FUTURE-PROOF YOUR PORTFOLIO: BUILDING A TRI-LEVEL DEFENSE AGAINST MARKET CHAOS

As an investor, your money is your life, it's what allows you to continue in this race to success and growth, so even though the title of an investor has risk embedded in its DNA, it's something that many are terrified of. Bankruptcy, U.S. Economic reset, Nuclear wars, Inflation,… they are all headaches that we are trying to avoid left and right, up and down. But as we all have learned, diversification is the safe safety net that can help us navigate anything coming along the way. Are you looking to make informed decisions in a changing economic landscape? This article helps bridge familiar investment concepts with newer ideas, for people looking to diversify their portfolio in a thoughtful, structured way. It will be appealing to investors interested in both traditional stability and innovative opportunities.
CONTEXT
With current economic uncertainties—global inflation rates, market volatility, geopolitical tensions, etc. The necessity of a diversified portfolio becomes obvious. But how do you know if your portfolio is diversified enough? What entitles it as a resilient portfolio? The answer is currency-neutral assets. The more of these you have the less you will be impacted by disruptions, which by the way are normal, many and unpredictable.

it is well known to every good investor that putting money in the bank today is a sure way to lose your purchasing power. But today, I challenge you to suggest alternatives and to justify them to us minimally. Here it is the challenge:

If you had to propose 3 currency-neutral assets for me to invest in, that can be immune to the upcoming crisis related to the de-dollarization, U.S. bank failure, recession, and rumors of war, what would it be? We all already know about real estate and art, but are there other options?

In this article, we are going to revise at least five traditional assets and three additional new assets that you might not be aware of but could help you achieve your long-term financial targets. [by the way… This is opinion, not financial advice]

TRADITIONAL DIVERSIFICATION (LEVEL 1):
This section is the ABC for investors but it's always good to crosscheck and review some basic definitions, so we are sure about the foundations of diversification while investing. Dealing with traditional assets -which we will call “level 1 assets”- it's quite simple; We are trying to incorporate in our portfolio fences against inflation and currency fluctuations. Those fences are provided with currency-neutral assets. An asset is considered "currency neutral" when its value is not directly affected by fluctuations in currency exchange rates. This characteristic is valuable, especially in uncertain economic times like the ones we are living in now, for several reasons:

·       They contribute to Stability as their value does not swing with currency market volatility, which is particularly important when currencies are unstable due to economic crises or geopolitical events.
·       They Preserve your Capital since their value is not directly tied to the weakening currency, they can help preserve the purchasing power. By holding assets that are not tied to the performance of a single currency, investors can spread their risk across different markets and economic conditions.
·       They offer Global Investment Opportunities without being exposed to the risk of currency exchange rate losses.

I you were not convinced so far, I hope you are now certain about why “currency-neutral” assets are valuable in uncertain times. Being on the verge of the fall of this Western Empire, you do not want to risk your hard-earned investments. In the face of economic uncertainty and potential crises, diversifying into currency-neutral assets can be a prudent strategy. The following are the five more common traditional assets that wise investors try to incorporate into their portfolio (which are the most frequent and easily found in trendy YouTube channels):

1.   Real Estate: By investing in real estate markets across different countries, investors can spread their currency risk. This way, a decline in one currency may be offset by the stability or rise of another.
2.    Art Investing: The art market is often considered independent of the stock market and can be "currency neutral." This means that the value of art can remain stable or even appreciate when traditional investments or currencies are losing value.
3.   Precious Metals: Gold and silver have traditionally been seen as safe-haven assets during times of economic turmoil. They are tangible assets that have intrinsic value and are not tied to any particular currency's performance.
4.   Cryptocurrencies: Some cryptocurrencies, like Bitcoin, are designed to be decentralized and operate independently of traditional banking systems. They can serve as a hedge against currency devaluation, although they come with their own set of risks due to market volatility.
5.  Essential Commodities: Investing in essential commodities like agricultural products, energy, or even water can be a way to hedge against economic crises. These are resources that people need regardless of economic conditions, which can provide a level of stability.

