Blockchain-Based Value ExtractionsteemCreated with Sketch.

in crypto •  3 months ago 

Not So Quick!

The idea of WEB3 and its inexhaustible creativity regarding tokenization and monetization methods is attractive, to say the least, at first glance. However, the process, or better yet, what is required to extract value, is a lot more complicated than it may initially appear. Yes, opportunities abound within the world of WEB3. However, one has to “qualify,” and this is something that is not often spoken of.

The removal of barriers to entry provides effortless access. However, extraction requires effort or significant capital. These tools are utilized to extract value from WEB3 and DeFi income models. As a participant, you can use either or both. However, outside of these two approaches, one cannot extract value. Deploy significant capital or get stuck in… there’s no other way.

I have noted how many newcomers to WEB3 and SocialFi apply themselves for a few days and then expect to see results. Unfortunately, it’s not merely a case of effort, but an ongoing effort over months and even years. This is the bitter pill that many are unable to swallow. Eventually, it becomes easier to extract value. This is primarily due to the increasing value of working capital and your influence.

Effort Leads To Expansion

There cannot be expansion regarding your influence and reach apart from a period of consistent effort and dedication. This initial stage of establishing yourself within this new world can be a tough nut to crack. It will often feel as if you are getting nowhere. However, this is where stubborn perseverance is needed. Choose to ignore the results and keep chipping away day after day.

Once established, WEB3 can be a honey pot. It is however a journey, unless, of course, you have copious amounts of capital to deploy. Combining both methods helps to promote a moderate and more risk-averse approach. Moderation for the worker bee and risk for the “King of Capital”. Money that appears to be “easy” in the Crypto space still has requirements and is not as easy as it may seem.

It’s a similar scenario regarding financial markets in general. Extraction, in this particular case, requires skill and experience. The effort being deployed by WEB3 participants is translated into ownership, authority, and influence. It’s this unique recipe that “authorizes” value extraction. There are no shortcuts. You can’t simply create a few WEB3 accounts and then sit back expecting money to come your way.

You will be surprised how many people think this way. They don’t realize they do, but their actions prove they do. When they are expected to bring something of value to the table in the form of commitment and effort, they fold. Or, after a few short weeks of nominal effort, they fade away because they didn’t see their desires materialize immediately before them. Certain principles cannot be avoided, even in Crypto.

Final Thoughts

Some manage to get a lucky break in the Crypto space. However, you can’t build an income model waiting for a lucky break. The approaches I have drawn attention to in this article are essential. Blockchain-based value extraction will become increasingly popular, especially as AI continues to marginalize and replace conventional income solutions. Keep growing and advancing. Catch you next time.

Disclaimer

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

This article was first published on Sapphire Crypto.



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