Tokenization will turn the whole internet into the world's largest "Stock Market"
Reading that quote gives me goosebumps, especially when thinking about SMTs and Steem.
But wait, it gets better...
This was a quote retweeted by Dan Nathan of Fast Money on CNBC:
The original quote was uttered by the CEO of 21.co, Balaji S. Srinivasan, on CNBC back on September 7th.
The exact quote can be read here:
"With that said, relative to existing secondary markets in either property (like houses) or equities, the scale of what is happening with the token market is unparalleled. It's one thing to have a bunch of small secondary markets; it's quite another to turn the internet itself into a market. Anyone with an internet connection can purchase a token. See shapeshift.io (or steem SMT) for a great example of this.
The rise of all these new tokens and public blockchains means the internet will, in the long term, become by far the biggest "stock market" -- once the regulatory issues are worked through -- just as it has become the biggest library."
(except for that part about Steem and SMT, I added that part) :)
But, Wow!
The entire release can be read here:
https://www.cnbc.com/2017/09/05/balaji-srinivasan-21-co-interview-on-blockchain.html
Let's break that down a little...
Basically he is saying that what is about to happen is without precedent, basically since the creation of the internet. There are tons of other markets out there, some of which are very large, but this could make the entire internet a market place. One just waiting to be tokenized.
Which is another reason why these things will be so hard to control. If two people have an internet connection there can be a token transaction. In order to shut it down, the internet will have to be shut down.
The big thing is going to be making sure all these new tokens are not securities, that is one of the biggest things the SEC is looking at. If they are securities there is a whole host of regulations that will be attached to them.
Basically as long as the token has a utility behind it, it won't be considered a security.
What can be tokenized?
According to Balaji, tokenization will be most closely related to scarce assets. Anything that is scarce, for one reason or another, will be tokenized.
Today the most appropriate thing to tokenize is something that is purely digital.
However, by 2025-2030 Balaji thinks that there will be jurisdictions that allow the tokenization of virtually any scarce resource, including personal tokens.
By that time you might be able to take a stake in an individual's tokens by giving them a lump sum of digital currency today in exchange for some smart-contract enforced percentage of future earnings on just about anything.
Want to buy some of Steph Currie's future earnings as a basketball player? You just might be able to do that some day.
Pretty exciting ehh?
The dam is breaking, the stampede is coming, do you hear it?
Stay informed my friends.
Sources:
https://www.cnbc.com/2017/09/05/balaji-srinivasan-21-co-interview-on-blockchain.html
Image Sources:
https://www.earth.com/news/understanding-early-life-forms/
https://twitter.com/BKBrianKelly?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor
Follow me: @jrcornel
In the long term, tokenization is is inevitable. All the trends clearly point towards a shift into this space, whether it's in gaming, social media or running a business online with fewer overheads, minimal resources and at far greater transaction rates than ever before. I still believe we are in the innovation phase, so the potential to grow and scale this technology is huge...the time to get involved has never been more auspicious to for literally ANYONE to make the most of this in an economical sense and use it as a tool to become financially independent and free of the shackles of an outdated, failing corporate model that benefits the top .1% of the population whilst wrecking havoc on our planet.
Ok. Who wants to buy tokens backed by my future creations? How can i create them? :)
Sensational find @jrcornel.
It is interesting to see Dan Nathan tweet that out because he isnt the real techy guy on there...that is Brian Kelly. Dan seems more like a novice to this.
That said, it is amazing to think of all the personal tokens that could be created. We are embarking upon the greatest wealth creation mankind has ever seen. Consider all the world markets, combined, and compare that to the size of the internet. It is no contest.
I have stated that the crypto market is going to explode because Wall Street is about to get into it.
This makes me rethink that....crypto is going to explode because everyone is going to get into it. Money will be flying in from everywhere since everything of value will be on the blockchain in some fore.
Simply amazing.
That very well might be the case... I have been reading a lot about different Wall Street players taking an interest in blockchain and crypto but it might end up being a lot bigger than just them...
What? Investor don't need to be techy.
About tweet:
Yes, now crypto is stock 2.0. Why? To buy stock you need a broker, money to buy atleast one whole stock (some stocs cost more than 100$) and often they don't profitable. Some brokers won't work with you if you have less than 10 000$, 100 000$ or more.
Crypto is very profitable and you can buy less than 1 coin. You can buy 1/100 of coin and less.
Yes. It will turn everyone into an investor, even the kid on the corner with $10 in his pocket.
Cool phrase. YES, it's so good to be alive, baby. 21 century is cool. I don't need to pay broker.
Yes, tokens remove many of the barriers to investing. There need not be some minimum amount of cash you must have before you can invest, which permits microinvesting easily and often (imagine an app like Acorns but for tokens that rounds up every purchase you make with your phone to automatically invest your daily spare change in a list of preferred tokens or cryptocurrencies). Some tokens, like the Crypto20 cryptocurrency index token, will permit you to liquidate the token for its underlying net asset value 24/7, meaning you can treat it like a money-market account -- C20 -> ETH on MetaMask -> ETH on Coinbase -> USD on Coinbase -> USD PayPal card or US Bank. Microinvesting in any token with 24/7 access, with a lot of automation, without the need for banks -- game changer.
Who knows such dime coin will become hundreds.It was proven many times in the short history of cryptoworld.
Despite what it may initially appear, I believe that we can all be optimistic about this future posibility.
In an initial look, this may appear to be quite concerning, with all these physical assets moving into the digital world.
Each deed, certificate of ownership or contract between parties, being made digital into a token or smart contract.
Since it all is a new and unprecedented movement, this change from physical to digital could create a cause of concern for both those in the blockchain space and the public.
That said though, with this there could be a cornucopia of new possibilities emminating from this forseen change.
Land ownership could be protected within the blockchain and not able to be messed with by greedy governments (at least not without physical force).
Vehicle data such as repairs and accidents would be transparently available to the buyer without any trust in the seller.
Investments could be made into companies and individuals without needing complex security measures and protections in place.
With any new innoviation, it is expected to be uneasy and this tokenization is no exception, but with the well made ICO's and smart contracts staying in the game due to good practices, hopefully when the time is right, everything will be built upon a tried and tested stable platform and we, as the pioneers, will know how to properly use the system.
@cryptowolf I can hope so. Only the power of many can equal the balance of those at the top. Our current economic model perverts our governments and legislative processes. In the U.S, throughout Europe, and especially in areas throughout in Asia, Africa and Latin America.
I look forward to what is possible and I believe in the humanity to out innovate the worst in our society
Nice post :D
Well said... I'm ready for the fireworks
I would not only Internet (of things), every bit work in to monetary value. Work produces data, data should produces monetary value. In fact corporations are collecting data on us, our belongings and activities (eg. activities in FB or Amazon), but we are not getting back anything. SMTs and other ideas are going change this status quo,
I deeply hope for the day when everything on the internet will be monetizable. That day will be magical.
The rodeo isn't over that is for sure!
Yeah investment banks are probably gonna short sell it now
That would be a bad decision. At least before Nov 18th
Man, the way things are starting to speed up, I'm beginning to imagine the flow of events being like how the faces of pilots looked as the were subjected to wind tests conducted by the Langley Research Center in 1946.