The UK Treasury asking the Royal Mint to create a non-fungible token is the evidence you need that you should consider including the new emerging asset class into your investment portfolio.
The assessment comes from James Green, the Europe and Latin America Director of the deVere Group and follows the Chancellor of the Exchequer, Rishi Sunak, announcing that he had asked the 1,136-year-old institution to create an NFT so it could be issued this summer.
“This decision shows the forward-looking approach we are determined to take towards cryptoassets in the UK,” the Treasury said on Twitter, posting a picture of the royal coat of arms.
An NFT is a digital asset that can be an image, audio clip, or GIF and whose ownership is recorded on a tamper-proof digital ledger known as a blockchain.
Over the last year, the NFTs market has exploded, with a digital-only piece of art selling for $69 million in 2021.
Since then, an ever-growing number of celebrities and artists, and fashion, music, tech and sports brands have been creating, buying and selling tokens.
Green says, that NFTs, the hottest new asset class, are often wrongly seen as the niche domain of young, tech gurus in Silicon Valley, hipster artists, and on-trend social media influencers.
“But the decision taken by the Treasury to get a clunky, old establishment institution such as the Royal Mint involved in the digital asset space underscores how the market is much more than a niche, fad or bubble”, Green adds.
“It highlights that NFTs are on the cusp of becoming a mainstream investment opportunity and, as such, is evidence that investors should now be considering including them into their portfolios.”
“These digital assets are immutable and exchangeable, offering a store of value and potentially decent source returns. They shouldn’t be ignored by those wanting to seek to build their wealth by future-proofing their portfolios.”
Green concludes that “even the Royal Mint, an institution founded in 886 AD, knows that NFTs are coming into the mainstream. And so should investors.”
“These digital assets deserve proper consideration as a serious opportunity as they begin to reshape the investment landscape.”
BUSINESS REPORT