As we enter an exciting new world full of technological possibilities one must embrace the fact that the world as we have known it will not be the world of the future. Cryptocurrency and tokenization will play a much larger role in the day to day activities of the masses.

I recently read an article entitled 'Yesterday’s “plastics” are today’s crypto tokens' and found that not only was it very well written but it also contained several points that I strongly agree with.

It began with the following excerpt from the movie 'The Graduate':

Mr. McGuire: I want to say one word to you. Just one word.
Ben: Yes, sir.
Mr. McGuire: Are you listening?
Ben: Yes, I am.
Mr. McGuire: Plastics.
Ben: Exactly how do you mean?
Mr. McGuire: There’s a great future in plastics. Think about it. Will you think about it?
Ben: Yes I will.
Mr. McGuire: Enough said. That’s a deal.

The article's major premise was that tokenization of assets will allow new markets to develop and people who have very little money will then be allowed to make small micro investments and be more greatly included into our modern economy through the miracle of 'fractionalization.'

The following diagram shows how a cryptocurrency works:

Now imagine if you could apply this method to making a valuation for your house or your car or any other asset you could think of. Then you would be able to sell a percentage of your house on the open market with house tokens. You could then use the funds you received to pay for college and with the proceeds from your new career you could buy those same house tokens back.

Tokenizing real-world assets will allow buyers to access assets never before within their reach, and sellers to move assets that were previously difficult to unload. The secret lies in the possibility of fractionalization.

From real estate to gold bullion, diamond mines to carbon offsets, the smallest investors to the largest corporations will be able to procure fractions of tokenized assets. Investors could buy a portion of a shopping mall or invention patent, trade the token for a different investment, or sell their share.

Tokens will make it possible for people of all economic levels to buy into investments that so far have been out of their reach. Selling their interests in these investments will be as easy as making a couple of keystrokes.

Techblogger Wrap Up

The author of the article I read firmly believes that yesterday's 'plastics' are today's 'cryptocurrencies' and if this author is right, the gains on investments that people have seen in the cryptocurrency markets as of late will only get larger as this train picks up speed.

The author also argues that the following three things are all that is needed to launch of the next phase of a cryptocurrency mega bull-run.

1.) Integrating with established banking systems

2.) Government regulation

3.) Public trust and confidence issues

The company that is first to become the premier firm for tokenizing assets will be the company that goes the furthest in this growing industry.

Lets get a discussion going, please leave thoughts and comments below.

Sources:

Yesterday’s “plastics” are today’s crypto tokens - TechCrunch