Challenges of Level 1 Assets:
“Perfect! if I add these traditional assets to my Portfolio, I will be sure to be shielded against any eventuality, right?” If you are a serious investor, you’d know that this affirmation is further from the truth. It's important to conduct thorough research and consider the risks associated with any investment, especially in the context of a potentially volatile economic environment. All these five assets listed above come with challenges and barriers that should be considered. Let us see carefully. These are not all, but they are the most significant:

1. Real Estate - The Money Pit Chronicles; hard to get in and hard to get out [High Entry Costs and Lack of Liquidity]: The significant capital required to invest in real estate can be a barrier for many investors, and to top it off, real estate investments are not easily sold or converted to cash without a significant time investment.
2. Art Investing - The Tricky Art of Valuing Valuables and Safe-boxing articles [Valuation Difficulties, Maintenance and Insurance]: Art is subjective, and its value can be hard to determine, making investment decisions challenging. And where do you put it? Art requires proper maintenance and insurance to protect against damage or theft, adding to the cost.
3. Precious Metals - A shiny thing? Here comes the boogey(tax)man [Tax and Liquidity Risks]: Precious metals are often classified as "collectibles" by tax authorities, which can lead to higher capital gains taxes. And not only that, physical precious metals are not as liquid as other investments, meaning they can take time to sell and convert to cash.
4. Cryptocurrencies - Welcome to the digital wild west; buckle up for regulatory loops and security drops [Regulatory Uncertainty and Security Risks]: The lack of clear regulations can make it difficult for investors to understand their legal obligations and the risks involved. Furthermore, the potential for hacks and fraud in the cryptocurrency space can be a significant barrier for investors, since white-collar thieves have become lazy and work from home now. If you don't take the proper precautions with your digital wallet, you can be an easy target.
5. Essential Commodities - Ready to ride the highs, and brace for the lows? This is like playing 3D chess with Mother Nature and global markets [Market Volatility and Complexity of Trade]: Prices for commodities can be highly volatile, influenced by factors like weather, political instability, and global demand, and besides, where do you even start? Trading commodities often requires understanding futures contracts and other complex financial instruments.

These barriers can make it difficult for the average investor to enter and navigate these markets, often requiring additional knowledge, resources, or risk tolerance. However, with the right approach and understanding, these barriers can be mitigated to some extent. I you have incorporated one of these assets into your portfolio you have upgraded it to level 1. Congrats!

THE METAVERSE ADVANTAGE (LEVEL 2):
This is a new era. In a world driven by global uncertainties, the metaverse emerges as a virtual sanctuary. The tremendous rise of this Web 3.0 technology has created new opportunities for virtual real estate investing. Tech-savvy investors are seeing the potential for capital appreciation, artistic expression, and social participation in the booming metaverse property market. Virtual real estate platforms such as Decentraland, Cryptovoxels, The Sandbox, and Somnium Space (the Big Four) provide investors with a variety of ways to participate in this expanding sector.

The same way Web1 allow us to have our own email, and Web2 allow us to have our social media profile as our home bases, in the Web3 era, personal property in the form of virtual real estate will be what everyone will fight for to preserve. Creators can monetize their content shown at their virtual property by charging for access or trading their digital creations. Brands can use their immersive properties to advertise services, organize virtual product launches, and provide unique customer experiences. Just like right now we would freak out if our email account is no longer available or if our IG profile has been restricted or banned (and the implications that this action has for many in their real life), the time will come when your avatar and your virtual home/business/complex will entail so much that people will do anything to preserve, improve and safeguard those digital assets at any necessary cost… but as always, the early birds are the ones eating the warm. This is why the sooner the better, but we shall assess and take an informed decision, so we do not find ourselves, in the middle of nowhere in the vast digital universe waiting for someone to knock our door so our property investment stops losing its value.

Investing in virtual real estate and digital art within the metaverse does offer unique advantages, and they have the potential to become currency-neutral valuable assets. Here are some key benefits of what we have labeled as “level 2 assets”:

A. Global Market Access: Virtual real estate and digital art in the metaverse are not bound by geographical limitations, allowing investors to reach a global audience and market. Unlike art investing, you don't have to travel all over the planet in search of the unique piece. From the comfort of your home, via the metaverse, you can access and visualize art pieces from all around the world. And not only that, virtual real estate and digital art assets offer lower overhead and maintenance costs.

B. High Liquidity: Digital assets can often be sold more quickly than physical assets, providing higher liquidity. This is facilitated by the various online platforms that support the buying and selling of these assets. Have you ever experienced the troubles and impediments banks and other institution lie on your way when you decide to withdraw your investment? And what about a crowdfunding campaign, when after a period of time, you are expecting your returns, but dividends take longer than you can wait so you decide to step out, but you cannot exchange your stake with another person that is willing to continue the investment? Web 3.0 technology is here to come to your rescue. Those will no longer be excuses for you to navigate at liberty and manage your investment portfolio at your free will.

