First Non-Correlated Asset Class in 4 Centuries

It's coming. The dawn of a new era is upon us. Technology has taken over the land and has even infiltrated our homes. The latest gadgets, the newest phones, the smart home devices that tell the weather and funny jokes to moms, dads, even children. Automated appliances, app-controlled security systems, self-driving cars, digital dating services for every demographic is available today.

What has the last decade of innovation taught us? It's taught us that everything is going digital. Everything, including our money. What's the need for paper anymore? Paper is so old fashioned. In fact, many people don't even carry cash on them anymore since a large portion of transactions happen on a Visa or MasterCard. It is so much easier to whip out a piece of plastic than it is to rifle through dirty, tattered paper.

Time to talk about assets. What is an asset? An asset, from an investment perspective, is a unit of value, tangible or intangible, that can be converted into cash. Many assets have the potential to increase in value over time such as stocks, bonds, mutual funds, and real estate. As Robert Kiyosaki says in his book, Rich Dad Poor Dad, it is of great importance to acquire assets, not liabilities. Therein lies the key to escaping the rat race and becoming financially independent.

Now, unbeknownst to the majority of the world, a new asset class has arisen. An asset class the is not correlated to any other class that currently exists. Bonds were the last non-correlated asset class to come to town back in the 1600's. We now have a new class known as digital assets. Bitcoin was the first iteration of this new asset class back in 2009, proving the power of blockchain as a viable alternative to our current payment structures.

If you were to speak with a financial adviser today, (by the way, I am not one of them) they would tell you that it is a good idea to diversify your portfolio into many different asset classes to mitigate your risk. For example, if bonds do well one year and stocks do poorly, then at least you should have either broken even or made around 3-5% gains on your investment. Non-correlated is the key phrase here as these asset classes move independently of one another.

Take a moment to view this video by the Digital Asset Investor on YouTube who is a former financial adviser with Morgan Stanley. Here he tells a compelling story about a financial planner he was talking to who was a complete skeptic on digital assets, and how he quickly turned around and became a believer. It's fascinating...

A must watch:

https://www.youtube.com/watch?v=_qPomZ74OEQ&list=PL7-hsMQKSF1c5ton26hF02F9fx_V4aBuT&index=10&t=0s

I enjoy hearing that story as it makes me bullish all over again. A wave of wealth is coming like no one has ever witnessed in history and it is happening right now before our very eyes. The digital asset market is only in it's infancy and can only go up from here. Are you prepared to ride the wave? Do your own research and come to your own conclusions. I know where my flag is planted.

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