Cryptocurrency
The Tokenization of Things and the Stock Market 2.0
Since the beginning of history, owning land has always been an optimal store of value. In our previous systems, only the property owners had exposure to the appreciation of their property. The most valuable Real Estate properties in the world can appreciate 10-20% annually depending on various markets. Some may even double within five years. Unfortunately, only the wealthiest individuals who own these properties have exposure to these levels of appreciation.
“Money is power which is often reserved for the few. With cryptocurrencies and digital assets, money is now technology.”
– Matthew Roszak, Ted Talk San Fransisco.
Since the beginning of history, owning land has always been an optimal store of value. In our previous systems, only the property owners had exposure to the appreciation of their property. The most valuable Real Estate properties in the world can appreciate 10-20% annually depending on various markets. Some may even double within five years. Unfortunately, only the wealthiest individuals who own these properties have exposure to these levels of appreciation.
With the progression of blockchain technology, scarce digital assets will be created and their values will be algorithmically pegged to the value of any real world asset. Examples include automobiles, boats, real estate, and securities. These assets have a finite supply and in some cases, are divisible by the millions. The Tokenization of Things will allow any person in the world to own one-billionth of the Eiffel Tower, or any other high-valued property in the world. Tokenization and the creation of digital assets will allow investors to gain the exposure to these appreciation percentages without having to own entire properties.
Tokenization is not limited to real estate. Tokens can be created to represent any kind of brand, corporation, collectable, artist, or painting. In fact, the value of the Mona Lisa and many other famous paintings will be tokenized in the future. Traditional assets will also be tokenized both on an ownership and financing basis. There are a few platforms today, such as Polymath and T Zero, which are currently providing compliance for registered tokenized securities.
The earliest example of real world tokenization was the innovation of the stable coin. Tether, TrueUSD, and GUSD are all stable coins which are algorithmically pegged to the value of the US Dollar.
Overall, these systems are like early railroads. Blockchains are the rails and tokens are the boxcars which transport value around the world. We are still waiting on the rails to be built, but above all, the tokenization of things will create unprecedented levels of financial access, privacy, and security across many different asset classes. Ultimately, this is the stock market 2.0.
Disclaimer: I am not a financial advisor. This is not financial advice. Please do your research independently and make objective decisions. This article is intended to educate readers about the tokenization of securities and the stock market 2.0. The author of the article owns cryptocurrency.