Bitcoin is also far more secure than current technologies.
But bitcoin was just the start, for blockchain technology also allows for the next big thing: tokenization.
You’re more familiar with this than you realize; you’ve been recommending tokens to your clients for your entire career.
Instead of calling them tokens, however, you refer to them as shares.
Everyone would love to own Apple. But no one could afford to buy it; the company is worth about $2 trillion. So, the company has issued about 4.5 billion shares, each worth about $450. So, for just a few hundred dollars, you can own a tiny piece of Apple Corporation.
But why is such fractionalization limited to publicly traded companies? Why can’t we slice other assets into tiny pieces?
Well, now we can – thanks to the blockchain. In October 2018, a $30 million condo building in Manhattan was tokenized. In July 2020, real estate developer EMAAR, which built and sold 30,000 apartments in the last ten years for $24 billion, announced it is tokenizing the world’s tallest building, the Burj Khalifa in Dubai.
Suddenly, valuable assets can enjoy the same liquidity as stocks. And considering that the global stock market is the merely the third-largest asset class, there is tremendous, unprecedented investment potential.