Why Tokens Are The Next Big Thing – And Why You Should Care!

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Ab big change for the markets is coming. And it is inevitable.

Disclaimer: This is NO financial advice. All content provided is for educational, entertainment and informational purposes only!

The blockchain technology was the missing piece to transfer certain traditional markets and trading systems into the digital age. Simply spoken can a token be the digital form of an asset, or more precise the rights (of ownership) to an asset. It is theoretically possible to tokenize ANY asset. And this is where the real paradigm shift happens. We can already see it in the arts market with the boom of NFTs (Non-fungible tokens). Not only enable they every artist, everywhere in the world, to offer the own creations on global, digital marketplaces like OpenSea. These tokens although make it possible to constantly earn a share of every further trade of the same work of art (= passive income). And they opened up completely new markets: Expensive assets like real estate and even rare, high value works of art can now be offered to ordinary people with an average salary. This is possible because it is not necessary anymore to own the assets as a whole. A large real estate property can be divided into small units (tokens). Just as company ownership can be divided into shares of stock. This will lead to the democratization of the art and real estate market. And to a big simplification for both, the seller, and the buyer.

Furthermore, there are the advantages of the underlaying blockchain technology, like speed, transparency, proof of ownership and cost efficiency. No need for middlemen, high commissions or complex, time intensive written and verified contracts anymore. The non-manipulable blockchain and smart contracts don’t leave any room for doubts about trades and ownership and avoid subsequent court cases.

The only thing that can slow down this whole, transformative process are the laws and regulations of the different governments. But like history shows, revolutionary developments and technological progress can not be stopped by politicians.

Summarized (TL;DR): Tokens are revolutionizing traditional markets. In the future nearly anyone will be able to sell and buy all kind of assets or shares of high expensive possessions. Online, secure, fast, at low cost and without a third party involved.  

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