The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Asset Tokenization.
The advent of cryptocurrencies has made it possible to tokenize real-world assets. Anything from copyrights to real estate and art pieces to commodities can be tokenized and represented in form of a cryptocurrency token. For example, using blockchain, we can tokenize a luxury real estate property worth $10 million and represent it as one million crypto tokens worth $10. This adds more liquidity to an otherwise illiquid asset and makes the exchange of even non-liquid assets more convenient. Additionally, the buying and selling of these assets become cost-effective, fast, and more transparent..
LENDING AND BORROWING
Decentralized finance applications have disintermediated the lending and borrowing process. They allow individuals to lend and borrow funds almost instantly using cryptocurrencies. In addition, as cryptocurrencies are borderless currencies, you can lend or borrow from these platforms irrespective of where you live.
GAMING
Cryptocurrencies, in the form of non-fungible tokens (NFTs), are already disrupting the gaming industry. In the gaming world, NFTs are crypto tokens that represent a unique digital asset inside a game. As each NFT represents something unique, they have different values and are not interchangeable. This gives every user a completely authentic in-game item, the likes of which is owned by no one but them. Digital cats called Crypto Kitties are the most famous example of blockchain-based NFTs.
STORAGE
The centralized cloud storage platforms have many major shortcomings from high fees to server outages. This has paved the way for decentralized storage created through the use of blockchain. In such a system, anyone can rent out their free storage space.
Remittance & P2P Digital Payments
In the past, Bitcoin was primarily suited for large transactions due to block time and fees. However, with the introduction of the Bitcoin Lightning Network, a second-layer solution added to Bitcoin's infrastructure, it has become viable for transactions of all sizes.
If you had 250 GB free on your disk, you could rent it on a decentralized storage platform such as Filecoin and earn a passive income from it. People who opt to buy your storage space would pay you in the storage platform’s native cryptocurrency.
Through its hardware wallet and application, Ledger aims to help you reap the benefits of cryptocurrencies in a user-friendly and secure environment. By educating more people about cryptocurrencies, Ledger will also enable more people to claim ownership of their money and open access to the above-mentioned use cases. This will help a wider population to embark on their journey to financial independence.
... Its a whole New Industry !
QBT ,,,, has a 'B' in it ... and both Crypto & the 'B' are in their formative phase ( of the 4 phases that all new products , inventions pass through),,,,, they're here to stay ...and QBT is 'potentially' at the forefront ! ....many here know it ... and t
Pas as far as I can tell QBT's methods are all focused on Proof of Work Blockchain, which relies on miners competing to solve mathematical problems using massive amounts of energy, whereas all the use cases you listed could easily be provided by far more efficient Proof of Stake Blockchains provided centrally, or decentrally. Something else to consider is that any entity can create their own Blockchain's, none of your use cases require use of inefficient Blockchain's like BTC. I'm not against Blockchain, I just don't see any value in Bitcoin.
... So Fleccy ... what 'value' do you see in Art, a Picasso, or say Tracey Emins 'bed scene ' ??
How do you value it ?
I don't see the comparison between art and Bitcoin as valid, since art is valued based on its uniqueness and there are 20 million Bitcoin's currently mined. A more valid argument is that Bitcoin's value is based on the belief of the participants, whether or not Bitcoin holds value would be dependent on the ratio and actions of true believers vs speculators.
Have you ever put sterling under the microscope as much as you have Bitcoin? It's pretty strange stuff https://www.instagram.com/reel/C5XhTqxu15X/?igsh=c2lkN2ptdW9kN3Jv
'......A more valid argument is that Bitcoin's value is based on the belief of the participants,....'
... and surely so too is Art Fleccy , as its based upon the belief of a select number of buyers, yet the man on the street would have to pay that silly money for 50€ worth of board/canvas and paint !? ... its tangible value is no more than 40/50$ ... its just another way to look at it .... its comparing chalk and cheese really , yet is a clear example of where.... the 'who does put a value on what ' applies.. .. if the people want 'it' , then they'll place a 'value' on it and trade it ... just like Art... and just like Crypto....
....i see Crypto /Blockchain... not as a replacement to CFi , however a distinct alternative ... thats intrinsically driven by the ever growing global digitisation ..... and frankly i see it it as an illusion to think its going to disappear ...
... and ps ... you never answer the question that i've asked a good few time now ... where 'does' Art get its value ? Indeed 'who ' decides its value / worth / use etc ... Who !!??
Personally Pas I don't see much value in Art either and see little to like in many of the old masterpieces, much of the pricing is likely due to millionaires and Billionaires outcompeting each other to show off their wealth. It reminds me of the outraged Italian chased by a waiter because his €500 tip was insufficient, demonstrating the crazy surreal world we find ourselves in today. If the Italian had any sense he would find a nice reasonably priced restaurant, where they serve good food at down to earth prices and appreciate his business, especially if he gave them a tip equaling the price of his meal.
https://www.dailymail.co.uk/news/article-12408161/Very-rich-Italian-left-outraged-chased-reprimanded-Saint-Tropez-waiter-leaving-500-euro-tip-meal.html
That story is just one example of the weirdness permeating through society today, where sense and value are disconnected, especially when it comes to valuations of many stocks and Crypto.
'...........especially when it comes to valuations of many stocks and Crypto.'
... and so many other things .... its not just Crypto ..... Crypto goes hand in hand with the ever growing global digitisation .. and always will .... its here to stay Fleccy ... NFT's are just like the various painters all over the world , most worth zilch, some worth a bit more because pple will pay a bit more ... BTC/ETH and one of 2 others ... are the master-pieces !
..A more valid argument is that Bitcoin's value is based on the belief of the participants,.
Just like Fiat money is.
Not really, Fiat currency values are based on the economy of the issuing block/Central Bank's. The Euro is based on the EU economy, Sterling is based on the UK economy and the Dollar is based on the US economy, although the US appears to get away with writing blank cheques due to their status as the World's reserve currency. Unlike Fiat, Bitcoin has no Central Bank and isn't associated with any economy, so its value is based purely on belief and speculation.
The Bitcoin Fiat comparison is yet another fake narrative used to hype the Token and build belief that Bitcoin is somehow the same as, but better than, Fiat.