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Blockchain Is the Airbnb of Digital Assets

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One of my colleagues owns a vacation home on a lake in North Carolina.

It’s in a sleepy resort town where they filmed the ’80s movie Dirty Dancing.

He spends a month there every summer. Sometimes he visits for a weekend in the off-season.

The rest of the time, he rents it out on Airbnb or Vrbo.

These internet platforms let owners rent out rooms or an entire house.

With the income he generates from renting it out, the house pays for itself.

Renting out a room or a second home is part of the new sharing economy. Airbnb has 660,000 listings in the U.S. alone.

This is the information age. Now, any two people can engage in commerce.

The sharing economy pairs riders with drivers (Uber and Lyft). It also helps people find local handymen (TaskRabbit and Handy).

Statista expects this market to grow to $335 billion by 2025. It was only $15 billion in 2014.

The sharing economy provides digital platforms for physical assets such as homes and cars.

But it also works for digital assets such as videos, music and photos.

And there are also digital resources. These include:

Cloud storage.
Network bandwidth.
Computational power.

The next phase of the information age will let owners of digital assets and resources share them.

Just like how my colleague can rent out his vacant house.

Getting Rid of Gatekeepers

The world is going digital. This shouldn’t be a surprise.

We were heading in that direction, but the pace accelerated with the pandemic.

It forced us to do more things online, such as shopping, working and learning.

This is creating a boom in digital assets such as photos, music and videos.

Currently, gatekeepers sell or rent these assets to you.

Streaming music needs Spotify or iTunes.

Watching a movie requires Netflix or Hulu.

Even storing photos requires Apple’s cloud service.

These centralized platforms keep track of who owns what. They also ensure that consumers pay for their digital assets.

But blockchain will flip the entire digital world on its head.

That’s because this technology keeps track of who owns what.

It also allows “smart” assets. That means the creator automatically gets paid when their content is shared.

That means you won’t need Netflix. You’ll be able to get content directly from the creator.

Blockchain Gives Power Back to the Creators

The blockchain will allow the sale of music and videos directly to the consumer.

Music companies and streaming services will no longer take a cut of the revenue.

We’re already seeing this happen with nonfungible tokens, or NFTs. A creator can sell an NFT directly to a consumer via OpenSea.

The consumer can take this NFT and sell it elsewhere. And there’s no underlying platform that’s necessary to use this NFT.

Bitcoin showed that we could transact without a middleman. But the next iteration will take that concept one step further.

Airbnb and Uber let us share our physical assets. And blockchains will do the same for our digital assets and resources.

Regards,

Ian King

Editor, Strategic Fortunes

Morning Movers

From open till noon Eastern time.

Bloom Energy Corp. (NYSE: BE) designs, manufactures and sells fuel cell systems for on-site power generation. The stock is up 36% this morning on the news that South Korean conglomerate SK Group struck a deal with the company to buy at least 500 megawatts of fuel cells worth roughly $4.5 billion.

Hut 8 Mining Corp. (Nasdaq: HUT) is one of the largest cryptocurrency miners in North America. It is up 15% on the news that it is expanding operations with a third mining site that is currently under development in Ontario, Canada. The site is set to go online by the end of the year.

Stratasys Ltd. (Nasdaq: SSYS) provides 3D-printing solutions to various industries. The company is up 13% today after being in the spotlight recently for creating a 3D-printed baby grand piano as a display case to showcase the artist Prince’s custom shoes at the Paisley Park Museum.

Lucid Group Inc. (Nasdaq: LCID) designs, engineers and builds electric vehicles, EV powertrains and battery systems. It is up 13% today thanks to a series of good news out of the company recently. It is gearing up for mass production of its vehicles, and all the news related to that next step in the company’s future is exciting to investors.

IonQ Inc. (NYSE: IONQ) is a quantum computing hardware and software company that is up 12% this morning. The stock went public via a SPAC deal earlier this month and has been a bit volatile since the deal closed. It is having a good day today after trending down most of last week.

XPeng Inc. (NYSE: XPEV), the Chinese electric vehicle maker, is up 11% today. The move came after the company unveiled a flying car at its annual Tech Day on Sunday, along with the announcement that it would begin mass production in 2024.

Galaxy Digital Holdings Ltd. (OTC: BRPHF) is a cryptocurrency-based asset management company that is up 11% today. This comes as part of the recent surge in the crypto markets driving up crypto-related stocks.

Icici Bank Ltd. (NYSE: IBN), the Indian bank, is up 11% this morning after it posted a record profit in the Q2 driven by strong loan growth as consumer demand improved in India.

Arqit Quantum Inc. (Nasdaq: ARQQ) is a quantum encryption technology company that is up 10% today. There is no news underlying the move, and the stock has generally been volatile since it went public in September.

Hertz Global Holdings Inc. (OTC: HTZZ), the rental car company, climbed 9% this morning after it announced that it is ordering 100,000 Tesla vehicles for its rental fleets.

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