C. Innovation and Creativity: The metaverse allows for creative freedom in developing virtual spaces and digital art, which can lead to unique investment opportunities that are not possible in the physical world. With the 3D Internet, auctions, awards shows and competitions, galleries and workshop studios are all available for creators and artists to level up their game. Investors as well can make a conscious decision before investing by attending interacting and exchanging in these virtual worlds. Trust has become the new currency, and the Metaverse, and all the technologies involved, can help building it.

These assets can act as a fence against traditional economic fluctuations because their value is not directly tied to any single currency or national economy. However, it's important to note that while they offer diversification, they also come with their own set of risks, such as market volatility and regulatory uncertainty. Investors should carefully consider these factors and conduct thorough research before investing. Let us explore some of them.

Challenges in Metaverse Investments:
The majority of metaverse real estate is owned by the Big Four: Decentraland, Sandbox, Somnium Space, and Cryptovoxels. However, two are the main problems for those who are not accustomed to this emerging technology: (i) these virtual worlds are designed for video gamers and (ii) the empty plots they offer as investment assets are always subject to speculation.

Millennials are not used to video game platforms and navigating through these worlds can be uphill and unattractive for them. On the other hand, offering only virtual plots without the necessary infrastructure limits the type of audience that can invest in these platforms (fostering the speculation), since the next required step is to hire the services of a professional to create/design the necessary infrastructure.

Investing in Metaverse platforms like the Big4 presents several challenges that potential investors are already discussing:

·     Volatility and Speculative Nature: The value of virtual real estate can be highly volatile, with prices driven by speculation rather than fundamental value.
·     Liquidity Concerns: Unlike traditional real estate, the market for virtual land is less liquid, which can make it difficult to sell assets quickly or at a desired price.
·      Technical Barriers: Understanding the blockchain technology and smart contracts that underpin these platforms can be a barrier for some investors. Investors need to have a certain level of technical knowledge and skills to navigate the platforms where virtual real estate is traded.
·      Platform Dependency: The value of investments is tied to the success and longevity of the platform itself, which is not guaranteed.
·      User Adoption: The long-term value of these platforms depends on sustained user adoption and engagement.
·      Technological Advancements: Rapid changes in technology could make current platforms obsolete, affecting the value of investments I the platform is not committed to integrate those advancements at the appropriate pace.

These challenges highlight the need for thorough research and a cautious approach when considering investments in the Metaverse's virtual real estate. It's important to stay informed about the latest developments and trends within each platform and the broader Metaverse ecosystem.

OK, now that we have covered level 2 assets, let's find out what makes Harlem Genesis digital assets entitled to “Level 3 currency-neutral assets”.

HARLEM GENESIS PREMIUM ADVANTAGES (LEVEL 3):
If we already have 4 metaverse platforms operational and functioning, why create a totally different platform? -this is a question I get from some investors who are skeptical about building another platform solely dedicated to Black entrepreneurs. The answer I always give is “we all know if it's for everybody it's not for us; if it's for all, it's for everyone but us”. We have been tricked so many times in the past that we are not falling into the same trap anymore. We need something made by us for us. If it's made for us, we need to solve the impediments that are hampering our involvement into this market. How many of those 50,000 crypto wallets involved currently in the $1.2 billion virtual real estate current market belong to Black investors? Exactly! Let us explore how Harlem Genesis constitutes a state-of-art asset within this market.

Harlem Genesis offers a unique and competitive alternative in the Virtual Real Estate market. These are some but not all the advantages identified for investors to consider:

