Bitcoin Is No Longer a Niche Asset
There was once the narrative that Bitcoin and crypto as a whole would fail and slowly sink into the ocean of nothingness. That narrative began to change in 2020 when disaster and calamity hit in the form of COVID. Since the market rose from the lows of March 2020, the narrative has shifted significantly. Some of the biggest skeptics have become outspoken advocates of Bitcoin in particular.
How does an asset that started at zero, with zero funding and zero backing, become the asset everyone now wants to acquire? If you are new to the crypto space, you may be unfamiliar with the humble beginnings of Bitcoin and the crypto world in general. Bitcoin is not only here to stay but also to remodel existing financial infrastructure and more.
If you think that Bitcoin is only impacting the financial sector, you may be in for a surprise. Blockchain-based models are slowly replacing outdated, clunky models. Crypto is an industry in itself. However, various aspects of its design and workings are making their way into the broader marketplace. This is set to increase, as even banks are beginning to rely on blockchain models.
The Future Is Tokenization
Tokenization became quite a trend during the 2017 bull run. It was, however, extremely premature and largely made up of opportunists. The space has matured to some extent over the years. There will always be opportunists and scammers in every industry. Wherever there is opportunity, there will simultaneously also be those seeking to exploit and manipulate it!
This is just a reality that needs to be acknowledged and accepted, as it will never change. Regulations are seldom for the true benefit of the investor, but eventually they do aid in sifting out undesirables. If you look at the incentivized economy we are currently so privileged to enjoy, you will note that any of these opportunities exist because of tokenization.
Projects and platforms are rewarding users with their native token, which would otherwise be impossible. Platforms such as Read.cash and Noise.cash have an investment pool, which is unique and not commonly seen elsewhere. Publish0x has a sponsorship model that compensates for the lack of its own token. There are, however, downsides to this approach.
In essence, true growth is limited, as the pool is only so big. The more users join Publish0x, the less current users can earn. Growth, therefore, has a ceiling, as well as an earning cap. Most users do not consider this dynamic because they are not looking at the project with a business-focused mindset. Projects such as Hive or Leofinance are uncapped because their native tokens are actually in users’ hands.
If everyone on the platform chose to upvote your post, you would generate significant income, as the only ceiling you would encounter is your ability to impress your readers. That’s what makes Hive and other Hive communities so valuable regarding earning potential. Essentially, your only restriction is securing upvotes, which are not limited to an earning pool model.
How Major Financial Institutions Are Embracing Crypto
The entities I have just highlighted are on the lighter side of the scale and very much still within the crypto world. JPMorgan has its own blockchain-based digital coin for payments. Facebook has been trying to get it right for some time, as have other larger companies such as Walmart. Crypto is no longer just about finance but also about utility, which is, in many ways, intertwined with finance.
Every business sector and niche has something to gain from blockchain adoption. For some, it is way more helpful and dynamic, with the ability to reshape and remodel certain industries. This is no longer an idea aligned to a store of value and value transfer. Once tokenization really takes off, utility will become the leading narrative, with Ethereum and other projects dominating.
How Traditional Businesses Are Leveraging Crypto
I recently posted an article about a vegan project that has its own token. The app enables vegans to scout out local vegan outlets and restaurants. Users can earn the token as rewards and loyalty points. The token is currently only available as an ERC-20 token, but I am sure that will be addressed in time, provided this initiative succeeds.
This is a prime example of how a new industry can gain even more exposure and recognition by utilizing crypto as a drawcard. In the 2020s, everyone enjoys earning free crypto. You may find that people begin diversifying with the occasional vegan meal to build up a holding in yet another altcoin! Many people like me are always on the lookout for more ways to earn free crypto.
This is at the heart of the incentivized economy. Rewarding users for their choices and loyalty. It’s a whole new way of doing business, and legacy businesses that do not embrace this new chapter of commerce will ultimately be left behind in the not-so-distant future.
The Rise of On-Chain Finance
Individuals and institutions are laying the foundation for a new financial system by entering alternative niches, such as on-chain finance, which extends beyond DeFi and decentralized exchanges (DEXs). In today’s economy, tokenized real-world assets (RWAs), stablecoins, and on-chain treasury products are creating an entirely new and exciting financial system.
This is also where projects such as Centrifuge (CFG) are expected to play an enormous role in the future. Centrifuge empowers users to bring real-world assets on-chain as collateral—something that has been only modestly explored in blockchain-based financial markets until recently. Yes, you could further leverage your home. However, Centrifuge and other on-chain services are taking this idea to an entirely new level.
How DePIN Is Transforming Physical Infrastructure
DePIN is another sector that bridges real-world assets and existing infrastructure with an on-chain blockchain-based model. Not only is DePIN creating new infrastructure, but it is also upgrading existing infrastructure models. This creates real-world utility, ultimately revealing how integral blockchain-based models can be in the 21st century. Furthermore, there is the aspect of monetization that exists within this model.
One of the most attractive aspects of DePIN is that participants can contribute bandwidth and computing resources, as well as additional data, in exchange for cryptocurrency rewards, typically in the form of a project’s native token. This too forms part of the incentivized economy. Essentially, it predominantly forms part of the economy of things, more commonly known as EOT.
Final Thoughts
The world is in the midst of an economic and commercial shift. There is simply no denying it at this point. Bitcoin and crypto have invaded the current system too much to be undone now. Adjust or be left behind is the message of this article. Being the last through the door is never the best approach. Just as being first is often considered too risky, being last is equally risky. The good news is that multiple big brands and names have already broken the ice.
The risk has been absorbed by pioneers such as Michael Saylor and other large corporations. The race has indeed begun; don’t get left behind! Thanks for joining me. All the best! See you next time!
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