New World, New Economy
Until recently, I had always been a traditionalist when it came to investments. I liked the assets that you can touch and feel. That’s why I gravitated toward real estate.
Will Rogers’ quote about investing in land is always stuck in my head:
“Buy land. They ain’t making more of the stuff.”
Being a traditionalist, I mostly ignored digital assets, but my opinion has recently started to change. As I dived into the current economy and discovered what drives the younger generations, I realized that many were spending just as much time in cyberspace as in the real world – shopping, gaming, socializing, learning, and dating. This whole new digital world was created where life was being lived, and commerce was conducted just like in real life.
There’s a name for this whole new digital world: the metaverse, a network of 3D virtual worlds. Then, as blockchain and encryption were integrated into this metaverse, spaces and “real estate” in this cyber world were given unique identifiers to allow for ownership and create value. This allowed for digital real estate to be bought and sold.
And just like in the real world, where locations that attracted the most visitors and demand commanded the highest prices, digital real estate in the metaverse that garners the most interest and visitors also proves to be the most valuable.
Besides real estate, the ultra-wealthy have always had a penchant for investing in other tangible assets that appreciate over time – art and coins being two of these assets. In the digital economy, physical art and coins have their counterparts in NFTs (non-fungible tokens) and cryptocurrency.
An NFT is unique data stored on a blockchain that can be sold and traded. Types of NFT data units may be associated with digital files such as photos, videos, and audio. NFTs allow visual, audio, and performance artists to digitize their artwork and sell it to the public. Because each token is uniquely identifiable, no two are the same – assuring buyers and investors of the uniqueness of their purchases.
In 2021, digital artist Beeple (Mike Winkelmann) sold a digital collage of his first 5,000 works of art called Everydays: the First 5000 Days at Christie’s in 2021 for $69.3m. The sale completely validated digital art and the security and uniqueness of NFTs – putting NFTs on the map and creating a boom in demand.
The new world and the new digital economy are offering a whole new class of assets to consider for investment – assets like digital real estate and NFTs that prove just as viable and valuable as their real-world counterparts.
Over the years, I’ve seen many investors miss out on the real estate and other alternative investments for one reason or another and, in the process, miss out on the above-market returns these assets offered.
There are now opportunities in the digital arena to benefit from digital assets that have the potential to offer similar above-market returns insulated from Wall Street volatility.
Don’t miss out on the new opportunities in this new world and new economy. Fortune has always favored the bold and the first movers, so don’t let hesitation hinder your personal financial progress.