Crypto Wealth: Explained
Founder and CEO
6 March, 2021 | 5 MIN
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 investments look and feel different from traditional assets. They’re the newest asset class on the block, which makes them unfamiliar and intimidating to many would-be investors. That’s why a Crypto Wealth Platform is so invaluable. Dacxi’s Crypto Wealth Platform is filled with trusted and up-to-date information and educational resources. It’s designed to give investors the confidence they need to treat crypto as a genuine (and successful) wealth-building asset, rather than a lottery-ticket-style gamble.
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.