Digital Goods As Store Of Value: Digital goods, what is the worth of something? A bicycle, building, stocks, gift card? Do you know, that evaluating what we have to ascertain its value is more art than science?
I started collecting stamps when I was a kid, it was a line of my childhood because my mom taught me so as she too collected stamps during her childhood years. It seems like if repeating history.
As I grew up, I started going to stamp collection shows to add more stamps to my collections, not on many occasions did I realize other markets that exist that pay higher than my usual market. I started the practice of buying from a cheap dealer and reselling to a higher dealer who pays more.
On my first trial, I bought a stamp of 30cents which I later sold to another stamp dealer at $35 the next day. With this first successful trade made, I saw the inefficiencies that shroud the market and I can tap into building my finance portfolio.
Looking at how COVID-19 devastated the market, reminds me of those old days. There are inefficiencies that have bewildered some markets whichever business owner must seek to uncover and take advantage of. Everything grows from small to mature. It all started as a stamp collector boy to a digital crypto asset owner. Turning your little business idea into a massive income-generating machine gives us unmeasurable joy to us as we outperform our competitors. Finding inefficiencies in a market has been inherent in me since childhood.
What Is Digital Goods?
“A store of value is any commodity or asset that would normally retain purchasing power into the future and is the function of the asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved.” – Wikipedia
As an entrepreneur, there are loopholes in the market waiting for your excavation. You have to strategize in order to identify these inefficiencies and utilize them to the best of your business. It is evident that most businesses now maintain and operate a standard online presence.
Let’s examine this scenario where all businesses go digital? What if digital products could also be a store of value? Appreciating in value as the years go? You may ask what’s a store of value? A store of value simply means something that people assign value to and are willing to pay for and hold on to with the hope of reselling them to earn more profit when sold in the future. The most widely known store of value is Gold.
Gold has enjoyed being a store of value even as it has served as a medium of exchange and currency even in our present time for certain high stake intergovernmental settlements. Gold has never been affected adversely by inflation because of its intrinsic value. And goods could be used for the manufacturing of essential commodities and jewelry.
So, when you talk of a store of value, you should think of something that appreciates in value and can be converted to cash. Something like Cards, Nickel, Stamps, and other collectibles could also serve as a store of value. The reasons why they have been characterized as stores of value is because of the ability to retain them, own them, see them, and can be evaluated in monetary terms.
Therefore, who own such collectibles could be counted as holding an investment because they will appreciate in the future and could be resold at a higher price. While in the pre-digital world, anything digital was considered as games or cinema.
Presently, something’s have transformed and disproved the beliefs of the past decades as regards digital goods. We now have digital stores of value like cryptocurrency, the blockchain, blogging, and digital book publishing which seeks to create a future steady flow of income. These and others now serve as stores of value and are worth venturing into to boost your finance capabilities.