In 1929, Joseph Kennedy Sr. found himself at the receiving end of some unsolicited advice from his shoe shiner who was offering tips on the stock market. This is now well regarded in investor circles as a key indicator of a time to get out of the market.
When listening to the popular All in Podcast hosts
They discussed a group of painting contractors that were investing in cryptocurrencies, and the hosts were concerned by this accessibility to the markets.
However, David Sachs makes a point "Why as a free people should we not be able to buy crypto or Bitcoin if we want to?"
This is one way in which the world of decentralized, modern finance differentiates itself from traditional financial incentives. It democratizes financial services and opportunities that would so often be reserved for the elite classes.
As traditional notions of financial literacy give way to the digital era, the impact of digitization on our financial well-being should be accessible to all.
If technology is at its best when it disrupts existing business models, then regenerative finance offers a unique way to disrupt the current status quo of investment opportunities.
By embracing regenerative finance, we have the power to open up access to assets like never before and create a path toward a future where our investments not only yield financial returns but also contribute to the greater good.
What if the tokens represented some of our deepest values? Regenerative finance provides a way for individuals to support and invest in larger issues facing the world like never before.
Instead of trading stocks, the individual is supporting causes, backing their belief system and the technology is offering accessibility, transparency, and immutability.
What if Your Digital Purchases Had Real World Impact?
At this point in time, if you are buying any digital goods online, you may not understand or care about the knock-on effects of your actions. However, with the introduction of cryptocurrencies to the public, it is no longer only investors scrutinizing their portfolios with long-term impact in mind.
Today, individuals are increasingly aware of social impact, financial inclusion, and the impact that their purchases are having on the natural world.
If more consumers are conscious of their shopping behavior, how can we service them? Regenerative Finance, aka ReFi, is offering us the chance to shift towards long-term financial incentives associated with the creation of low-carbon assets and technology that supports a reduction in greenhouse gas emissions.
You only have to take a quick snapshot of the numbers to see that sustainability ad the environment are key investment pillars now and for the future.
- A recent study by
NielsenIQ in 2022 found that 78 percent of US consumers say that a sustainable lifestyle is important to them.
- In a
2020 McKinsey consumer sentiment survey, more than 60 percent of respondents said they’d pay more for a product with sustainable packaging.
- According to the
International Energy Agency , there will be a 95% increase in global power capacity for renewables through 2025.
Global sustainable investment now tops $30 trillion—up 68 percent since 2014 and tenfold since 2004
Using Regenerative Finance to Drive Climate Action
As countries face mounting pressure to slash emissions and combat global warming, the need for individual action and awareness has never been more crucial. However, it is regenerative finance that holds the key to driving the necessary societal changes.
Many blockchain organizations today are working on ReFi models that offer a revolutionary approach to climate action. One notable project is EthicHub which is leading the way in providing financial incentives that increase the productivity of smallholder farmers.
Another project is Plastiks. With their recent Barcelona FC partnership, they are aiming to tackle our over-reliance on plastic by providing increased transparency using blockchain technology.
With the UN's vision for an environmentally friendly future gaining strong momentum, projects and companies aligned with this vision are reaping the rewards. Gone are the days when organic and sustainable products were seen as expensive luxuries.
Yes, they do carry a higher value, but that doesn't mean the cost of production has to be exorbitant. In fact, utilizing upcycled and recycled raw materials often leads to cost savings, yielding a higher return on investment.
As more businesses across all industries embrace eco-friendliness and consumers double down on their sustainability efforts, the race is on to provide vehicles where companies can offer a greener future.
The utilization of blockchain technology goes beyond providing access to finance; it has the potential to drive efficient carbon emission reporting, and the applications could drastically improve current supply chain management.
The Shoe Shiner Can Make a Difference
In the Web3 realm, where communities forge alliances that are strong enough to create tidal waves of financial momentum, the average consumer has the opportunity to participate in ways that would have been unimagined in the past.
With access to decentralized finance, the average consumer has an opportunity to invest in the projects he/she supports and develop a deeper connection to the success metrics of that project through tokenization.
The democratization of investment opportunities is crucial for the well-being of future generations.
The recognition of income inequality and the aspiration to provide equal chances for wealth accumulation drive the push for democratizing investing using ReFi and other DeFi mechanisms.
This levels the playing field for attaining financial stability. Decentralized finance reduces the barriers to entry when individuals wish to support companies and causes that relate to their values.
Furthermore, democratizing investing can foster financial literacy and education. When individuals have access to more information regarding financial services they can acquire a deeper understanding of investing and make more informed decisions.
In today's rapidly evolving digital landscape, the fusion of financial and digital literacy has become paramount. From effectively managing our finances and planning for retirement to securing funds for our children's education, the intertwining of digital and financial literacy is undeniable.
Ensuring that financial literacy is accessible to all, coupled with empowering individuals with digital skills, becomes the key to unlocking a prosperous and secure future for everyone. Let's equip ourselves with the knowledge and tools needed to thrive in the digital age of finance.
Through permissionless innovation, regenerative finance enables us to equip ourselves with the knowledge and tools needed to give the ‘shoe shiners’ of the world the knowledge needed to have some skin in the game.