New investors in the crypto market often treat the entire space as one big sector. Currently, there are 11 sectors in the stock market. It can be argued that crypto is considered the 12th sector. Are there sectors within crypto's own ecosystem? Of course!
Let’s take a look.
First, let me mention that there are 167 categories/sectors of various blockchain projects. That’s a lot of sectors, right? But why don’t we hear about them? Because we are still in the infancy stage of this asset class. There is an abundance of innovation happening behind the scenes prepping for mass adoption.
Take for example -- transportation. The blockchain is probably the furthest thing from your mind when it comes to transportation. Yet, there are projects such as Carvertical, a blockchain solution for providing key information on a vehicle's history to prevent costly repairs or bad actors from selling faulty vehicles.
Can blockchain disrupt energy? Energy is another sector where there are projects that offer a unique approach, such as Energy Web Token. The innovation behind turning your unused energy into revenue is a dynamic way of decentralizing the energy sector. We can expect more innovation from this sector as we aim to reduce our carbon footprint.
We have a lot of illiquid assets around the world. Think about real estate or the oil in the ground. However, the process of converting those assets or resources into either cash or transporting them takes time.
Synthetics will change the way we can tap into what was once a difficult asset class to move in and out of. Synthetix protocol is based on the Ethereum blockchain. Imagine creating a digital version of Apple stock, oil and gas, or real estate. You can digitize these hard assets and sell them as synthetics. This will unleash a wave of buyers and sellers who normally wouldn’t have access to certain asset classes due to geographical locations and certain processes.
In a previous blog, I spoke about tokenized real estate and how innovative it would be. You can check it out here if you haven’t. My daughter collected her first dividend from a real estate project she invested in located in Chicago -- a place she has never seen nor visited. That’s the power of digitized economies.
I’m not going to keep you long. Head over to the CoinMarketCap categories page and check out all the sectors crypto has to offer.
Hey, you never know, you might create sector 168 with an idea or solution to a problem you have identified.
May the Horse be with you!
Written by Eric White