Vladimir Okhotnikov about business in Metaverses
Vladimir Okhotnikov: where is your business niche?
Vladimir Okhotnikov is a crypto expert, publicist, investor, and developer of large-scale crypto projects.
The term business is a complex and multi-valued concept. Imagine a guy on a corner selling hot dogs. He’s in business; he’s feeding his family. And right next to him, in a glass and concrete business centre, the head of a big corporation is holding a meeting. He’s in business too.
Both are subjects of the economy and are essential to society’s everyday life. The guy with hot dogs is no less important from an economic point of view. For example, in the US, small and medium-sized businesses create 60-62% of GDP.
It’s just that every business finds a niche, the one where it’s most successful.
The situation is similar for investments. A pensioner who has bought a pair of inexpensive shares and expects dividends and a billionaire who will invest several billion dollars in a promising startup can call themselves “investors”. They also occupy their niches. A billionaire is not interested in spending time on such stocks, and a pensioner doesn’t have a pair of extra billions. However, as a puzzle, they fill all the economic space and perfectly complement each other.
Business investment – these are very capacious concepts. When you start a project, you imagine what niche it will take. You focus on certain customers and understand who your competitors will be. You assess your resources, and abilities, and start working. You’re not going to come across projects from different niches, you’re sort of existing in parallel worlds. Street traders cannot meet for business with the boss of a large investment company. But they complement each other in the economy of the city and the country… Vladimir Okhotnikov
This may seem like an idyllic picture and a perfect society. Everyone is free to do business; everyone occupies a niche that fits his abilities. Working together creates synergies that ensure economic growth.
All this sounds beautiful. Unfortunately, the real world is far from idyllic. The economy is not working as we would have liked, and our world is far from a shared prosperity and harmony.
This is largely the fault of the state, or rather, excessive state interference in private business.
Free market as a tool for economic growth
Adam Smith, in the late 18th century, proposed the theory of the “invisible hand of the market.” In short and simplistic terms, we can say this: let the state leave the business in peace! The internal forces hidden in society will bring order and provide the most effective economic trajectory.
Unfortunately, only a few instances have seen the full implementation of the free market organized by Adam Smith’s precepts. Sooner or later, the state intervened, took control, and transformed the free market into a manageable market.
However, there were some cases when keeping the state away from economic decisions was possible. An excellent example is the US of the XIX century. There was an industrial revolution in the free market. The federal authorities had little or no interference in the business, and “on the ground”, the company was controlled (control was minimal) by those involved. The economy has evolved: “The state is only interested in the result; do your business, and we don’t bother you.”.
This time is associated with the Wild West, railroad construction, and train robbers. No matter how we relate to this period of American history, it is only necessary that in just one generation (a moment by historical standards), an agricultural country has become a mighty industrial power, surpassing European competitors.
The ideal state of the market is complete freedom without any state influence. The state has enough important things to do, and it shouldn’t waste time meddling in business. Does this mean that there should be no restrictions at all? Of course yes! Business doesn’t need any restrictions; everything must be determined by the ethics and morals of each of the market participants. The ideal system of rules (which can include some restrictions) is formed within a decentralized system of relations. It is not an issue of the moment, the transition to an ideal market takes time, but the process has already started… Vladimir Okhotnikov
Another more modern example is the development of the crypto business. Recall: In the 2010s, various cryptocurrency projects appeared one by one. Binance, Kraken, CoinBase – these names have become famous mega-brands, and all started in the free market. The market itself has put everything in place very quickly. The most skilful and lucky have headed the most prominent crypto companies; someone had to settle for a lower place, and someone else left the business; no one guaranteed success. It’s a market!
Over the years, a worldwide crypto-business infrastructure was built. There were no business plans, programs, rules, or laws. It was just Greenfield, if you want to go into crypto, come and work, it’s up to you. Initially, governments largely ignored cryptocurrencies, viewing them as entertainment for freaks. And that was good because the crypto enthusiasts had enough time to start the process and make it irreversible.
