Being informed about the potential digital goods have for the future should have made you become a hopeful investor in the Blockchain industry today. In one of my articles on digital goods as a store of value, I introduced digital goods as a store value. Here, am going to educate you on how digital goods are stores of value. First, What are digital goods?
This is anything that could be generated, saved as a file, transferred through digital means, and also have a value attached to it. May I let you know that a digital good could be seen as a part of a Smart Contract? A smart contract is powerful with its use of ‘if this then that’ rules which allow some maximum level of control of digital goods, which in turn defines its availability or scarcity, what happens when it’s sold or ownership is transferred.
Digital goods include so many things you may not believe!
Due to the method of its storage, maintenance, and the intelligence in which digital goods are developed, they’re in a decentralized manner via blockchain, with no one in charge of the transaction, and the ability of each miner to individually confirm the transaction, Blockchain driven assets have evolved to become stores of value.
The digital store of value have also erupted in different angles like the cryptocurrencies which some are optionally used as payment means like Bitcoin, Ethereum, etc, while others serve as token created to support DEFI and other derivatives of Crypto Assets. These crypto assets are all stores of value as we have witnessed since their creation, the rise and fall of their value which is also of the same physical store of value.
Even as cryptocurrencies have proven to be stored in a value, many still do not see any meaning to investing in cryptocurrencies let alone this period Bitcoin and other cryptos have nosedived. Cryptocurrencies can also be used SME financing in proven ways. To them, cryptocurrency is a digital representation of nothing tangible.
In the past, our professors and economist educated us that anything ‘tangible’ is recognized as having value. As it was widely taught in colleges, anything that we can see, touch, and move is said to have value. And this narrative has had immense damage to our folks who have failed to get rid of it. And tend to classify digital goods as nonpotential stuff to invest in.
Surprisingly, these sets of people buy audio CDs to play and listen to at home. While some of them are movie producers and expect people to buy their digital goods. What a paradox? This generation has known that smart contracts and digital goods are reflecting the real store of value, and have held this belief dearly and invested in them.
If not for the long period I served as a stamp collector, I wouldn’t have believed this idea, but, because of my exposure then, I believed it and have taken part in its goodies by investing in them.
As it has always been with the collection of stamps or cards, I was bothered with getting them graded, storing, and protecting them from damage so as to retain their value. This is because I value them and they reflect how much I can make at any given time when I sell them. Since stamp selling is usually person to person, it also involves different risks and costs to getting the high-cost stamp dealer who will price it higher.
But, with digital trading on crypto exchanger or NBA TopShot, it’s usually fun and less risky compared to carrying your stamp from one place to another in search of a dealer with a higher bid. In digital trading, none of those risks exists and their values are also dictated by the same law of supply and demand.
As I troop in to invest in digital assets, I realized NBA TopShot offers a market where I can sell my cards digitally also. As their site was created on Flow Blockchain, enables me to see every card being offered and their serial numbers, their prices, and lots more which I couldn’t have seen when I was practicing the traditional method of selling my cards.
Haven learned about this digital system of selling my cards and owning digital goods such as cryptocurrencies, it has really shaped my income and increased my standard of living.