What I’m Beyond Excited About
A few months ago, I wrote about a deep dive I was taking into the new world of NFTs. It came with a promise that I’d keep you updated because I think this technology will change the way we live nearly on the level of going from no internet to internet.
This is a 0 to 1 change that will transform everything.
It isn’t about “owning” some kitschy internet jpeg file like many of the media stories would have you believe, it’s about scarcity, ownership and insider access communities across nearly every aspect of life both online and offline.
At first, I thought this was limited to ownership of digital items, but it’s so much more than that. Embedded in this Travel & Leisure article on “How Cryptocurrency NFTs Could Change the Way We Travel” was a simple but transformative use case:
“Restaurants are also exploring the technology. Quality Eats, which has two locations in New York City, created an NFT-backed cocktail this spring called Into the Ether. In March an anonymous buyer, Opensea username 7AA335, purchased the drink’s secret recipe as well as the rights to a free round on every visit for .75 Ether, or about $2,000. The exclusive cocktail may be a bellwether for more innovation to come, Prof. Dustin York says: “Really just about anything can be made into an NFT.”
On the listing for Into the Ether on Opensea.io the ownership rights include:
- Ownership of the exclusive blockchain-protected secret recipe to Into the Ether, the NFT Cocktail
- The ability to redeem one free mixed Into the Ether cocktail per visit to any current (West Village, Upper East Side) or future Quality Eats location. Redemption good for the life of the restaurants
- The ability to resell/trade the NFT Cocktail asset and its rights on the NFT marketplace
Every restaurant could do this! Think about the customer loyalty and a great way to get people into the restaurant.
I speculate that future versions of this idea could include royalties where every time someone purchases one of these drinks in the restaurant, the owner of the NFT gets a small royalty of let’s say $0.05.
So, by buying the NFT you’re buying into the future of that business, and in essence you’re creating your own income stream.
Or, as I posted on my new Twitter account, imagine a scenario of insider access where McDonald’s sells a limited numbered series of insider access NFTs that allows only those people the ability to purchase the cult-classic McRib Sandwich. Or similar to the restaurant discussed above, the person holding that NFT can get one free McRib sandwich every time they enter a McDonald’s.
And there’s a secondary market for all these NFTs where, unlike most items in the world, the original creator can write into the contract that they get a percentage cut of each subsequent sale.
Imagine a Van Gogh painting that would have sold for the equivalent of a few dollars in the late 1800s with Van Gogh and his estate never seeing another cent for it when sold in the future. If the contract for that art was built where every future sale gave 10% to Van Gogh’s estate, the original creator would retain huge value and would be incentivized to keep producing things of value.
I could go on and on with other thought experiments I’ve run through, but this is getting a bit wordy for a newsletter so I will follow up in the future as I uncover more.
Ultimate Guide to Debt
Our ChooseFI website team just produced another excellent “ultimate guide” article, this time on all things debt related, including an excellent analysis of the 3 different payoff methods: Debt Snowball, Debt Avalanche and the Hybrid method.
If you’re looking for some strategies for tackling your debt check out “Debt 101: The Ultimate Guide to Debt.”
“The great paradox of this remarkable age is that the more complex the world around us becomes, the more simplicity we must seek in order to realize our financial goals…Simplicity, indeed, is the master key to financial success.”
–Jack Bogle – founder, The Vanguard Group
ChooseFI Community Taking Action This Week
- Brad said, “This week, my 1% better was getting to $100k Net Worth. I still have student loans and a mortgage, but I went from $0 net worth to $100k net worth in 1.5 years, after starting at negative $150k five years ago. It feels amazing! I am also maxing out my 401k and IRA for the first time this year, and have finally saved up enough for a 3-month emergency fund, so I am slowly starting to funnel money into my taxable account. Not all of this is this week, but the culmination of these actions is adding up quickly and I can really see the results!”
- Bria said, “I am new to the FI movement and started listening to ChooseFI podcasts and I am taking the FI 101 course (thanks for making that for newbies like me). My 1% better this week has been signing up for a library card. I’m doing a no spend month challenge and have been looking for ways to still enjoy what I value without spending money. I enjoy reading and the library seemed like the perfect solution to my weekly Barnes and Noble/ Amazon book shopping spree. I forgot how much you get with a library membership and it’s all at no cost. I am even considering signing up for a documentary streaming service called, Kanopy, that is free with a library card, and cancelling my other streaming subscriptions. Thank you and the whole ChooseFI team for fostering this community and providing great resources.”
- Dylan said, “My 1% better is my wife and I just hit our $100k mark in our investment accounts. We found the FIRE community last year after I lost my job last year. We were able to drastically cut our expenses and increase our investments to get to this point. Also, I just received the Chase Sapphire Preferred bonus this week as well which will allow my family and I to take a vacation in the fall. All in all, it has been an accomplishment filled week!”
- Mayeska said, “I’m only 22 and I finally opened my Roth IRA and put it all into VTSAX! I also opened my Roth 401k with an employer match. Super excited to watch my money grow and continue to learn more!!!”
- Jason said, “My 1% better is recently starting a new job in which I doubled my base salary! I listen to your podcast while running, biking, or mowing the lawn and taking action is at the core of your message. I recently re-listened to episode 211 with the Financial Mechanic on negotiating a higher salary and took action with a new employer. I also get to work from home now on a permanent basis so no more commuting! This podcast has given me the confidence to pursue larger goals by taking action and having my finances in a good place so I have more options with my time. Thank you for inspiring me and giving me the blueprint to live my best life!”
- Suzy said, “My 1% better is smashing our first half of the year goals by saving $62k (goal was $50k) which includes husband and my 401ks, matches, principle of our primary and rental house, Roth IRAs and additional taxable investment savings.”