The past two weeks have been filled with a ton of crypto investing hype, in large part thanks to Dogecoin’s meteoric rise. The cryptocurrency itself, which received a huge boost from Tesla CEO Elon Musk’s Twitter account, has risen 12,000% since January. This turned some coin owners into millionaires – many of whom bought Dogecoin as the price hovered at $ 0.007.
All it took to see massive returns was a $ 1,000 purchase of Dogecoin at the start of the year, when it cost less than $ 0.01 per coin. A $ 1,000 purchase of Dogecoin at that price at that time is now easily worth over $ 100,000 in your bank account, despite the price fluctuations that followed Doge’s rise to internet fame.
It’s lucky buys like these or things like the GameStop stock market madness that happened earlier this year that have pushed potential and experienced investors looking for their next big investment. These trends have given way to an increase in alternative investments, with some investors throwing money into some rather curious bets.
Read on to learn more about alternative investments and how sports memorabilia and crypto art can be the next big things to soar on the moon.
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What is driving the demand for alternative investments?
According to some experts, the push for alternative investments comes from an unusual place: real estate.
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Since the start of the pandemic, seasoned and potential investors have driven up house prices across the country by taking advantage of record mortgage rates. This overwhelming demand for real estate has caused a housing crisis in almost all major markets, making it difficult to get a piece of the real estate pie.
This has sent a frenzy of potential real estate investors looking for other ways to withdraw money. And it happened at a time when alternative investments like Bitcoin and GameStop were making headlines to make a lot of people rich.
When you combine that need to invest with pandemic-induced annoyance, you end up with a recipe for a risky business. And for many people, this risk has paid off. This has led people to seek out creative and sometimes just plain weird ways to capitalize on alternative investments including sports memorabilia and crypto art.
The demand for sports memorabilia
If you’ve thrown away a bunch of your old Big League Chew collectible cards, maybe now is the time to dust them off. This is because there is a lot of money being dumped into sports memorabilia right now. The pandemic – and the mediocre return of some traditional investments – has caused demand to hit record highs for the collectible sports memorabilia market.
Need proof? Take the rookie collectible card with quarterback Tom Brady. He sold for a record $ 2.25 million in April. Or how about Mickey Mantle’s extremely rare 1952 Topps baseball card, which sold for an exorbitant price. $ 5.2 million back in january.
Tons of sports memorabilia are flying off the shelves. Much of it comes with price tags in the hundreds of thousands – and even millions in the case of baseball cards or a Babe Ruth jersey that sold for $ 5.64 million at auction.
And, interestingly, it’s not just vintage collectibles that are causing a stir. Digital sports collectibles are also booming. Take NBA Top Shot for example. It is a blockchain-based platform that allows users to buy, trade and sell basketball clips in the form of non-fungible tokens (NFTs). Business for NBA Top Shot has been booming as it has overtaken $ 200 million in sales in March – and demand has yet to slow.
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It’s clear that selling sports memorabilia, both tangible and otherwise, is hugely lucrative right now – and a prime choice for those looking to invest in alternative markets.
Massive investment in crypto art
We’ve all heard of the cryptocurrency craze thanks to Dogecoin’s unexpected rise, but cryptocurrencies aren’t the only thing investors are looking for. Crypto art has also started to make an impact across the country – and it comes at a substantial price.
NFTs aren’t just used for digital sports collectibles. They are also used in the art world to sell digital artwork – which comes with blockchain contracts claiming the artwork to be an original piece – to collectors.
What’s unique about NFT or crypto art is that it’s revolutionizing the way original art is tracked. Since the digital file is contained in the blockchain, you can sell the digital original and it will also be saved on the blockchain. If the person who bought it from you resells it, that transaction will also be noted on the blockchain.
This means that you have access to the entire transaction history for the artwork purchased and sold in the secondary market.
While NFTs featuring digital prints or illustrations have been relatively new so far, it seems like a pretty lucrative business – one that can make millions if the buyer’s good eye is captured.
It happened to a digital artist in March. Mike Winkelmann, who goes by his name Beeple, sold a non-fungible token of his piece titled “Everydays: the First 5000 Days” for $ 69.3 million – a record for digital art.
Where do alternative investments go next?
While it’s impossible to guess which alternative investment will have the next big moment, one thing is certain: Alternative investments get nowhere. Investors have recently seen huge gains in unusual places, and there are already hints of new and unique investments unfolding.
Whether it’s NFT albums, one of which was recently recovered $ 11 million for an electronic musician – or some other tech-related investment, there’s a good chance we’ll see the next Dogecoin and crypto art in the near future. What it ends up being, however, is a guess.