0/ Three *possible* reasons why securities tokenization, if successful, may be as socially impactful as bitcoin.
1) Fractional ownership
2) Price discovery
3) Increased moneyness for tokenized assets
1) Fractional ownership
2) Price discovery
3) Increased moneyness for tokenized assets
1/ With fractional ownership the average investor will have access to more assets. This means they can better plan for the future by creating a portfolio with a superior risk/reward profile.
Have you looked at how correlated stocks and bonds have been in the last decade?
Have you looked at how correlated stocks and bonds have been in the last decade?
2/ Tokenization improves liquidity, which in turn leads to better price discovery, which in turn leads to more efficient capital allocation, which in turn leads to increased productivity.
Admittedly it's a second-order effect that is difficult to measure.
Admittedly it's a second-order effect that is difficult to measure.
3/ Tokenization increases moneyness of the underlying asset by increasing divisibility and portability, thereby reducing the economic system's need for money.
Furthermore, if you subscribe to the credit theory of money, this could lead to natural deleveraging of the economy.
Furthermore, if you subscribe to the credit theory of money, this could lead to natural deleveraging of the economy.
4/ This is merely a thought experiment, not a prediction whatsoever.
But I am of the view that tokenization and cryptocurrencies will have a lot of synergies.
An early sign of this is ICOs, which are just tokenized securities that crowd-fund with cryptocurrencies.
But I am of the view that tokenization and cryptocurrencies will have a lot of synergies.
An early sign of this is ICOs, which are just tokenized securities that crowd-fund with cryptocurrencies.
@Laeeth Curious if you have any thought on this.
