Selling shovels and pickaxes will make you more money than gold digging
This story takes place in a not-so-distant past, in a not-so-far away country. The inhabitants of this country discovered a rare-yellowish metal. It shined brighter than the sun, it was perfect to use as a currency.
The inhabitants gave a name to the metal: Gold.
Gold was rare, but not so rare that anyone could go out and find some chunks of it.
To do so, inhabitants had to dig in the soil, sift the water of the rivers, bore in the mines…
It was the start. The gold rush. Gold was valuated so high that it was worth to drill in mine 10 hours a day to find some grams.
Knowing this, many, many inhabitants decided to become gold diggers.
The only 3 tools that anyone needed to become rich.
The new hope. The hope to find a big vein of gold and instantly get a high social status. The hope to find a lot of chunks of gold and instantly sell them for thousands of dollars.
It was what the gold diggers hopped for. Not everyone realized the dream. Some lost everything, their job, their faith and their family in the quest of some golden nuggets. They only kept their pickax, sieve and shovel. It was the symbol. The symbol of gold diggers.
In all of this, who made the most money?
The providers. They sold hundred of thousands of tools to the diggers. The providers are the smart people described in Sell or be sold by Grant Cardone
They made money by gambling on the greed of others.
Providers won the golden rush, without owning a single golden nugget.
They didn’t go out, they didn’t dig, they didn’t filter the rivers.
Providers came with ideas. Ideas to simplify digger’s job. And It paid. It paid a lot more than what diggers got.
Providers won the gold rush by providing adapted tools for the diggers.
The story repeats itself again and again
Many gold rushes happened.
- The golden age of buccaneers: Fights around spices and exotic resources in high seas.
- The golden bubble of internet: Adding a .com to a venture doubled it’s valuation
- The blockchain era: Virtual currencies are piercing the sky – Here is how to get some chunks of bitcoin for free!
For each of them, there were 3 levels of strategy.
2: Gold digging
The golden age of buccaneers
1: Notice that the price of spices is skyrocketing. However, do nothing. Simply try spices, salt and pepper
2: Lend a boat, make up a team and conquer new countries. Exchange with the merchant, come back with rare spices. Make a fortune
3: Become a pirate, plunder the galleon coming back from the new territories. Steal all there resources and sell them to merchants. Another alternative is to lend the boat which is the tool used by gold diggers
The golden bubble of internet
1: Buy from internet’s stores. Don’t profit from the growth of a giant
2: Create a website for your brand/yourself. Add a .com to your business and double it’s valuation within hours
3: Create platforms to help gold diggers build their online business. Social networks, search engine were doing the job at this time
The blockchain era
1: Notice that the price of crypto-currencies is skyrocketing. Do nothing
2: Invest in virtual coins, buy chunks of Bitcoin, Ethereum… Promote them through your family and social network. Read about blockchain, get invested by creating your coins and learning how it works
3: Create platforms for virtual coins traders, buyers and users. Develop games using the new possibilities of blockchain. Find new applications for the chain and apply them to our daily life
What is a gold rush?
In a nutshell a gold rush happen when there is a new resource which is obtainable by most. Many people want to gather the resource because it is rare and new. Entrepreneurs identify a need, build a solution and sell it to the greediness of gold diggers.
Guess who’s getting the most of these rushes?
Not watchers. Not gold diggers, even it’s not so rare that the first gold diggers make a descent amount of money. Providers do because they are at the top of the food chain.
New gold rushes
We aren’t in the far west anymore. Gold diggers don’t need shovels nor pickaxes. They need tools to harvest the benefits of the blockchain and future technologies. My bets on the next gold rushes are the following:
- Artificial intelligence rise
- The conquest of Mars
- Asteroid mining
- Under water cities
That’s just my bets, and they will happen quicker than you think. Artificial intelligence rise may happen before the end of the decade. It’s not a question of possibility, it’s a question of time.
I have no clue. I don’t know how our society will change due to these new resources, but they will. For the best or the worst. Changes will happen, and they are imminent.
Meaning that there are lots of opportunities in the next gold rushes for gold diggers and providers.
The only limitation there is your imagination.
Yes your imagination. If you are reading this, you surely aren’t a watcher. Either you are a gold digger or an entrepreneur. You aren’t a watcher.
Now it’s up to you to think about it.
Are you willing to hustle gold digging for years to only reap crumbs
Are you willing to find the next venture, selling the best tools to gold diggers thus making an enormous profit
It’s your choice.
What are you doing in this gold rush? Are you a gold digger? Are you a provider? Tell me your story!