Ultimately, there is no going back in a digital revolution which, of course, also reaches the field of financial investment, since this path towards global digitization necessarily passes through ‘tokenization’, that is, the conversion of all the exchange rights of economic activity into digital assets (‘ tokens’). Investors must therefore prepare to take advantage of the potential and benefits that this great transformation can offer.Click here for bitcoin price.
A few data are enough to illustrate how evident this new reality is already: a top company is trading more than 2,600 different cryptocurrencies with a market value of approximately 269,000 million dollars. Cryptocurrencies are gaining weight in investment portfolios.Visit this site for bitcoin price.
The future of assets will be ‘tokenized’
But ‘tokenization’ is a step beyond cryptocurrencies, since ‘tokens’ are units of value that do not have to be equivalent only to money, but to any right that the issuer of the ‘tokens’ wants to contemplate. ‘Tokenization’ is, in short, the conversion of the property rights of an asset into a marketable ‘token’ within the Blockchain space. Its possibilities are endless.
Not surprisingly, therefore, most financial advisers consulted (six out of 10) are already confident that the future of assets will be ‘tokenized’. This will represent a new financial paradigm in which most of the financial wealth will be transferred through Blockchain protocols, whose technology improves transparency and reduces friction within global trade.
Challenges: regulation, volatility and fraud
The traceability that block technology offers, universally accessible, is also the disruptive force that is changing the way of investing and that will democratize investment in the future. Of course, there are still obstacles to solve. For example, the lack of regulation, volatility and fear of fraud are the elements that investors most highlight as brakes in investing in crypto assets.
In this context, one of the concepts that can give a decisive boost to this digital revolution is ‘ trading’ or social investment, the development of a new global community of investors that, in my opinion, should be considered as a new way of investment within the financial system. Social investment allows users to ‘follow’, that is, to copy the investment approaches of those investors who have been most successful in the platform in a completely transparent way.
To put it simply, this is the Facebook of investment. Investors can buy, hold or sell their assets in a simple way, as well as monitor their portfolio in real time and carry out transactions whenever they want with full transparency.