![]() None more so when a digital Gucci bag sold for more than the real thing. NFTs allow crypto investors to follow in the Medici’s footsteps, with virtual fashion items blurring the lines between reality and fantasy. Without patrons such as the Medici family in Florence, there would have been no Renaissance gems like Botticelli’s “The Birth of Venus” or Donatello’s “David.” These works became status symbols showcasing the newly rich’s good taste. Indeed, many of the world’s finest paintings and sculptures have been tied to power and money. Whether it’s Sir Tim’s code or a Uffizi Gallery masterpiece, art is what someone is willing to pay for it. Sir Tim never profited from inventing the Internet, choosing never to patent the code, and any proceeds from the Sotheby’s auction will go to charity. His NFT is being made available on the Ethereum blockchain, including time-stamped files of the source code, animated visualization of Sir Tim’s code, an explanatory letter written by the British inventor, and a “digital poster” of the code. More recently, Sir Tim Berners-Lee’s original code that created the Internet went on sale at Sotheby’s. In March 2021, American graphic designer Beeple sold an NFT for $69 million at a Christie’s auction, while Jack Dorsey, CEO of Twitter, sold his first tweet as an NFT for $2.9 million. NFTs allow investors the chance to buy and sell unique virtual items, such as digital artwork, memes, and videos. Likewise, non-fungible tokens (NFTs) have taken the financial world by storm this year. ![]() STOs can act like a utility and, thereby, gain long-term value, making them attractive to crypto investors looking to diversify their portfolios. Whenever you buy or sell cryptocurrencies, it’s verified on a blockchain network, or a digital ledger technology (DLT), that stores your transactions on thousands of decentralized servers.īlockchain has led to the rise of the security token (STO) in 2021, a digital, smart contract, allowing for the fractional ownership of previously illiquid real-world assets, such as real estate or vintage cars. It pays to check your crypto’s fundamentals and ask yourself whether it will grow over time? Can it operate as a future utility or provide a competitive advantage to an industry?īitcoin (BTC) and Ethereum (ETH) are safer bets right now as they can be used in the real world, whereas smaller currencies are purely speculative and cannot operate as a utility. So if you’ve been waiting for prices to drop, think carefully about which currency you want to buy. Choose your crypto investment wiselyĬrashes are awful for existing investors, given the enormous losses, but a fire sale opens doors for newcomers. Another reason for the May 2021 cryptocurrency crash was Tesla CEO Elon Musk’s decision to suspend Bitcoin as a payment method due to its environmental impact.īitcoin requires it to be adopted by merchants to succeed, and many investors were spooked by Musk’s call, given he had previously been a supporter of Bitcoin. Since May 2021, cryptocurrencies have taken a significant hit, with all the big tokens, including Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE), falling in price.īitcoin dropped in value to $30,000, down from its market peak of $65,000 back in April 2021.Ĭhina recently imposed restrictions on cryptocurrencies, with Beijing banning banks and payment firms from facilitating crypto transactions. They are not regulated by any financial authority, making their value subject to extreme volatility. Should you buy cryptocurrencies?Ĭryptocurrencies are virtual money that you can trade online, storing them in virtual and hard wallets. ![]() So are cryptocurrencies worth the risk? What are NFTs? Is domain investing a more viable alternative? Let’s dive in. ![]() The World Economic Forum predicts that 10% of the world’s GDP will be in crypto assets over the next ten years. The total value of crypto is currently around $2 trillion, despite many traditional bankers saying they have no ‘intrinsic value.’ Savers are looking elsewhere for a return, hence the rise of Bitcoin, NFT, and domain investing. They may rise again, of course - but unless you’re an economic prophet, it’s impossible to say when. When was the last time your savings gave you a decent return? We’re living in a low-interest world, with borrowing costs down by historical standards, meaning interest rates have fallen to almost zero. ![]()
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