Our core belief at www.Cryptocurrency.Market is that we are witnessing the emergence of a new asset class that will emerge to be among the dominant asset classes such as:
- stocks, bonds
- real estate
- precious metals
I believe this “emergence” will happen over the coming decades.
This asset class, which we’ll call “Blockchain Assets“, use a distributed ledger and public/private key cryptography to establish and transfer ownership between users with digital signatures.
The advantages of such assets include:
- censorship resistance
- permission less participation
- robustness from lack of central point of failure
- …and continuous uptime
The use of cryptographic signatures is why these assets are often refer to as “Cryptocurrencies“, or just “Crypto” for short.
The most common use case for blockchains today is digital currencies.
But these ledger entries, which are often referred to as tokens or coins, can represent any kind of asset imaginable, real or abstract.
They don’t have to be used as currencies, but they will represent some kind of asset.
The Emergence Of Blockchain Assets
We feel the term “Blockchain asset” is a more accurate description of what they are, since “asset” is a more general term than a specific kind of asset like “currency”.
Blockchain assets will blur the line between differences in asset types since digital assets will be highly fungible and easily traded.
There may no longer be a huge distinction between stocks, bonds, debt, and foreign currencies as there is today because they can be used and traded interchangeably.
Bitcoin is the first and currently most dominant blockchain asset representing over 80% of the value in this asset class!
Bitcoin was designed from the beginning as a digital cash.
Its goal was to create a token that could be passed between users over the Internet, the same way as cash in the physical world, without relying on trusted financial institutions to settle transactions.
When Bitcoin achieved this goal, it also achieved a way for parties to agree on a state of reality without a central authority on a scale never before possible.
This achievement can not be overstated!
Much of our lives has to do with dealing with central authorities of some type instead of interacting directly with each other. These authorities keep official records of what has transpired, act as counter parties in trade, and act as mediators when there is a conflict.
Bitcoin has shown us a way to eliminate the need for this for the application it was trying to solve.
But this technique can be used far beyond digital cash with applications we haven’t even thought of today.
An analogy is that when the Internet was first invented, it was often thought of in terms of mail and telephones. While the Internet could certainly function as mail or phone, its applications went far beyond that; far beyond what its inventors could have ever imagined.
The advantages blockchains means we expect many types of assets to migrate over to this form. We also expect new kinds of assets we’ve never seen before to be offered on a blockchain.
If our thesis is correct, we expect blockchain assets to reach trillions of dollars over the coming decades, much like stocks, bonds, currencies have trillions of value in aggregate.
According to Coinmarketcap.com, the total market value of blockchain assets is less than $20 billion.
In order to get to trillions, we will see many extraordinary investment opportunities with orders of magnitude returns in the coming decades. This will give us many opportunities to achieve life changing profits.