Fractional Ownership: The Future of Luxury Asset Investment
Financial market unrest in recent years has caused investors to lose confidence in investments previously thought to be safe. Both traditional financial markets and, for example, the cryptocurrency market have experienced huge drops. In this situation, more and more investors are looking for safe investments that will allow them to make a profit in the long term, while also being resistant to the rapidly changing situation in the world.
The recipe of the wealthy people
People with considerable wealth have long understood that luxury goods can be a great investment and are increasingly popular as a way to diversify their investment portfolio. Expensive cars, high-end watches or artworks are not only bought to show status and improve the comfort of life, but also to count on steady growth over the years, as they are often seen as sound investments that can increase in value over time. Moreover, they can provide a hedge against inflation, as they often retain their value better than other traditional investments such as stocks and bonds.
However the luxury watch market is still reserved for the wealthiest, with high entry barriers that make it impossible for the average person to invest. Not everyone can afford to buy a new Audemars Piguet watch for €300,000…
Luxury investments for everyone
Fractional ownership is an innovative way for individuals to invest in luxury assets without having to purchase the entire thing. This approach provides a more affordable entry point for investors compared to traditional ownership methods, and allows them to share the asset with a larger pool of investors. Moreover, it enables the appreciation of the asset to be shared, giving all investors the opportunity to benefit from its increased value over time. This makes fractional ownership an attractive option for those seeking a more accessible and cost-effective way to invest in luxury items.
Benefits for crypto investors
- Access to investing in the luxury market with no entry price
Thanks to fractional ownership, crypto investors can enter the luxury asset market with a much smaller entry cost. This opens up the possibility of investing in items such as high-end watches, cars, and artwork at a fraction of the price, while also getting a share of the potential appreciation of the asset. - Additional liquidity to the luxury market
Tokens linked to the asset can easily be traded on NFT marketplaces. If you need to sell your share, just list it on one of them. Furthermore, the lowered entry barrier means more people are likely to invest in luxury assets. - A well-diversified portfolio with the new asset class
Instead of putting all their eggs in one basket, a crypto investor can diversify their portfolio by investing in a different asset class, such as cryptocurrency or NFTs, using the same methods. - Possibility to utilize tokens as loan collateral in DeFi protocols
The token has real value and lower volatility than cryptocurrencies, making it suitable for use as collateral in lending protocols. This provides new opportunity to increase liquidity. - Governance allows participation in key decisions
Token holders can collectively make important decisions, such as an early sale of the asset due to a high market valuation.
Pieces.market provides crypto investors with the ability to invest in fractionalized assets using familiar methods. Our marketplace allows them to invest in the luxury market with just a few hundred USDT in their favourite crypto wallet.
Remember that this article is not a financial advice.
About pieces.market
On pieces.market, you will be able to diversify your investment portfolio with fractionalized luxury assets that have performed well in the last decades and have good prospects for the future.
We believe that with assets sovereignty and digitalization coming to Web3, investing in high-class luxury assets should be easy and available for everyone.
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