THE FUTURE OF ALTERNATIVE INVESTMENTS IN A TECH WORLD

Humanity is always looking for ways to grow wealth and to sustain itself. To do this, it has typicall harnessed the resources at its disposal leading to the vast development that has occurred historically. This characteristic of the human narrative is a constant that is impossible to alter and it is cast in the immutable truth that people will always use that which is at their disposal to grow, invest, flourish and continue the process of life. 

It is therefore no surprise that people will use the innovative technology and modern tools at their disposal to invest. In that regard, where alternative investments previously took the form of Venture Capital, Real Estate and Commodities, it appears a new alternative has emerged. With the advent of crypto-currency and the insatiable human appetite to invest, it is no wonder that crypto-currency is being used both speculatively and otherwise as a form of alternative investment. This begs an exercising question: 

Is crypto-currency an investment or a currency? 

The answer to this question is quite easy. The same way in which traditional Fiat currencies can assume both the character of an investment as well as a currency is the same manner in which crypto-currency can be both an investment and a currency. However, the dilemma thickens as the following question is brought to the fore: 

If crypto-currency is both an investment and a currency, which is it more of? 

This is the more complex question. The non-regulation and non-recognition of crypto-currency by many governments justifies one for arguing for its asset status. Further, the motivation behind people’s purchase of the bitcoin seems to be more of a desire to store value than a need for a medium of exchange. In fact, Tom Meyvis, professor of marketing at New York University’s Leonard N. Stern School of Business states that more people embark in Bitcoin for speculative and asset storing reasons than to use as a medium of exchange. The Bitcoin and other crypto-currencies signal a new dispensation of wealth creation and wealth ownership accessible even to the previously disenfranchised member of society. 

In light of the above therefore, there is a case for arguing that the world of alternative investments will never be the same again as there are now digital alternatives to traditional alternative investments. In the years to come, digital tokens could very well form part of many prominent investment portfolios.