Digital Assets: Opportunity or False Promise?

There’s no turning back. After the exceptional sale of "5000 Days" by the American artist Beeple (aka Mike Winkelmann), which auctioned last year at Christie's for almost 70 million dollars, cryptomania has also invaded the luxury world. According to Morgan Stanley, the currently limited demand for digital products is a crucial source of revenue for luxury brands and could even generate $50 billion in additional revenue by 2030. According to the American bank's study, NFTs and gaming could be the driving force behind an over 10% expansion of luxury groups, increasing earnings by around 25%, net of taxes and interest. An undoubtedly attractive financial prospect, which adds to the basket of information already at our disposal on the opportunities of betting on non-tangible assets and the possibility of certifying the authenticity and uniqueness of a product through blockchains. Big brands are using this latter execlusivity guarantee aspect as leverage to attract new consumers who approach luxury through unconventional means such as gaming. In fact, according to a survey conducted by OnePoll for Bitpanda Italia, one category that is climbing the wish list more than any other is digital assets, in the face of growing concern among young people about their financial future. The study shows that 66% of respondents would start investing immediately in order to add extra financial income to their salary but it is mainly young people who are more inclined towards this type of investment. There are five reasons why Millennials and Gen Z would choose digital assets: the increase in the asset’s value over time; the discovery of a dynamic market; an improvement in their financial literacy; a way to give gifts without stress; and to have a key to the Metaverse. Orlando Merone, Country Manager Bitpanda Italy, explains: «25% of Bitpanda users are Gen Z, a number that indicates a veritable cultural change on the horizon. Their clear preference for digital assets, with an increasingly multi-channel approach, shows that, for many young people, this phenomenon is not something to be associated with the future since it is already part of their present.»