Money and asset digitization is here. Bitcoin has not been solely responsible for the popularization of digital currencies and blockchain technology, but it is one of the largest forces, without a doubt. Other major players, such as government agencies, major financial organizations, and now Facebook, have recently tipped the scales in blockchain’s favor as far as the average consumer is concerned. Digital assets are now becoming known as credible tools, instead of just a niche market for risk takers and pros. Bitcoin has been with us for over ten years now.
Despite a few growing pains, the world’s most popular cryptocurrency has done very well to show the world new possibilities for the road forward – especially lately. So well, in fact, it would certainly seem that money and asset digitization is a guaranteed reality in tomorrow’s markets. There is already a fairly clear roadmap for how digitized money can be handled and managed but looking at the larger picture, which includes asset ownership, churns up a host of new questions.
Concerns over digitizing securities
Money and asset digitization on a grand scale is coming. However, when it comes to how to digitize assets, there are still many questions as to how it will be implemented. Assets can mean any number of things, including real estate, equity, and stocks, and, each different type of asset has its own set of priorities, pros and cons. Whether liquidity, prices, speed, ownership, or globalized reach take the top priority for the asset in question means each will likely be structured in unique ways. While planning has begun, reaching any kind of unified idea as to how best to move assets into the digital space is still proving to be a challenge, and will likely do so for quite some time.
The beauty of digitizing assets
One thing to be sure is that once all the kinks get worked out, trading in digital assets will be much easier, cheaper, and faster than ever before. Currently, there is an entire industry in place to ensure that asset ownership is secure, and that trading occurs in a regulated space. Lawyers, accountants, brokers, and everyone in between, form the various moving parts of the system, and it can all be incredibly expensive. Trading digital assets through the use of tokens would streamline the entire process and would also likely cause a major shift in how asset-related business is done.
Implications of digitizing ownership
Looking at current markets that deal in cryptocurrencies, “large” is measured in billions. Whether it’s private cryptocurrency holdings or any other, if there is a value in the billions it is at the top of the food chain. Soon, however, that may not be the case. When securities in all their various forms begin to use blockchain to digitize assets, we will see movements of trillions of dollars as a new standard.
Suffice it say, we are looking at a paradigm shift in how the world sees and deals with ownership of assets. It won’t be long before we begin hearing stories of the knock-on effect on other blockchain products.