The Boys’ and Girls' Guide to Excess in 2021
Move over Bitcoin, collectibles are the new kid in class and are taking the investment world by storm.
What’s behind the boom? Record-low interest rates and a fresh $10 Trillion in the economy are taking most of the blame. The answer probably isn’t this simple though. Emotion, nostalgia, and diversification can be motivators as well. There’s the added bonus of quick money potential, too.
December 2020 didn’t put an end to the mania of markets while the economy suffered. Instead, you could argue that the seduction of getting rich quick spread faster.
Let’s get into the mania of Digital Beanie Babies , err “Investible Collectibles”
This Gif of a poptart cat (“Nyan Cat”) sold for 600k
This (formerly free) digital picture, a “Crypto Punk”, is one of several variations selling for eye-popping money
Punk 2890 bought for 605 ETH ($761,888.57 USD)
This 18 year old sold 2 pieces of digital art for $700k last week. Fewocious indeed.
(click picture for video link)
Does this feel similar to the crypto boom of 2017?
Bitcoin is back around 50k.
NBA clips, packaged as “digital trading cards”, are selling for hundreds of thousands of dollars. So far, NBA Topshot has seen over $230 million in sales over the past couple months
Not to be outdone, real trading cards are selling for staggering amounts as well.
Art has exploded with the invention of Masterworks, which lets everyday people (not accredited investors) invest fractionally in art pieces.
How about a pair of digital socks, which you can redeem for (wait for it)
A REAL PAIR OF SOCKS
“Invest” in rare alcohol? Wine not?
Rally Road is letting you invest in fractions of a car that will never be in your garage
Of course, nobody gets amazingly rich without Credit Suisse creating a 72-page assessment of the situation (link in excerpted image below)
If this market did have an face, it has to be Elon Musk.
He’s getting most of his recent attention for converting $1.5 Billion of Tesla’s balance sheet to Bitcoin. This feels like if Pets.com bought Webvan in 1999…
He’s a sharp guy though: he also created StarLink, SpaceX, HyperLoop, the Boring company, and Neuralink, which connects a computer to our mind.
Maybe where we’re going, we won’t need brains
Or maybe, surveying the current landscape, we’re already there…