Two Things Going In Opposite Directions

in LeoFinance2 months ago

Anyone who understands an income statement realized there are two sides to it. Income is obviously important. The money coming in is vital, whether we are dealing with an individual or a company. There is also the expense side of things. The goal, is for the income to exceed the expenses, thus showing a profit.

Unfortunately, for many, this is not the case. Income is found to be insufficient to meet all the expenses. Thus something has to make up the shortfall, usually debt.

In the corporate world, we call these zombie corporations.

Nevertheless, a large portion of individuals around the world find themselves in that same situation. There simply is not enough money to meet all the financial obligations.

Cryptocurrency is one of the solutions to this problem. Sure, it is easy to write this in the middle of a bull market. After all, during these times, people have dreams of Lambos and mansions.

Yet, if we look at things at a closer level, we see there are developments taking place that are going to feed into an entirely new financial system. This is not one based upon scarcity but inclusiveness. We are already seeing how quickly things can change for people with an airdrop and some attention. Suddenly, millions of dollars is created that did not exist the day before.

Of course, we see situations like Uniswap whereby billions are generated within 6 months, money again that did not exist before.

Referring back to our income statement, this is the revenue/income side of the equation. Those who are involved in cryptocurrency can see how lives can be changed with this technology.


There is another interesting trend we see that is tied to technology. Over the next decade we are primed to see radically changes in many industries. The technological solutions are already being laid. We are going to see industries disrupted to the point where, by 2030, they will not resemble what we see today.

The trend deeper into digitization is only going to continue. Eventually, that will give way to the shift into the virtual realm. Over the next 20 years, we will see this move start to blend how we work, socialize, and entertain ourselves. No longer will there be a separation of the Internet and us.

One thing that happens is with the digitization if things is they become commoditized. This means the scarcity element is removed from the equation. Most things that get digitized lose their "uniqueness". They also tend to find increased production, distribution, and shorter life spans. In short, the difference between the products diminishes.

This, of course, pushes it way into the pricing arena. When products are similar, price takes on more importance. In a world where things are commoditized, people end up refusing to pay a premium for anything. Eventually, this gets to the point where the push towards zero marginal cost takes place.

A prime example of this is photography. For most people, they are at the point where they can take all the pictures they want, for free. They spent nothing on the camera since it was included in their phone. The photos are digital, thus there is no cost to them. Even the distribution is basically free via email, messenger, or uploading to the cloud.

The next decade is going to see some industries find themselves in the position that film companies did a few decades ago. Just like we saw a shift away from cameras to photos, we will see the same thing elsewhere going forward.


For example, today we buy automobiles. People acquire them, usually through some form of financing, and then drive them for a certain number of years. Of course, they have to insure the vehicle, get maintenance done, fill it with gas, and replace the tires. One is also responsible for any damage that might take place or theft.

It is not going to be long before a large segment of the population shifts from buying cars to purchasing rides. As we move into an autonomous age, the idea of having the expense for something to sit 90% of the time simply will not make economic sense.

Thus, just like with pictures, the cost per mile is going to come way down.

We are faced with a similar situation in construction. With 3D printing starting to penetrate this market, along with advancements in robotics and AI, how soon before the builders are able to churn houses out at a pace unrecognizable today? When the technology improves, it is likely that they will reduce the time to construct the basic shell of the house by 80% or 90%. This will result in a huge cost savings.

Advancements in healthcare, education, and manufacturing are showing us that the digitization process is expanding. Couple this with the idea of automation and we can see how the second part of the income statement is going to be radically affected.

Radical shifts are going to take place in many industries. The entire pricing model is going to change. This is going to drive many companies out of business. Yet, as we learned with Amazon, if a company can automate and do things for cheaper, we will flock to it.

It is safe to consider that almost all areas of life will be affected over the next two decades. This is not a trend that is going to reverse course. It is in motion and only accelerating.

By 2040, we will be amazed what we use to spend money on. The idea of purchasing a lot of what we do will be completely foreign by then. It is akin to the idea of purchasing a newspaper to a Millennial. The concept is too radical for them to consider. Why would they do that since it is not part of their world?

Much of what we do today will be viewed with the same distain.

Technology will be driving both sides of the income statement in different directions.

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Floating 3D printed houses can be pumped out and floated away, one at a time, without moving the printer.

