Reimagining The Future of Wealth Valuation

Partner content by Mike Cautillo, Founder at eHoldings.

In John Maynard Smith’s and Eörs Szathmáry’s “The Origins of Life: From the Birth of Life to the Origin of Language”, they hypothesize that sapiens' ability to create, collect, and transfer wealth through symbolic items like jewelry and collectibles may have been a critical factor in their success over Neanderthals.

While both species had similar brain sizes, the cultural and social behaviors that emerged in Homo sapiens, like the ability to accumulate and trade symbolic wealth, might have fostered stronger social cohesion, enhanced communication, and more complex social networks.

These behaviors could have led to better cooperation, resource sharing, and even group survival, giving them a competitive edge.

This theory is especially relevant today as our understanding of wealth and how we measure it continues to evolve.

The Great Wealth Transfer garners more headlines in the world of wealth management today, yet we are unmistakably in the midst of a period of rapid technological transformation.

This technology is already central to our lives and will only grow in significance. And while we have measured wealth since the industrial age, that measurement of wealth is evolving through innovation.

The modern global era has been a period of immense and discretionary money creation, often requiring more energy yet yielding diminishing human productivity.

Although this era has on some levels ushered in unprecedented reward and innovation for the betterment of humanity, we’d be remiss if we didn’t acknowledge the negative implications that accommodative monetary policy has had thus far.

Family financial wealth has been measured more by the quantity of dollars than by their quality.

The ability of currency to retain purchasing power or be limited in supply is diminishing:

With monetary devaluation becoming more evident, accumulated wealth may no longer hold its value in fiat currency, as it becomes a less reliable measure of worth.

Take a step back and assess what has happened over the last two decades, particularly the increasing vulnerability of central banks and the rise of digitally scarce, sovereign store of value systems like Bitcoin. While the one system is old and the other new and innovative, it’s clear that the latter is shifting the concept of how wealth is measured, and will increasingly continue to do so.

We are at the beginning of a new era, one that requires us to reimagine how novel forms of technologies can preserve real value over the next twenty-five, fifty or even one hundred years.  Anyone serious about preserving wealth must recognize this paradigm shift, as the rules of value are being rewritten.

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