basics of finance are not taught. Most have no idea about money, budgets, simple investment principles, or wealth building.
This is evidenced by the fact the masses talk about income. This is the measure of value that we concentrate our efforts.
It is the polar opposite of what people should be placing their attention. Nobody cares what Warren Buffett's salary is, including Buffett himself. When we mention people like that, it is always net worth.
Being a billionaire does not mean that one makes $1 billion in a year, although that is true for some. Instead, we are talking about the value of their assets.
Here is where the extraction enters.
The system "rewards" those who are contributors with nice incomes. Those who make themselves valuable by getting the schooling that provides the abilities to perform much needed work that carries high economic value get the nice salary. Of course, we must bear in mind, many of these people are not any better trained in finance than the rest.
Instead of going broke $20 at a time, they do it in $100 (or $1,000) increments.
What this means is the extractors end up profiting on a larger scale. This is most evident in the medical industry where doctors and nurses generate major value yet, in spite of their high incomes, are just small pieces in the machine. It is not uncommon to see administrators making more money.
Hence, we have a mental breakdown that allows this warped system to thrive. The fact that people are not focused upon asset building means they opting for the short-term solution. They also miss out on one of the most powerful forces we have, compounding.
Web 3.0: A New Ownership Model
We discussed how Web 3.0 carries great potential since it addresses this situation.
With a new ownership model, there is the potential that we might create industries where the extraction is minimized. Naturally, this can only take place if the mindset of people changes.
Being in the early days, the returns are not great. While there are not an overwhelming number of major corporations bilked the system (yet), we see it at the individual level. Most are simply trying to pull out all they can.
There is a great deal of uncertain pertaining to income capital. What are people going to do if their jobs go away?
This is a question on everyone's mind. The problem is that most are looking to the same solutions, ones that do not work out well in the long run.
Web 3.0 offers the prospect of asset accumulation. Here is where people can place themselves in a different position. One of the benefits of something like Bitcoin is that it provided many people with the opportunity at life changing money. It is true that a 10 year commitment was required. However, this could alter the future radically.
For example, the price of BTC at the start of 2013 was $13.30. If one put in a bit more than $250, he or she would have over $1.2 million today.
Of course, this is easy to do in hindsight. There were a lot of initiatives where a $250 investment would equal zero. This is why it is important to understand what we are looking at. We also have to apply strategies knowing there will be losses periodically.
Extractors Do Not Care
Stakeholders is a term used to describe those who have an interest in an enterprise, company or system. It is a word thrown out quite frequently these days.
Unfortunately, stakeholders can be different breeds. Simply because someone has stake does not mean their interests are aligned. The extractors are prime examples.
The care as long as the gravy train is going. What this means is that, for the time period where extraction is possible, they are concerned stakeholders. However, when that ends, they move on. We see this geographically as companies enter an area, take what they can, and then move on.
In the digital world, it is accelerated.
We see less upfront costs and lower barriers to movement. This is true for companies as well as individuals. How often have we seen people supposedly in Web 3.0 who jump all over the place. They are simply looking to extract all they can wherever they are focused. Building is not on their agenda. Instead, they chase every airdrop, new project, and meme coin in an effort to grab some value.
Of course, there is nothing wrong with trading, getting some free assets in an airdrop, or making a gain. However, when this is the only focus, one is nothing more than an extractor. These people are no different from the ones they complain about in the present system.
The success of Web 3.0 is not going to come from extraction. We know what is taking place with the present social media platforms. The same is true for the chatbots. These companies are looking to generate billions, pulling out all they can from the data others created (and freely gave to them).
Web 3.0 could offer something different. We saw this in the open source community where certain software solutions, such as Linux, have dominated. The efforts of thousands over a long period of time have created a library of programs that is unrivaled by the closed system.
What happens if we take this and spread it across many industries? That is what Web 3.0 can offer. The idea of extracting without giving anything back is what we were conditioned to understand. After all, that is what success is to a large degree.
Is this a societal shift? Potentially.
Here is a major difference: when one has assets, they start to care more about what is taking place. In other words, if one has stake in something that is dependent upon the success, long-term, in whatever it is, he or she is going to take measures to expand that.
This is the opposite of the people who do not care. Extractors really have no stake in something. They simply are there to bilk and move on.
Web 3.0 has the opportunity to stop the extraction. To me, this starts with individuals starting to accumulate assets and doing what they can to help enhance the value of those assets.
Posted Using InLeo Alpha
I agree. While a lot of crypto, especially NFT games, have rampant extraction, if Web3 is applied correctly people will be more inclined to build. I see it in the long running NFT games that I am a part of. The whales and long time players are continuously trying to make the game sustainable, and try to fight against extractors and bots.
This is the first go around for many things, including the NFT sphere. We are going to see that take off at some point. There are a lot of valid use cases.
But, alas, early on, it is all speculation and moonpies.
I think we're in a bit of a chicken-or-the-egg situation right now. There is plenty of value within web 3.0 ecosystems already, but too many people only see the value as BTC or fiat. Not enough people see the investable value that we have, even just here on Hive. If we can get HBD or Hive incorporated into (more?) payment platforms, we could probably see that start to turn around. I really do believe in the title of your post from a couple of days ago (Every Account Can Be A Media Company), and as Hive grows, it could very well be the new Medium, Forbes, YouTube, etc. When I have a few minutes to sit and think about that, I get really excited imagining how much different the media landscape WILL be in a few years, because that WILL change the way people view their investments/extraction when it comes to their media creation. Imagine creators on 3Speak developing the kind of notoriety YouTube now has, but it doesn't rely on ads or selling a "premium" service to make money and continue operating!
Accumulating and staking, a good start. Enhancing the value of specific digital asset, that's more challenging.