  1. User-Friendly Experience: Harlem Genesis prioritizes accessibility, ensuring that individuals who are not gaming or tech-savvy can navigate and use the platform with ease. The design aims to lower the entry barrier, making the Metaverse accessible to a broader demographic, particularly those who may be intimidated by video game-like interfaces. Our platform will neither be cartoonish-like, nor a User-Generated-content (UGC)-voxel platform. If you have never played or created in those type of platforms do not worry, we will do the creation, building and designing for you.
  2. Turnkey Virtual Properties: Unlike platforms offering just virtual plots, Harlem Genesis provides ready-to-use infrastructure, eliminating the need for additional investment in development and design and making it a one-stop solution for investors and businesses. Harlem Genesis blends art pieces with real estate; each building it's a unique art piece mint as an NFT, which can be appreciated in time, rented and so on, like any other asset.
  3. Equitable Appreciation Strategy: By employing their unique urban planning approach, Harlem Genesis ensures that all properties have an equal chance of appreciating, removing the speculation and unpredictability inherent in other platforms.
  4. Cost-Effective Investment: Offering fully developed commercial spaces at a fraction of the cost compared to average virtual plot prices in other Metaverses, Harlem Genesis presents an attractive price point for investors.
  5. Rent-to-Own Model: This innovative approach allows individuals to gradually invest in property, making the platform financially accessible to those who cannot afford upfront costs, thus widening the investor base.
  6. Mimicking Real-Life Urban Dynamics: Harlem Genesis closely replicates the mixed-use character of real-world cities, fostering organic interactions and economic growth, in contrast to the compartmentalized districts found in some Metaverses.
  7. Intuitive Addressing System: Simplifying the identification of virtual properties with an addressing system akin to real-world postal addresses, Harlem Genesis enhances clarity and user-friendliness, particularly for those unfamiliar with coordinate-based systems.
  8. Diverse Community Engagement: Harlem Genesis is not just a space for commerce but a platform for vibrant community interaction, blending social networking with business activities to create a rich, interactive environment.
  9. Focused on Economic Empowerment: With a mission to fuel Black businesses, Harlem Genesis is also a platform with a purpose, aiming to uplift historically marginalized communities and provide them with a digital space to thrive.
  10. Tokenomics Designed for Growth: The platform's revenue model and reinvestment strategies are designed to support and scale businesses within the ecosystem, creating a virtuous cycle of growth and sustainability.
11. Difference in Purpose and use cases: Traditional real estate serves various purposes, such as residential, commercial, industrial, and agricultural. Virtual real estate in the Big4 Metaverse platforms, while also offering opportunities for virtual businesses and communities, centers predominantly on social interactions, entertainment, and creative pursuits within virtual worlds. The big difference with Harlem Genesis is that its main purpose is not entertainment, is business. As family is the seed for a society, business is the main inception seed for an economy; entertainment is part of that economy but is not the foundation. This is why Harlem Genesis has emerged as a pioneer in the virtual economy ecosystem focusing mainly on Black Businesses and artists.
12. A phase approach for sustainable growth: combined with the particular urban planning, our progressive and controlled onboarding road map ensures a resilient onboarding strategy, reducing significantly the volatility factor.

These refined advantages articulate the unique selling points of Harlem Genesis and position it as a forward-thinking competitor in the virtual real estate market.
CONCLUSION: CHAMPION PORTFOLIO AGAINST ALL ODDS
In these uncertain times, safeguarding your investments means thinking beyond the traditional. I invite you to cross-check and categorize your current investment assets into the three categories that we have labeled throughout this article. A future-proof and balanced portfolio that includes L1 traditional assets, L2 digital/metaverse assets, and specifically L3 curated opportunities like Harlem Genesis are of the utmost importance for both investors well-versed in the nuances of digital assets or just beginning to explore these new frontiers and seeking to strengthen their investment portfolio. Consider how each level can complement the others, distributing risk among all three levels hence enhancing overall portfolio resilience. Together, these layers form a comprehensive, resilient strategy that stands ready to navigate any future, making your portfolio truly champion against all odds.

I urge investors like you, visionaries and with a good intuition for opportunities, to expand your portfolio's horizons with technology-driven assets like Harlem Genesis virtual real estate. Its Digital Renaissance Estates investment offer stands out as a Level 3 asset, not merely for its innovative approach to virtual real estate but for its dedication to fostering economic empowerment and community resilience. With its unique focus on supporting Black businesses and artists, it offers more than just financial returns; it provides a stake in a growing community poised to shape the future of the digital economy. And remember, DON’T EXPECT TO SEE A CHANGE IF YOU DON’T MAKE ONE.
MAY, 20 / 2024
As we stand on the cusp of this new frontier, we extend an exclusive invitation to visionary realtors. Discover the Harlem Genesis Real Estate Asset Catalogue—a curated collection of our virtual estate offerings. This catalogue is only available under private invitation, providing a privileged peek before the launch of our Alpha phase. Embark on this journey with Harlem Genesis—where innovation meets legacy. Request Your Private Invitation to the Harlem Genesis Real Estate Asset Catalogue.
Text author: Jimmy Jean
(AI support has been used for the elaboration of this text)
Photography: Midjourney AI ©JJBK studio 2024

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