Understanding and utilizing new leverage can help you make money.
Leverage refers to using a force other than one's own to lift heavy objects.
Using someone else's power is called "human leverage" while using someone else's financial power is called "financial leverage".
Both of these have been around for a long time. Human leverage, which utilizes labor, has been intuitive since prehistoric times. Working together with others to lift a rock is easier than doing it alone.
Financial leverage, which utilizes someone else's economic power, is relatively new compared to human leverage. When the US dollar abandoned the gold standard in the 1970s, financial leverage became more active.
With the emergence of the internet, these types of leverage have undergone changes. Specifically, with the advent of the internet, new leverage without physical constraints emerged in cyberspace where there are no reproduction costs.
This new leverage refers to using machines, rather than the labor or financial power of others, to lift objects.
For example, if a private tutor works alone, his labor power is "1". However, if he hires other private tutors to teach, he is utilizing human leverage.
Going further, financial leverage involves pooling money from banks or other people to create an academy. An example of utilizing financial leverage.
Expanding the academy not only physically but also through the internet is a typical example of utilizing new leverage.
Using leverage that relies on human or financial power requires "permission" and can lead to various problems. However, leveraging machines does not require permission and only requires proper commands. A key feature of new leverage is that there are almost no reproduction costs. Examples include coding, YouTube, and various media.
Emerging new rich people have succeeded by utilizing new leverage. Internet-based businesses starting in the 1990s, the mobile revolution in the 2010s, and blockchain-based businesses centered on Bitcoin in the 2020s will become the expansion and turning points of new leverage.
In summary, it's crucial to discover and use new ways to gain an advantage. To stay competitive, we need to understand and adapt to new leverage in line with technological advancements and societal changes. Using technologies like the internet, mobile devices, blockchain, and AI will present challenges and opportunities for achieving economic success in this era.
