Imagine the following scenario. You log into this immersive new app to collect, buy, sell, track, swap, and lend unique real-world objects. You are an avid collector of watches and created your channel in the app. Channels are like repositories for things you own - physical and virtual items are showing up in the form of NFTs. The channel itself will be minted, and owning one is a big deal. You can invite others that share your interest in vintage pocket watches. Every new member means that you make more revenue as the channel owner. These channels are like exclusive groups. Instead of storing shares of companies, you collect slices - fractions - or whole parts of things like raribles, art, real estate, automotive, bikes, yachts, comic books, and wine collections.
Your portfolio of collections includes a slice of a 1926 Macallan Scotch Whiskey bottle stored and owned by a collector in Baltimore. You could never afford the whole bottle, but through Bitsliced, you were able to buy a 1% stake. Your portfolio is composed of slices of painting from an unknown new artist. You own 1/100th of a Patek Phillipe watch from an owner in Sydney, a small stake in a property in Dubai, and naturally, all the minted NFTs of your physical items: your motorbike, your car, and your apartment.
All these investments are growing at different rates, and as your holdings increase in value, other collectors, community members, and investors join your channel to share information. It is fun to add fractions of more items and search for other exciting objects worldwide, which will become like a game! The possibilities are endless, and through the creative minting process, you can trust that all your assets are tangible, exist, are not counterfeits, and regularly appraise in value, which is easy to assess through the app statistics.
Other members of the growing community are constantly updating prices, adding more items, and exchanging information, which has become the “stock market” of objects. The company that created the app is coming out with a more advanced version of its platform. Next year, you will be able to move all these virtual items into a metaverse.
Then you can interact with your collections at a whole new level! Virtual car dealerships show you cars that are physically in different geographic locations. You can experience them through virtual reality and decide to add another slice to one of your channels that represent collections.
Bitsliced is in its current state, a good starting point. Not all elements are set in place today. We have started to create some of the features mentioned in our vision, but not all of them are currently feasible. Sometimes this is because of technical reasons and sometimes due to financial constraints, but we believe that Bitsliced is eventually paving the way to reach the vision described above. We wanted to share the full - albeit somewhat idealistic - vision with the community so that you know where this journey leads.
Blockchain technology and other developments have opened the door to creating fractionalized ownership of anything! We can now own “pieces” of things represented through a digital representation on the blockchain, which is the foundation to unlock assets that weren’t tradable until now. This technology will make anything publicly tradable - every car, every painting, and small business like a barbershop or a restaurant. People could take a direct stake in an industry that exists across the globe.
There are already cases of fractionalized ownership. The 2020 Kentucky Derby winner is a three-year-old pure breed called “Authentic,” which is owned by 4,200 owners that bought a micro-share of US$ 206. Only uber-wealthy individuals could afford a pure breed a couple of years ago. Fractionalized ownership opens investment opportunities to investors who were left out of certain asset classes until now.
Opening privately held assets to a global public will create the most significant trading opportunity and wealth creation in over 400 years of financial history! The value of rare whisky has increased 582% since 2009 and is one of the most stable asset classes - surpassing rare collectible vintage cars. Private collectors have sold over £40m worth of rare whisky at auctions in 2018 alone. Have a look at a few examples.
The secondary market (collectors) for luxury watches sits at $20bn per year (2020). The global classic car market will reach $36bn in 2022 alone. We could go on with art, luxury fashion items, fountain pens, wine, and real estate! In combination, privately held assets are estimated to be around $2.1 Quadrillion!
The foundation for this is not only of technical nature. This level of trade will require trust and transparency.