During one of the most prominent forums of the event TadeOn Summit 2020, the important issue of tokenization and the future of investments was discussed. The presentation touched on important topics such as the creation of new business models.
This forum was chaired by Etha Pierse, founder and director of the CryptoAssets Institute. In the same, in addition, the possibility of new forms of financing in real estate, intellectual property, films, arts, music, among other topics, with the tokenized form, was evaluated.
According to their position, traditional forms of investment become increasingly risky. For this reason, he believes, it is necessary to advance in the new technologies of digital assets, which would open a new window in the business world.
The tokenization of securities and future investments
Profit tokens, Pierse assures, “They are the fuel for companies’ solutions”. In the future we will see how tokenization will become the axis that moves industries and investments around the world.
The next step, in this evolution of investments, is when people get their tokens and exchange them for fiat. However, after that, there will be a complete tokenization, where some tokens can be exchanged for digital currencies such as Bitcoin or Ethereum or even for other tokens.
In the same order, he assures, the investments of the big companies, little by little will come off in insecure ways that are wrapped in fiat money. Banks will be forced to adapt to this new model. At this stage, we will be at the gates of the future that is expected within the powerful Blockchain network.
Thus, tokenization will go hand in hand with all aspects of economic life and will shape the future of investments.
Why tokenize securities?
Among other aspects touched on in this conference, the author projected the reasons why securities should be tokenized. The most important of them, in his opinion, is democratization.
“The tokenization of securities is mainly about creating a future in which, even people with small amounts of money or small capital, are able to invest in high-yield assets”, Explain.
Another reason Pierse outlines for the tokenization of securities in the future of investments is fractional ownership. In this case, the possibility that high-yield assets are divided so that more people are able to invest in them, is one of the great advantages that, in a few years, will open up great opportunities for more people.
Key points
- The tokenization of assets will allow investments to be more democratic in the future.
- Also, with this movement, large assets will be divided so that people with little capital are able to invest in them. This would give more depth to the market.
- Liquidity is another of the most important aspects. Although tokenization does not contemplate daily and constant liquidity, it is capable of maintaining mobility that is difficult to contemplate with fiat money.
- Efficiency is counted as one of the key points. With tokenization, there is the possibility of 24/7 exchanges. This implies speed of transactions and low commissions.
Reliable sources
The information in this content has been extracted from reliable sources detailed below.:
1- Professional handling of content by the authors of CriptoTendencia.
2- External sources: tradeonsummit.com.
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