Entry and Exit

The simpler the problem, and the fewer people involved, the easier it is to standardise. The easier it is to know the market price. If there aren’t barriers to entry and exit, supply will respond quickly. In April, the price of Oil turned negative. This wasn’t because Oil is worth nothing, even in a world aware that we shouldn’t be digging up dead stuff and burning it like we do. The reason was simply storage was reaching capacity, there was still “new” oil being produced, and no one wanted to pay to store it. Traders often buy and sell contracts for oil with no intention of seeing the oil themselves. They just sell before delivery. If no one wants the Oil, and you are at a computer in a suit (or at home in your underpants), you don’t want delivery. The problem with the question “what do you want to be?” is that we often define ourselves by a single problem. We don’t build in the ability to adjust to changes in supply and demand. Money making revolves around Capital (to survive and invest), Containers (a way to get paid, and to control supply and demand), and Problems (clear ask and offer). Don’t define yourself by a problem. Don’t value yourself by a price.