Understand what you buy

By Dale Gillham. Published at May 7, 2021, in Investor 101

As the world becomes more familiar with blockchain and cryptocurrencies, the opportunities that this new age technology presents keeps expanding at a rapid pace.

In March, Twitter founder Jack Dorsey sold the very first tweet as a non-fungible token (NFT) for $2.9 million. To put it in simple terms, an NFT is a unit of data stored on a digital ledger (known as blockchain), which certifies that digital asset as unique.

Excuse my ignorance, but I am not sure why anyone would want to buy a tweet as an investment, let alone pay nearly $3 million for it. I guess we will all find out in due course if the investment was worth it.

According to news.com.au, blockchain works by creating an open record of transactions that is nearly impossible to alter.

Rather than storing data in a database, the data fills up “blocks” which are then linked to previous blocks that are all chained together. In other words, as new data becomes available, it is entered into a fresh block and once that block is filled, it is chained to the previous block in chronological order. Each block is valued equally and essentially an original one-off digital record that is authenticated using blockchain technology.

NFTs are purchased using cryptocurrencies and, so far, NFTs collectibles (as they are known) range from digital paintings to artwork, music, games, films and even sports memorabilia.

While collectibles can be a good investment, regardless of whether they are owned in their physical capacity or digitally, only one person can own an NFT of the original item.

It is possible that we will see an explosion in the sale of digital collectibles via blockchain in the coming years, as we all become more familiar with this technology. That said, I would recommend those who own collectibles and who may be thinking of using this technology to do their research to fully understand what they are buying and its true value.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!