CryptoPunk #5822 is a piece of collectible digital artwork (not pictured).* It is a pixelated human head with a bluish hue, and either blue hair, or a blue bandanna, it’s difficult to tell which. In February 2023 it sold through an online marketplace for over $23 million. Before you think that must be a typo, trust me, it’s not—and it’s not even the most expensive Non-Fungible Token (NFT) to sell. That prize goes to a piece of digital artwork called The Merge, and it sold for a whopping $91 million.
NFTs like CryptoPunk #5822 and The Merge are the products of the world of cryptocurrency. And the marketplace for expensive pieces of collectible digital art is dominated by people who have made fortunes in that industry, often as early investors, or as executives who have created and developed the technology. By all accounts, this group of highly technical executives/developers/investors is relatively small, and when I hear stories like this—a piece of digital artwork selling for millions of dollars—I wonder if these people are spending a bit too much time buried in their work.
It’s easy to judge that which we do not understand. I don’t understand NFTs. But I can appreciate that other people who understand that market better than I do, see value and opportunity where I don’t. I can look at the digitized head of a monkey selling on an NFT exchange for thousands of dollars and think, “why bother?” But in the same way, I can spend hours studying a company to determine if it’s a good investment, and someone else might ask me the same question.
We all have our areas of expertise. Each of us tries to create or deliver value in our own unique ways. My guess is the blockchain developer working in the world of cryptocurrency and NFTs would say their work is important. Perhaps it is. I can’t say for sure. But I can say with certainty that even though we might occasionally dig too far into the minutia of an investment, focusing on details that may not always be of much consequence, the work we do is very important because it brings value to our clients.
The good news is you don’t have to worry about the investment details. That’s what we’re here for. We pay attention to the Fed, interest rates, the economy, election cycles, the markets and all the individual companies we own, so you don’t have to. That also means that especially this week, as we look ahead to Easter weekend, you can focus on the things that matter most—faith, family and community.
Blessings to you this Easter, and in the weeks ahead.
~ Travis Raish, CFA
* NFTs are privately owned so we didn’t post images, but if you’d like to see what tens of millions of dollars can buy in the world of digital art, search for them online.