What Do Bitcoin, Gold and Land Have in Common?
Bitcoin, gold and land - when you first think of these asset classes, contrasting differences emerge, but these three unique assets share more in common than you might think. Let's dive in and discover these powerful investments on a deeper level.
Store of Value
A store of value is an asset, commodity, or currency that maintains its worth and can be exchanged without decreasing in value. Land was the main historic store of value together with gold and Bitcoin is the digital equivalent in the 21st century. Store of value as a concept has become increasingly more popular with the ongoing currency printing and asset inflation backed by the central banks to which there seems to be no limit. Unlike the fiat currencies, these 3 unique assets withstand inflation and aren't influenced by the government's actions.
Different format, same purpose
It's not only the assets that share things in common, but also the owners of these investments. Investors who are considering or already have invested in land, bitcoin or gold know that these options are creating wonderful opportunities for the future and provide a promising yield. Next to stocks and bonds these assets can help investors to beat inflation and diversify their investing portfolios.
Source: AAX Academy
They started as trends
Like everything in human history, when something new and exciting is discovered, there is an instant high demand for the newest invention or finding. If we take a look at the history, humans first lived as hunter-gatherers, looking for food and hiding from predators. It wasn't until 10 000 years ago when the first civilization was formed- we started to own land. Land owning got very popular and spread quickly, as the development of agriculture fundamentally changed the human lifestyle for the better. Same with gold, the exciting stories of someone finding gold made thousands of people rush to the rivers miles away to try their luck. The term "trend" and "viral" had already existed for centuries, it was just not defined yet. In the 21st century, these terms became the main keywords for the newest generations and everything new, exciting and in high demand was labeled as a trend. Like Bitcoin, this unpredictable cryptocurrency started off as a trend but has now started a revolution and is changing the world.
Scarce assets vs not scarce assets
For an asset class to be a store of value it has to be inherently scarce. There’s a limited supply of gold in the world and it is getting harder and harder to mine more of it. Same is true with Bitcoin, it is fundamentally limited in supply. Land works exactly the same way, although there are few places that are able to (very expensively) claim land from the sea, the supply is overall limited, [put in Mark Twain quote]. The popularity of land vs gold/Bitcoin as a store of value is much smaller, as it has not been offered to investors in a digital form. With LandEx liquid, diversified and transparent land investments that act as a store of value are possible.