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Class 1-5 Assets

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@chinito
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2 min read

Hello fellow hivers,

This is something I've been thinking about

for the past few days.. It's a way to classify assets.

Here's what pops up on Google when I searched for assets definition..

I don't know about that third definition, but I definitely agree with the first two. In fact, I would say definition 1, an asset is just something, anything, that is useful.. That, to me, could mean something as basic as a dollar in your wallet, or a burger in your hand. We can put these basic, but needed items in

*Asset class 1

  • Anything that you can use to live.. fulfill basic needs.. get food or water or shelter..

So then, the second class of asset is simply those things that can produce something from asset class 1. For example, owning a house that you rent out will produce money which can then be used to buy needed things. Another example would be having a garden that grows food to feed you.

So this type of asset is

*Asset class 2

The third Asset class is also intended to produce more of asset class 1, in the form of capital gains. Anything that can be traded and speculated on is in this asset class. Things such as stocks, crypto, precious metals, etc. It could also be collecting comic books or like splinterland cards that can later be sold for a big profit. :)

*Asset class 3 (capital gains)

I think you can see how each class is basically there to produce more of that useful asset class 1 stuff. In my mind, asset class 4 is just a bigger version of asset class 2, and also in a different form. I would say that something in asset class 4 is approximately 10 times (value wise) compared to a asset class 2 thing. To me asset 4 things are such things as a store, cafe, gym, etc. Someplace that could produce much more class 1 assets.

*Asset class 4

In the same way, asset class 5 is just a supersized version of asset class 4. For instance mall full of stores, instead of just 1 store, or a big apartment building compared to just 1 rental property.

Asset Class 5 (supersized asset class 4)

Now, this line of thinking could go on further.. perhaps like owning a chain of hotels, or so much real estate that you could make your own country, or owning as much stock as Warren Buffet, or maybe even a class 20 enterprise that probably Elon Musk has in mind where its on a galactic scale. :P

Another thing I was thinking of, probably a clearer way of explaining what I mean (the scale of it) is to use the hive progression as a loose comparison:

If we say each asset class correlates to a different marine animal, then that make sense to. What Asset class/marine animal are you trying to get to?