Cult Capitalism

ult capitalism is one of the terms we use at Mintted to describe an economic model that values public figures for their prestige, reputation, or brand. This is possible because much of the economy and trade are rooted in shared beliefs about what holds value—not necessarily based on utility, like money, but rather on perception.

The Role of Perception in Value

Art is an excellent example. Many investors choose art as an asset because they see value in a piece and believe others will too. They buy it with the expectation that someone else will also value it in the future, should they decide to sell. They might think art critics, museums, and other institutions determine painting or sculpture value. But in reality, its value is set by the latest offer from the last buyer.

I realize I’m simplifying something very complex. However, the truth is that financial assets are not solely based on math, economics, or financial science—they are also heavily influenced by faith and belief. That’s why some companies are valued far above their “real” value. I put “real” in quotes because the true value of a publicly traded company is the price at which it trades—not the estimates experts believe it should hold. Of course, those beliefs can change, depending on how well-founded or poorly—founded they are.

The Modern Icons of Cult Capitalism

Cult Capitalism finds expression in figures like Elon Musk—a quintessential postmodern character and an emblem of 21st-century capitalism. This form of capitalism aspires to be sustainable, inclusive, “progressive,” and tech-driven, while remaining fiercely liberal and capitalist. In the 20th century, these figures were Rockefeller, Getty, Buffet, or even Gates. Each represented the economy/capitalism of their era—steel, transportation, oil, finance, and software.

Today’s icons reflect today's booming sectors:

• Bezos (Amazon Web Services) with the internet
• Zuckerberg with media (social networks) and telecommunications
• Google, Apple, Tesla, Nvidia...

The five largest companies in the world are no longer oil corporations, banks, or physical infrastructure firms. They don’t trade raw materials, build things, or provide credit services. They are technology companies that, for the most part, deal in intangibles. And much of what they sell pertains to the future, not the present.‍

Reputation and Legitimacy as Personal Capital‍

Given this, it’s no surprise that public figures representing this intangible-driven economy also build their own intangible personal capital: reputation and legitimacy. Here’s an article by Vitalik Buterin (founder of Ethereum) on this topic-it's worth reading: Legitimacy.

These two concepts are becoming fundamental in this Cult Economy. If the main assets in this economy are followers, fans, interactions, and content, then the pure capital that gives value to those assets is the reputation and legitimacy of the individual or personality around whom the community revolves.‍

Brands of the Future: People or Communities?‍

The other day, I told a friend that in the future, many leading brands will be individuals. He replied, “People or communities?” And that’s a valid point because this new structure of intangible capital revolves around image, reputation, and legitimacy. For those to exist, there must be a community or group of people who believe in them. That’s why Cult Capitalism revolves around intangible capital creators.

However, it’s only possible through communities that value that capital. The empirical evidence lies in how a single tweet from Elon Musk can make hundreds of millions of dollars vanish or materialize in Bitcoin or his own company.‍

The Future of Cult Capitalism‍

But the same is true of finance, economic policy, sports, and nearly every other sector. We are heading toward an economy that relies more on intangible concepts. These concepts will determine how markets and companies are shaped, particularly in what is known as the Content Economy. But that’s a discussion for next week.

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