Many traditional investment firms rely on well-honed and zealously guarded investment strategies they develop over time. They base these strategies on hypotheses about market conditions and opportunities they see play out over the course of years and years of economic activity.
However, their approaches to investing don’t always make the most of what’s possible in the world of digital assets. As a new field, blockchain technology requires new tools and new outlooks to be understood correctly and profitably. It should be looked at through the lens of technological development, not only from the lens of traditional finance.
This is why Welthee, a blockchain platform for retail investors, has subscribed to acclaimed futurist Peter Diamandis’ idea of the 6Ds of Exponential Organizations. In a nutshell, Diamandis proposes that truly innovative technologies go from relatively slow development to an almost overnight explosion of innovation and value creation. For him, this is due to six factors: these technologies are generally Digitized, Deceptive, Disruptive, Demonetized, Dematerialized, and Democratized.
Diamndis gives his own description of these.
Digitized: “Anything that is digitized […] becomes information-based technology and enters exponential growth.”
Deceptive: “When something is digitized, its initial period of growth is deceptive because exponential trends don’t seem to grow very fast at first.”
Disruptive: “The existing market for a product or service is disrupted by the new market the exponential technology creates because digital technologies outperform in effectiveness and cost.”
Demonetized: “Money is increasingly removed from the equation as the new technology becomes cheaper, often to the point of being free.”
Dematerialized: “Separate physical products are removed from the equation. Technologies that were bulky or expensive – radio, camera, GPS, video, phones, maps are now all in a smartphone […].”
Democratized: “Once something is digitized, more people can have access to it. Powerful technologies are no longer only for governments, large organizations, or the wealthy.”
Applying these insights to blockchain technology has helped Welthee develop a service that makes smart investments on behalf of retail investors in projects that follow these development stages. While there is no surefire way to determine if a company’s value will become exponential, Welthee is able to take note of key indicators that show whether or not it has taken the right aim.
Another part of Welthee’s approach is to focus on companies in a rapid growth phase. Telling apart rapid growth companies is possible by studying its history through the lens of a business lifecycle, which consists of six phases: setup, startup, rapid growth or death, maturity, decline, and rebirth or death. The service combines these two approaches and others, such as investing in companies with good product-market fit and healthy teams, through patent-pending risk mitigation methods and AI-based portfolios.
More so, Welthee is able to make it easy for investors to create passive income streams with zero fees and low variable risk on the Welthee platform. All while investors and clients keep their funds in their own wallets.