Consider how a supply chain is built. A wooden chair starts off in the forest, growing in nature, until a government sells the license to cut trees to a company, or it purchases land from a private owner. Then, it obtains equipment and gains experience in chopping, hiring skilled labor, and cuts the trees.
The process, which leads to the beautiful chair you see in your kitchen, is just the beginning. The lumber company makes a profit by selling the raw material to a factory, which makes wood products for the furniture industry and has to ship it to their location. Sophisticated machines curve the lumber into pieces of wood, which are then sold, at a profit, to furniture factories. They, in turn, create a product, which they sell to a wholesaler, at a profit.
The wholesaler, which has standing relationships with retailers, sells it to them at a profit, and ships the products, which end up in a showroom, until the retailer, which spent time and money creating an attractive store, can sell the chair to a willing customer, at a profit.
We can debate, whether or not, this is the most effective way to sell a chair, but every link in the chain adds value.
It is necessary. Nowadays, the retailer can be online, which allows it to create an online store, and, of course, sometimes there is no wholesaler involved, but the point is that this is a supply chain.
When you hear about the middleman, this is not what we’re referring to.
All of these corporations and individuals add value, so we can’t eliminate them. Someone has to trim lumber. Another must ship it. And another must be in charge of curving it, while others design it and sell it.
Technology and progress do away with many things, while others remain vital.
In the coming years, tokenization will eliminate many centralized financial middlemen, government databases, title companies, and paper pushers.
This will make transactions faster, more secure, and trim the fat.
In other words, many of the fees, which have to do with real estate sales, for instance, will be greatly reduced.
Progress, in general, makes things more affordable and helps to retain the bulk of the profit with the owners of the property.
I expect tokenization of assets to become a game-changer, which is why the most reliable blockchains, such as BTC and ETH, will prosper.
The only thing you have to fear is being behind the times, which is why institutions are attempting to spread fear regarding the future.
Don’t be disillusioned – the world is growing smarter, and I see blockchain technology, and within it, cryptocurrencies, playing a significant role in ridding the world of corruption and government intervention.
Best Regards,
Brad Robbins
President, PureBlockchainWealth.com
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