14 Apr 2022
Collectables: Masterworks
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Bitcoin has become the 10 most valuable asset globally.
The cryptocurrency market is valued at US$1.9 trillion and Bitcoins makes up about 41% of the cryptocurrency market.
If you are a student of Benjamin Graham and his Value Investing principles then you will quickly come to understand that Bitcoin is in fact a collectable and thanks to technology, this collectable has been able to be divided into tiny units which can be bought and sold for a price.
The concept of Bitcoin has now also helped traditional collectables such as paintings to be unitised into a market just like cryptocurrency trading.
Click for art.
The thing to remember about buying collectables is that they rely on scarcity and as long as there is a group who want to trade in this limited item there will be a price.
Once there is no longer a group that wants to trade in this collectable the price will evaporate.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.
