Pages about investing in different types of digital assets
Why invest in digital assets?
There’s a tsunami coming. A veritable wall of money that will bring about the greatest wealth redistribution in human history. The future of money and of assets is digital. The faster your get your head around this idea, the better of (financially) you’re going to be!
Digital assets are being created and socialised as a new store of value in more ways than most people can imagine. These assets are spinning out of the exponential growth of software technology, major global generational change, and the convergence of macro innovation themes. We’re talking:
- Proliferation of the internet, smartphones and apps
- Software, programming and coding advancements,
- Artificial intelligence, and
- Blockchain technologies.
Digitisation is causing a once in a generation structural shift in the financial system that we talk about more here.
If you want some evidence that a wall of money is coming to digital assets, check out this survey of institutional investors and their intentions to invest. The survey is by Fidelity.
Or you can read this report from PwC about the plans of traditional hedge funds moving capital into digital assets.
What are digital assets?
Digital assets are digital stores of value over space and time.
Most people think of cryptocurrency when they think of digital assets, but they’re much broader than that. Digital assets carry some of the same characteristics of traditional assets. But digital assets are also very different from the traditional assets in two main ways:
- They bring leverage, and
- They are permissionless
If you follow the musings of silicon valley venture capitalist Naval Ravikant, ‘leverage’ is simply ‘products with no marginal cost of replication’. It’s when you make something once with any costs built in and there is no additional cost after that each time you make it. Digital products are a great example.
The internet and blockchain technology is an unbounded opportunity to build leverage and through it, build wealth. Let me say that again so the penny really drops…
The internet and blockchain technology is an unbounded opportunity to develop leverage and build wealth.
Because unlike using capital to build wealth, using the internet and blockchain technology to build wealth doesn’t require permission.
Lets look at this in a bit more detail.
Getting ahead with digital assets
Traditional FI strategies rely heavily on the traditional financial system which requires you to have “capital’ which, in turn, requires ‘permission’. You need capital to meet buy-in rates for investment funds. You need capital to put a downpayment on a home. You need capital to be a ‘qualified investor.’ And so on.
Without this capital, you just can’t get a start in the traditional asset system.
You build capital through income and savings, you borrow it, or do both. To save capital, you need time which is our most precious resource and something we don’t want to give away freely. It’s also difficult to save capital at the scale required to invest (tens of thousands) when the value of your money is going backwards at an alarming rate. It’s going backwards because governments are devaluing fiat currency which erodes the value of your savings when compared to assets.
To borrow capital, you need permission. From a bank or other lender. And this where traditional FI strategies can face some significant headwinds if not come to a screeching halt in the current financial environment.
The opportunity in digital assets
A digital assets strategy is different to traditional FI because it:
- Recognises that the rules of money are changing with technology. A parallel global digital asset ecosystem is unfurling in front of us. This means a new investment landscape and opportunities to build wealth.
- Is open to anyone and everyone. Digital assets are borderless. They don’t discriminate between rich and poor. You can start anywhere in the world with an internet connection and as little as $20!
It’s time to pivot into digital assets people! Not many financial independence blogs are talking about how. We do!
We talk A LOT about digital assets because we think they are the future. They might also offer a faster and more accessible way to get to financial freedom. We don’t want you spending years of frugality build a whopping great asset base before you can get to financial freedom. We want you to leave the rat race earlier than you might do with Traditional Fi.
Digital assets is where we at The Live Life Project add value over other financial independence blogs.
Most of all, we want you to be on the right side of the exponential technology change that we believe is happening, accelerated by the pandemic and lockdowns of 2020. The Fat Stack are out there people! So let’s get investing. 🙂