The crypto business gradually developed, and states became interested in it. Interest means control, and it was different in different countries: if China did not think and simply banned everything related to cryptocurrencies, the US and Europe preferred to limit the crypto business by a strict legislative framework.
The US SEC took active action. Almost simultaneously, trials were started against leading crypto exchanges; charges were brought standard, and the main one was illegal securities trading.
Virtually all major players are gradually beginning to integrate into the existing legislative system. The crypto business is becoming more organized and formal but less dynamic. It is almost becoming not a substitute but just one part of the fiat economy.
Those who disagree will sooner or later be forced out of business. This is what happened to Changpeng Zhao, the founder of Binance. Accusations and lawsuits from US and European authorities followed one after another. Zhao resisted for a while but still agreed to all the terms, paid a large fine, and left the company, effectively handing it over to the authorities.
The reality of over-regulation
The state acts as an institution of undue interference in business affairs. Almost always, attempts to regulate or restrict business are driven by elitist groups acting in their clan interests. What we call the “State” is the instrument of the elites.
Who might be interested in regulating the crypto market?
Let’s see who will benefit most from the market situation in about six months. Analyzing any event, you should ask yourself the question: Who benefits?
One of the main problems of the modern economy is that elitist groups can influence competitors through the state and set their own rules of the game. Fair competition turns into elite power struggles.
Indeed, the State is too general a concept. As soon as there is an issue of regulation of business or restrictions, it is necessary to look to which of the elite groups close to power get benefits from them. This is unfair competition, and it kills the free market. However, we are so used to such an organization of business that we consider it natural. And it’s sad… Vladimir Okhotnikov
Such monopolization of political decision-making and rigid control systems severely limits the capacity of those who do not belong to the elitist groups, the majority of businesses. It would be best if you sold hot dogs and not think of taking office in a skyscraper of glass and concrete.
Unfortunately, this is how our economy and political system work.
Is it possible to make a difference?
Yes, it is possible. All you have to do is create your world based on the principles of freedom and justice. This world is called Metaverse.
Metaverse as a greenfield for new business
Although Metaverse has been known since the 1990s, we have only now understood and felt its real meaning. Of course, we have all seen different versions of digital worlds in the cinema, but it is one thing to look at a picture of a beautiful city, and quite another is to walk the streets of this city, sit in a cafe, go to a museum…
Today, the image of the future Metaverses is formed, services are tested, and infrastructure is almost ready to be launched.
To some extent, Metaverses are becoming the new Wild West, a space opened to business. Will they all be places of freedom and fair competition?
One should not expect that all Metaverses will become benchmarks of business freedom. Large corporations developing their Metaverses will follow the game rules set by the state. Suppose social media sites and accounts are blocked for “breaking the rules of the service“. In that case, if a seemingly reliable Tether starts blocking crypto-wallets, you can hardly expect a more loyal attitude in the digital space.
However, no one now has a monopoly on Metaverses. Dozens of projects with different functionalities and different conditions of entry into the business are already being developed, so it is almost guaranteed that you can find your niche for doing business.
The Metaverse is a unique place. In our real world there is always some predetermined nature of what you will do. The cost of entering some business niches is simply prohibitive. You need to have capital, get an education in a good university, be a talented manager and acquire good business connections, preferably as close to the power as possible. In Metaverse all this will be simpler and cheaper by the order… although, managerial talent will still be necessary… Vladimir Okhotnikov
Here, you will no longer have the limits of the “real” world. We are now in a unique situation; some spaces are waiting for you to come and run your business. At the same time, the entry price is radically lower than in the real world, and there are no restrictions. This is reminiscent of the Wild West when an intelligent and determined man could make a fortune quickly.
In Metaverse, you can start by trading hot dogs and head up an investment company. You will not be prevented by the clanship, colleagues’ biased attitude, and regulators’ demands. Where else can you move between business niches?
Metaverse is becoming a place where a real rally on business development of new digital spaces will begin soon.
And it will be interesting!
