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Blockchain & the world of Alternative Investments
Blockchain brings Fractional Ownership, Transparency, Security, Liquidity Boost, Global Reach, and Cost Efficiency to Alternative Investments.
Traditional investments are primarily Equities, Bonds, and Cash Equivalents.
In contrast, alternative investments are those outside these conventional categories.
The mind map below shows the various types of Traditional and Alternative investments.
Challenges with Alternative Investments
Primarily owned by large institutions or affluent individuals.
Complex, with limited oversight and higher risk.
Need for substantial initial investments.
Typically higher fees than mainstream investments.
Lack of consistent historical performance data.
Difficulty in quick sales (low liquidity).
Valuation challenges due to uniqueness.
Fractional Ownership: Blockchain allows for parts of an asset to be bought or sold, enhancing liquidity and enabling more investors to participate.
Transparency: All blockchain transactions are public, ensuring clear oversight.
Security: Transactions are safeguarded using advanced cryptographic methods.
Liquidity Boost: By tokenizing assets, even traditionally hard-to-sell items can be traded more easily.
Global Reach: Blockchain eliminates many barriers, granting worldwide investors access to diverse investment opportunities.
Cost Efficiency: With fewer middlemen, blockchain can decrease transaction fees.