Crypto Wealth: Explained
Dacxi is the pioneer in building a brand new niche called Crypto Wealth. You will hear me and the Dacxi Team talk about Crypto Wealth a lot and one of the most commonly asked questions I get is a request to define it exactly what it is. So here goes.
Crypto Wealth is an
exciting new niche in the Wealth industry, built on the principle of crypto as
a highly investable asset class. By 2030, the global Crypto Wealth market is
expected to be worth a staggering $10trillion. And at Dacxi, we believe everyday
investors should have the opportunity to get their own slice of that
multi-trillion-dollar pie.
What is a Crypto Wealth investment?
Traditional wealth
investments include equities, bonds, cash, commodities, and property. Crypto
Wealth investments are different. They’re part of the Alternative Finance
sector and fall into two categories; Cryptocurrencies, and Crypto Asset tokens.
Cryptocurrencies are ‘crowd-created currencies. They’re designed for different
use cases – for example, a new payment currency (like Bitcoin), or a currency
to pay for a global blockchain used to create tokens. As with any currency, a
cryptocurrency’s value will ultimately be determined by demand.
Cryptocurrencies are currently a trillion-dollar market, supported by highly
speculative trading. With some of the world’s biggest financial institutions
entering the market in 2021-2022, the market cap is projected to reach
$5trillion by 2023. A fifth of this market cap is expected to be owned by
retail wealth investors. Once values reach market maturity, the ‘speculative
investment value’ of cryptocurrencies will die.
Crypto Asset Tokens
Crypto-Asset Tokens are
created on general blockchains, like Ethereum. The Tokenization sector is
projected to be significantly larger than Cryptocurrencies and offers
extraordinary potential long-term returns. Tokens, also known as ‘smart
contracts’, can represent an asset – like a Tesla share, or a fraction of a
commercial building ownership. Or the token itself could be an asset, like a
loan document. The power of tokens lies in their tradability, divisibility, and
transparency. Tokens are highly tradable, because they’re easy to buy, store,
and sell globally – so anyone can own high-quality assets, without the usual
trade limits. Tokens are also divisible, in that the value of high-quality
assets can be divided into smaller tokens, and therefore owned by a larger
number of investors who can all reap the benefits. And the token ‘contract’ and
key metrics are all visible to the public – ensuring total transparency, and
total investment confidence. The largest and most exciting tokenization
opportunities are:
• The fractional
ownership of property assets
• Frictionless global
trading of listed shares
• Tokenization of
precious metals
• Tokenized
crowd-lending to major companies [ie. crypto-bonds]
• The use of tokens to
revolutionise crowdfunding and power global innovation.
For the most part,
Crypto Asset Tokens are securities. They require regulated platforms,
specialist support, and secure custody. These regulations mean Asset Tokens
have developed at a slower rate than Cryptocurrencies. But this doesn’t make
them any less valuable. The Asset Token’s global market potential is in the
$10s of trillions. And while financial institutions are expected to dominate
the industry, there are plenty of crowd-based opportunities to be found. The
market is predicted to exceed $5trillion by 2030, and tokenized crowdfunding is
projected to account for a fifth of that value.
Why does the world need a Crypto Wealth Platform?
Crypto Wealth is the most exciting investment
opportunity in decades.
As crypto’s blockchain
technology continues to democratise financial assets, a whole new world of
opportunities is opening up to everyday investors. Taking advantage of these
opportunities calls for unique and tailored support – and Dacxi’s Crypto Wealth
Platform is here to provide it.
Dacxi
is proud to support people on a path to prosperity with crypto. If you would
like to find out more then please join us at dacxi.com. We’re here to help.
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