There is nothing new under the sun. Humanity advances by responding to specific needs and optimizing, more and more, those responses. Nothing more and nothing less. From transport by car to the railway, from the railway to the AVE or the bullet train and, shortly, to the hyper loop. That is so in all industries and also, of course, in finance and investment.
Today we talk about the tokenization as something new and revolutionary, but the truth is that it began about 28 centuries ago, about. It was then that the first coins appeared. tokenized the value of goods (horses, pigs or vegetables), responding to the need to end the limitations of barter.
Around that first tokenization oriented to payment, an entire savings and investment industry was born from those tokens. And of tokenize goods (horses, pigs or vegetables) to tokenize companies. Yes, I’m talking about stock market created six centuries agoabout.
We will have to wait and see if this moment will be studied as the moment of democratization in investment
There are still the coins and there is still the bag. Nothing has changed, but nothing has to do with it. Today there is thousands of new coins based on technology projects that did not exist ten years ago, in the same way that you can invest in the stock market 24 hours a day, seven days a week in fractional shares, from 1 euro and from your smartphone through digital investment platforms. The optimization over these centuries, over the last decade, over the last year, and over the last 6 months has been incredible.
The key element is the digitization, another buzzword at any industry event, business meeting, or family meal. New? In the 70s, maybe yes. Today, not anymore. Revolutionary? For his position, and with a potential yet to be discovered.
Precisely for this reason, it continues and will continue to be present at these events, meetings and meals for quite some time. Because it is the facilitator of what is coming and what is coming is digital assets. And they come to stay.
The digitization of investment assets offers advantages that had not been fully exploited until now. These advantages are aimed at reduce the investment barriers that we continued to suffer. The barrier to entry by reducing commissions and making investment profitable from minimum amounts, the barrier of time and schedules, by allowing investment 24/7; the barrier of presentialism and the intermediary, by converting each smartphone in direct access to markets; the barrier to certain products, through multi-asset platforms that put available to the user anything that has value in the same place… The potential is unlimited and the immediate positive consequences.
Proper optimization of the right product at the right time makes the difference
The main beneficiaries are… everyone. The industry, retail, institutional, expert and novice investors. This is also good news for financial education, a pending task in our country (and in most of the world). A citizen who wanted to access investment not only had to be educated, understand and learn, but also should operate through intermediariespay their commissions, go to their office and adapt to their schedules, raise a considerable sum of money…
It is not motivating to dedicate hours to training in something, if the operation and execution are so complicated. Well, all that is over and with it the excuses to invest.
The final result, and the really important one, of optimizing an industry is to give access to it to a wide group of people who did not have it before and who were not even aware of the advantages of having it. This brings us to the third concept of fashion: the democratization of investment.
Some of us really believe in it and we trust that digital assets are a key lever to achieve it. For now, reality shows us that the public is interested and beginning to understand the advantages. The adoption is increasing.
What’s coming are digital assets. and they come to stay
We will have to wait and see how it evolves. See if this moment will finally be studied in the books as that of true democratization in investment. The moment in which the great public, not only those with a large heritage to protect or those who work in the industry and know its advantages, entered the markets in an organic way.
What seems certain is that digital assets will play an important role and that will be optimized over and over again to improve. There is nothing new under the sun, but history shows us that the right optimization of the right product at the right time makes all the difference.
***Alejandro Zala is director of Bitpanda for Spain