1. The destruction of the dollar
The value of the dollar against Bitcoin highlights the effect that decentralized currencies such as crypto have in this area. When you look at how much the dollar has devalued against Bitcoin over the past five years, it sits at 96.53%. It took 50 years for its value to fall by 50% against gold. It is because of a global debt crisis. Chief economists say printing and devaluing more of a country’s currency is the easiest way out of a debt crisis. Of the approximately 750 currencies that have existed since 1700, only about 20% remain, and those that remain have all been devalued.
Another reason is inflation. It sits at a 40-year high. Many will look to the war in Ukraine and rent hikes for answers to gross inflation, however, many others disagree. These unforeseen events happen to coincide with inflation after a record increase in printing dollars – 35% of all US dollars were printed in the last 10 months. In practice, this means that as global economies begin to reboot after the pandemic, that record amount of dollar production is now playing catch-up via inflation. This is also not a nuanced effect, nor endemic only to the United States, we see it happening in the Eurozone as well.
In fact, there is not much a country can do to fight inflation. Its main option is to print more money, which makes physical currency more expensive to store and move. This increases interest rates and reduces growth. However, if growth is weak, it pushes you towards recession. We see this economic trend playing out, with Deutsche Bank advising investors that they expect the worst recession in history to occur towards the end of 2023.
2. The era of exponentials and where to look
There are five high growth areas that many investors should look into and these are Edtech, Medtech, Greentech, Space-tech and Fintech.
Of course, these are all major areas of technology that disrupt and decentralize today’s centralized systems. The 4.0 society is evolving towards the 5.0 society, from the industrial to the impact era. Societies are divided into 1.0 – Hunter-Gatherer, 2.0 – Agrarian, 3.0 – Industrial, 4.0 – Information. The transition is initially obvious but is part of our societal and economic systems, this is what we are currently observing with big data. All of the fastest growing companies and exponential technologies are now found in this area.
When we look at this trend, what’s really interesting is how much it has grown over the past 12 months and the projections over the next decade. ARK Invest, an investment management company, has studied the exponential technology market growth. Their research shows that, by 2030, these sectors are on track to achieve $210 trillion vs $20 trillion in 2020. But as these technological fields that are experiencing this exponential growth are numerous, choosing “your wave” is crucial. One area that has interested me and which I think has beneficial benefits is the use of AI in business. As AI becomes more prevalent in the marketplace, it will improve a company’s reputation and valuation as its products become more customer-centric and drive engagement. Looking at ARK’s research in this area, they suggest this is growing from $2.5 trillion in 2021 to $87 trillion by 2030.
Personal experience of leveraging interest-specific exponentials in investments and business is usually easier to research and implement because the passion is already there. Exponentials represent many factions of a 5.0 society, and as we move into it, we all need to look to what we can personally leverage, whether that be investments or integrations of other exponentials. such as battery technology, cloud computing or blockchain, for example.
3. The digital decade
Everything we do is digitized and will encompass society 5.0; in the digital decade, this will mean a digital overlay on your everyday experience. Foresight and action have helped me as an entrepreneur stay ahead of this curve and pushed my interests in this area. We are now considering partnering with high-level partners for our “Metaversity”, which creates digital campuses for Edtech.
When we look at the history of the web, we break it down into Web 1.0: accessible content was read-only, Web 2.0: the emergence of blogs and social media, the public was able to create content, Internet 3.0: what we’re moving towards – allows users to have ownership. For example, music used to be incredibly difficult for artists to monetize, but through NFTs we are now seeing that being challenged.
The merging of our digital and physical lives will focus on social spaces (what you build to interact with), digital objects (NFTs) and wallets and identity – people will need to know that you are real and that they can pass something to you, i.e., assets through block chain or currency.
What this means in terms of investing is that it will change the paradigm. In the integration of Web 3.0, we have to start asking ourselves not only what do we want to invest in, but also in which social group or in which economy do we want to invest? Right now, we were born into a nation with its own economy, so your assets and your finances are by default, intrinsically linked. This is an extremely important aspect, because Web 3.0 will cancel citizenship and structured economies. Your wealth will not be tied to your physical citizenship, but to your digital citizenship. This means in practice that wealth will no longer be tied to a location, but to a purpose. Everyone will have the opportunity to build an economy around their individual goal.
The Global Impact Investor Summit 2022 hosted on the edtech platform GenuisU, saw keynote speakers Roger James Hamilton, Founder and CEO of Genius Group, World Renowned Investor Jim Rogers, Marcus de Maria, Founder and Chairman of Investment Mastery, Simon Zutshi, Founder of Real Estate Investor Network (pin) , and Mark Robinson, founder of the International Academy of Wealth, share their top 10 investing trends for 2022-2023. Roger James Hamilton, Founder and CEO of Genius Group, presented his detailed analysis and the entire summit can be viewed on line.
About the Author: Roger James Hamilton is a New York Times bestselling author and founder and CEO of Engineering Groupa multi-million dollar group of companies, headquartered in Singapore, which currently includes companies such as GeniusU, Entrepreneurs Institute, Entrepreneur Resorts and Genius School and has an acquisition plan to add 5 more companies in 2022 to the group .