Cryptocurrency is front and center in the luxury industry, says Richard Iamunno, Chief Executive Officer of Atlantic International Capital Digital Assets Group. Increasingly, luxury brands are accepting cryptocurrency for purchasing their products, he says.
Crypto itself is a luxury item. Many non-fungible tokens (NFTs) are selling for the equivalent of several million dollars, for example. Cryptocurrency will continue to become more important in the luxury markets.
Luxury Potential is High, Says
The luxury potential of crypto is high. Millennials represent about 50 percent of those who buy luxury items. Millennials and Generation Z, which is the generation just younger than Millennials, represent more than half of those buying crypto. More than one-third of the individuals who use crypto earn more than $100,000 a year. Clearly, the statistics support the growth of crypto in the luxury industry, Iamunno says.
Many Luxury Companies Accept Crypto
Many producers of luxury goods are moving to accept crypto. Among the luxury companies that now accept crypto are TJB Super Yachts, Norquain, Tesla, Hublot, Travela.com, Gucci, and Sotheby’s. More fashion companies are likely to begin accepting cryptocurrency based on discussions with professors at the Fashion Institute of Technology, Iamunno says. The post-discussion conclusion was that if fashion companies plan to survive, they must develop a cryptocurrency strategy, he says.
Crypto Is a Luxury Good
In many cases, cryptocurrency itself is a luxury good. Luxury goods bring a sense of sophistication, superiority, and pedigree. Luxury goods also aren’t necessities but rather objects of desire. All of these characteristics apply to cryptocurrency, Richard says. Bitcoin, for example, is desired and valuable.
NFTs are unique and can represent digital files in the form of art and collectibles, both of which are often perceived as luxury goods. For example, Jack Dorsey’s first tweet as an NFT sold for $2.9 million. Artist Mark Winklemann recently produced an NFT that sold for $69 million.