$69m in Digital Art to Start
I'm an avid reader. I read 20 to 30 books a year, at least. But now I plan to reread the same 5-6 good books and only add a handful of new books each year. Bringing my countdown to 10-12 per year.
It's an experiment but I value quality over quantity.
Digital products have real value
But several years ago I started only buying digital books. I used to have a library with hundreds of books but gave them away. It made no sense to carry physical books anymore. Especially when I write so many notes.
So that’s when I realized the value of digital products. You see, content is easy to think about on the internet. It has matured in many ways - from movies to books to software. But other products aren't there yet. Not yet at least.
The Digital World you don’t know about
There’s a lot of talk of Bitcoin and Blockchain. It’s hot and popular. But have you heard of anybody speak of the use cases? Unlikely. I read the news quite often and have known of Bitcoin since 2010. But I've yet to see a strong use case.
So where is all the excitement coming from?
An alternate universe. The digital universe.
If you haven't dabbled in the digital world, you're missing out on +50% of the world’s daily activities. Sounds crazy, right? Well let’s use a real world example.
Last week Roblox IPO’d and peaked at $38 billion. The average Roblox user’s age is 9 to 15 years old. And the company did $920 million in digital sales last year. Read that again. $920 million. That’s not one McDonald’s Happy Meal. That’s all of them.
If you didn’t think the internet was a big deal in the 90s, then you may miss out on the next big tech boom.
Now for NFTs
Non-fungible tokens. I wont go into the technical details but NFTs are unique identifiers built on the blockchain. Ethereum to be exact.
Why does it matter? In one minute, I’ll give you 69 million reasons why it matters.
You see, NFTs have found a use case in digital art. In the past, artists would have difficulty collecting royalties on original works (songs, paintings, etc). Not anymore. NFTs can be used to identify unique pieces of art (like the original Mona Lisa).
But why does this matter, Vijar...
Well in the digital world, value is subjective. If you were living in virtual reality, you couldn’t bring your Mona Lisa with you. Or even my terrible hand drawings. But the potential with digital art is limitless.
Crazy, right? Well augmented reality is here to stay. If you don’t believe it, either get with it or get left behind.
Crowdfunding raises the roof
On Monday, Regulation CF for crowdfunding increased its fundraising limits from $1m to $5m. This was a big move in the world of startup investing. Now non-accredited investors can get behind big ideas for small businesses.
Remember that time you were excluded from the last ‘unicorn’ investment? Well, not anymore..
And one notable creator used this new regulation on Monday. His name is Sahil Lavingia.
Gumroad raises $5m in 24 hours
In 2011, Sahil built Gumroad in one weekend. Before Gumroad, he was the #2 employee at Pinterest. But this week he raised $5m. Online. In 24 hours. From 8,600 investors.
This is a new trend. Equity crowdfunding is picking up steam. And now that non-accredited investors can get behind small businesses, I suspect more momentum will get behind this.
Crowdfunding has been around for a decade. We've all seen Kickstarter like campaigns raise six figures in the past.
But the reality is most campaigns fail to reach their funding goal. But now social media gives you access to millions of people. And Sahil who has +200,000 followers and Beeple with 2m followers have capitalized on this.
This month Beeple raised $69m with his first NFT. Sahil raised $5m for his first startup.
This is the digital future and it’s only getting started.