The Dawn of Asset Tokenization
When the word investment is mentioned most of you will automatically think of stocks and shares in companies such as Apple, Amazon and BP, gold, real estate and bonds. These are just a few of the most common investment opportunities that are made easily available to everyone, regardless of wealth level.
Investments into physical assets seem like a solid option, although they are still volatile, people feel comfortable investing in these type of assets because they are real. Amazon is a real company, you know this not only due to its significant media coverage but because, most of you will have ordered products from Amazon, which were delivered to your house and in speedy time . You can go to your local Apple store and purchase a new iPhone or iPad and bring it home with you today, and so when you invest into these companies you feel reassured that you are not just investing in a ‘dream’!
However, when it comes to virtual assets such as cryptocurrency, you are a little more skeptical, not only because the concept is just one decade old, but because these investments are not tangible. They only exist in a virtual world on the blockchain, which most of you do not fully understand due to the lack of educational resources, and so this is what makes the majority of investors nervous about investing in cryptocurrency. Especially, when there are more appealing physical alternative investments that are made easily available to all of you on the market such as, fine artwork, film and media, landmark buildings , French wine, sports teams, perfume, Disney World and a Grand Prix Race Car, right? Why would you want to invest in cryptocurrency when you can easily invest in Madison Square Garden?
If only it was that easy! Some of you reading this right now, will not have even been aware that such investments were even possible! This is because these type of investments, which are not new, and have existed in abundance for decades, are not currently made available to everyone, they can be difficult to legitimately source for the average person, due to the fact that they are often reserved for the ‘Elite’ and those ‘in the know.’
But, what if it was possible to combine cryptocurrency and tangible alternative investments, enabling anyone, anywhere to invest in unique and exciting retail assets regardless of wealth level or status? Would cryptocurrency then become more appealing to you?
Welcome to the dawn of tokenized retail investment portfolios, where cryptocurrency is able to tokenize assets by converting the rights to physical assets with economic value, such as a rare French Bordeaux, into a digital token.
The cryptocurrency sector is presenting new models of raising capital, which is secured by blockchain technology and makes it easier than ever before for global investments to take place without territorial barriers.
How does Asset Tokenization work?
On the blockchain tokens can be used to represent an participant’s shares in an investment, the value of which is then managed via a contract (smart contract) that is written and stored on the blockchain . This will allow investors of all sizes to participate in all different kinds of retail investments. As the blockchain is immutable, once an investor buys tokens, their ownership details can’t be erased or edited and so there will be no dispute in the future of who owns what as it will be sealed within the crypto space for all to see.
The tokenization of retail assets also opens up the opportunity to allow investors to increase the diversity of their investment portfolio by allowing anyone to own part of several different assets alongside their cryptocurrency investments. If you would like to own a fraction of a heritage building such as a Historic Scottish Castle or an English Country Manor, a percentage of a boutique hotel and a share of bottle for fine French wine then you will be able to — something that is not currently possible for everyone, without tokenization.
Why should limitation be placed on investment opportunities, when it doesn’t need to be?
B21 is launching something new….The B21 Investment platform, which is set to transform asset management, by bringing alternative investments to your fingertips via our goal based investment app. With B21 there is no middleman, no borders and no limitations. B21 allows you to manage your investment portfolio your way!
Interested to find out more? Join our Telegram group to find out more!