Whisky Casks on the Blockchain
[Editor’s note: If you’re in the crypto space, chances are you’ve heard of NFTs (non-fungible tokens.) Today I’d like to share with you an article written by Chris Campbell, which features an interview with the co-founder and CTO of Metacask. This Swiss-based company has a unique position in the world of whisky and NFT’s – read below for details– and we’ll talk again on Friday. Carpe Crypto.]
Nim Siriwardana lives in the so-called “Crypto Valley of Switzerland.”
It’s an old fishing town called Zug; a word referring to the individual’s right to pull fishing nets out of the water.
In the Middle Ages, this unfettered right to fish was important for the town’s local economy.
Fast-forward to the 21st century; demand for the right to fish is being replaced with the right to trade in private digital currency.
“There’s actually a lot of crypto companies here in town,” Nim said, “which is one of the reasons why I set up the company here to start with.”
Nim’s company, Metacask, is a unique one in the crypto space. Metacask is a marketplace for whisky casks — using NFTs.
“The concept here,” Nim says in our exclusive interview below, “is quite simple. You can actually buy and collect these barrels of whiskey as they mature, either for personal consumption down the line or perhaps you hold it and then, because it is also potentially a collectible and high end item, you could sell it at some profit in the future.”
Here’s how it works.
Each NFT is tied to a specific physical cask, held by a vetted broker. As long as you hold the NFT, you have delivery rights to that cask or you can sell it any time on the Metacask platform. If you take delivery, however, the NFT is burned and you receive the cask.
(If you hold it long enough, you can eventually have it bottled and then take delivery.)
Why whisky casks?
In many jurisdictions around the world, whisky casks are considered property. Therefore, they have no specific restrictions on who is allowed to own or trade them.
Typically, the older the cask, the higher the return on investment.
Also, for the most part, whisky casks are considered “expiring assets.” Therefore, in certain jurisdictions, they are exempt from capital gains tax.
Indeed, Metacask is yet another example of the strange rise of NFTs.
NFTs in NYC
Our senior analyst, Chris Harris, met Nim while attending the recent NFT mega-conference, NFT NYC.
In October, if you didn’t know, NFTs took over the city. You couldn’t walk through Times Square without being bombarded with NFT projects on the big screens.
Chris caught some pictures.
As highlighted ad nauseum at NYT NYC, the first wave of NFTs is digital collectibles.
But that’s just the beginning. It’s quickly dawning on cryptonauts that digital .jpgs are a primitive version of what we can do with NFTs.
You can think of NFTs as digital property rights; immutable, uncensorable, untamperable, instantly-verifiable proofs of ownership.
For this reason, NFTs have the potential to make every single industry — from art to whisky to real estate — more efficient and dynamic.
As Chris put it, “the NFT is taking the place of a physical certificate. And it’s accessible from anywhere and most importantly, unique.”
The implications for every industry on Earth are yet to be discovered. And some early pioneers, like Nim, have headed West to see what’s there.
That’s exactly why Chris sat down with Nim this week — to see what he’s doing with NFTs… and why this newfangled business model represents a whole new paradigm for investors.
Watch the full video above.
Enjoy and have a good weekend.
Also, if you want to learn more about Metacask, here’s the company’s FAQ page.
For Daily Crypto Hunter