Yes, you can make money off your blog and finding a specific niche is vital for that. But in the end I think that a blog is useful mainly for developing a profile. That is, if you just keep at it writing about things you love in a unique way, people will get to know you as a person -- what you do, what your interests are and how you see the world.
With your profile higher than it was in the past, you can then leverage that to make money. (For example by writing for mainstream sites and publications on subjects you enjoy.)
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