Pimp my house ... no make it pump my house.

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if a company can automate and do things for cheaper, we will flock to it

Completely true. The entire economic landscape is changing given the push from the lock-downs. Many of those businesses who didn't have a model to survive the new digital style have either gone out of business, struggling or closed. It doesn't help that the government has failed in getting aid to these business and essentially speeding up their demise.

I wonder whether or not people will only be purchasing rides or not. I have a feeling people still want ownership of their own vehicles as it would give them freedom to travel.

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It depends upon how expansive the network is. Until it is fully built out, I would imagine you are correct. However, once it is built out, I think it will be preferred.

Another thing to keep in mind, the governments, at some point, will likely outlaw human driving. Once they cars are orders of magnitude better, it is actually crazy to let people behind the wheel.

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I think the time period when computers are allowed to drive completely independently and humans are still allowed to drive on public roads will be relatively short. I give it a decade tops. All the data collection and growth in computing power as well as the ability of nearby cars to talk to each other will make computers so obviously superior to humans that human drivers will be banned.

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I'm stilllllll waiting for my hover board......

Yeah great post and I'd have to agree that these changes will be huge. The amount of shit I have copped from people about crypto being "fake" now have a look at the sector. Mainstream companies joining and they're even creating shit coins (Taco Bell)

This world, is a changing.

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I'm stilllllll waiting for my hover board......

And your Jetson's type flying car. We do have the video phone calls though and limited forms of Rosie.

Crypto is expanding at a pace that is going to overwhelm the average user. Within 18 months we are going to see it everywhere. No longer is this the lunatic fringe.

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Yup I don't feel like a loony on the fringes anymore 🤣

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I can't wait to just be sitting in my castle and having all my supplies 'air dropped' in via drone.

No more traffic - unless I take a robot taxi to go shopping ?

will there even be 'shopping' any more , maybe just for old farts and 'nostalgia'

I guess the only reason to leave the castle would be for a social life - hmm, I guess if I have my own bar and pool table people would just come to my place .

I'll never have to leave again - PERFECT - LOL

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You completely missed virtual reality and how, you wont even be in your castle most of the time. I mean you will physically but you will be operating in completely different worlds.

Perhaps you arent even on this planet but floating around in a space craft using your full immersion VR capabilities.

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Much of that will depend on technologies like neural linking.

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In curious to see a world where people don't have to buy things. A world of abundance. Even on a social level, this will change a lot in terms of how people interact and with whom they interact with. On an economical level, it eliminates the social strata. More people become more equal. Even merit might not even be a thing as we have robots/AIs become faster and smarter. The place of humans in this new world seems insignificant

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I am not sure we see a world where people don't buy things, at least not for many, many decades. At some point, we might get carbon nanofactories which will construct stuff from atoms. However, until then, we will sill see purchases.

After all, there is a ton of free music out there. Most anything can be found either on Youtube, Pandora, or Spotify. The later two require listening to commercials but the music is there (YT also has commercials so it applies to all).

However, people still buy music. It will be the same way going forward. Yes we will use things such as cars and other changes but you still will buy the shirt and shoes you are wearing.

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I think some areas of scarcity will always persist. Attention is such an area. It's a deep psychological need and there is only so much anyone can pay attention. Also, with manufacturing capabilities going up, some may develop all manner of crazy wants.

But on balance, I think people will be more relaxed about status because attaining it will no longer be a matter of survival or even well-being for most.

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It's funny, when I'm in here (on Hive) I see how fast everything is changing. When I go outside, it's still the same old world with nothing changing at all. The more things change, the more they stay the same. It will be interesting to see if that little adage holds true as the technology advances....great post as always.

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We are on the dawn of technological leap. We can soon watch the daylight of the technological boom where every part of the old industry are driven by AI and new technology. What we can do is prepare for it, and try to embrace it. Sooner or later, we sill be suing an invention man has never seen before. I am excited to that day.

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I heard a statistic quite some time ago where they were staying that 85% of the pictures that are taken in the world every day are on a smartphone. I am sure it is even more now given that was a few years ago. The one part of your post actually made me think of HDMI cables. Remember when they first came out and they were so expensive. Now they basically give them away for free.

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by 2040 we are all Chinese, or working for them :)

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