Digital Assets: Multi Hundred Trillions Of Dollars

in LeoFinance2 months ago

How often have we heard people ask if it was too late to get involved in cryptocurrency? People look at where the prices are, compared to where they started and conclude they missed the run. After all, Bitcoin, as an example, already went from $3,000 to over $50,000. Certainly there is no more upside.

This viewpoint is often countered with the mindset that this is still very early in the game. The numbers we see now are a fraction of what they will be. There is much higher side for everything since very few people, as compared to the whole, are actually involved.

Network Effect is going to be the driver to much higher levels. Since there are still near 5 billion people online who are not utilizing digital assets, there is a ton of room for growth.

What is also missing, at this moment, is business people. They are the true drivers of innovation since they bring money to the table. This fosters development which can feed into mass adoption. It is less than a year ago that we saw the first wave of Wall Street money start to filter in. This was the reason for Bitcoin's enormous run.

With a market cap of $1.5 trillion, the cryptocurrency world is just getting started. Raoul Pal, the noted macro-economist and strong Bitcoin advocate, revealed this sentiment in a series of Tweets.


Perhaps this helps to clarify how early in the game we really are. It also shows the opportunity that is confronting humanity at this moment.

Does $1.5 trillion really compare to hundreds of trillions of dollars?

People look at the situation through the lens they know. They often embrace numbers they can comprehend. Billions is hard for most to imagine, let alone trillions. Unless it is something to do with government or national/global stats, we simply do not deal in these volumes.

However, they are lurking out there. The present numbers we see are going to be drastically exceeded. Cryptocurrency is not just adding to the economic pie, it is actually recreating things.

What cryptocurrency brings to the table is the ability to develop a more efficient system. We are seeing the beneficial parts of our present financial world being merged with new models that target the unproductive areas. It is hard to see right now since it is so early but that will change in coming years. As development takes place, we will see the integration into something that can increase productivity a great deal.

Our present monetary and financial system is archaic. It is stuck in the proverbial Stone Age compared to where we are going. We are still trying to operate with tools from a physical world when we are now in the digital, moving towards the virtual.


Few realize how powerful the "tokenization of everything" really is. They also overlook how much wealth can be created.

The last few days saw news made with Jack Dorsey tokenizing the first Tweet ever sent. This generated bids that entered the millions of dollars. When that deal is completed, Dorsey will have a few million dollars that he did not have before. That is a transaction that only took place because of tokenization.

Obviously Dorsey had the Tweet all these years. What he didn't have is the ability to monetize it. By creating a NFT tied to that Tweet, he was able to put it up for auction, just like any other collectible.

Notice Pal's Tweet and the evolution it covered. He mentioned about people trying to wrap their heads around Bitcoin, then DeFi, and now NFTs. The first one had a bit of a warm up period but the later two burst onto the scene. DeFi exploded in 2020 and, so far this year, NFTs are the rage.

What innovation will be on fire next year or the one after that?

This shows how quickly things are moving. It is also illustrates the expansion of opportunity for individuals. With each new iteration, there are more ways for people to benefit.

As stated earlier, we are still very early in this system. Through tokenization, that removes the middle man. Instead of trusting powerful figures or entities, we deal direct. This means that transaction costs go down which tends to drive the number of transactions up.

Here we see the ability to generate enormous sums of wealth at the individual level.


Many talk about what the future of work will be with the potential disruption to jobs due to automation. The answer to that is we will, for the most part, be compensated through this new system.

Imagine having a system whereby one is able to pay some bills through the tokenization of volunteer work that is done. Or doing the same thing as a result of one's fandom of a particular sports team. In a world where everything is tokenized, this is possible.

It all requires buildout of course. Yet, consider the person who likes to travel. How would things change if this person could pay for his or her coffee using airline miles or hotel points.

Ultimately, compensation will come as a result of all we do. Each day, we are creating two things simply through out operation in this world: energy and data.

Right now, people are not compensated for either of those. Energy that comes of the body is obviously no captured. Nor is it from moving around as we progress through our day. This could all change decades down the road.

As for data, we know this is being collected. We are also well aware that there is no compensation to us as individuals. Tokenization will also create a situation where this is radically altered.

Then we couple this with the ability of our devices to generate data, without our input. This constructs a totally new model whereby each person is effectively a data miner. In this era, the value of data is well known.

With tokenization, there will be a market for all of this to be traded or collateralized. The later allows people to get money to use for other financial purposes without giving up the underlying asset.

Think about that for a second: having the ability to monetize your data without ever giving up control of it or selling it.

Pal is right. We are going to see a few hundred trillion dollars in tokenization over the next couple decades. This is going to generate the greatest amount of economic prosperity, something that dwarfs the results of the Internet. However, unlike that era when on small handful of people benefited, we are now in a time when anyone can be involved.

Hopefully it is becoming clear how we are entering the Age of Abundance.

If you found this article informative, please give an upvote and rehive.

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I am not surprised given how outdated Wallstreet is. They are generally the last people to jump in even on stocks that are changing the system. However I think the money moves fast once they jump in as the retail chases after.

The digital world isn't going away and it will definitely expand. Better late than never for anyone who is learning about it now.

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The mind is the hardest thing in the world to change.

Imagine that coupled with the herd mentality. That is what we see on Wall Street.

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I like you point that people can't really wrap their head around a billion dollars, so talking about a trillion is all together foreign to a lot of them. Myself included for the most part. I think I have a better idea of what a billion looks like than some, but I still don't think I could fully comprehend what it would look like it were something I owned or something I was directly invested in.

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The reality is most still can grasp a million if truth be told. It is why most, if asked how much money do you want, will say a million dollars. They have no context of what it really is.

The reality is the value of what is being generated is unbelievable. This will translate into much higher numbers over time. For example, it takes a lot more money in R&D since we are indulging in more advanced areas.

All this adds up to unbelievable numbers, ones that when viewed in isolation do not tell the entire story.

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Very interesting. The growth really is pretty astonishing. I remember back in 2017 there were all of these vapor projects coming out. Now there are just as many coming out, but the actual number that are vapor is pretty small compared to the legitimate blockchain solutions that we are seeing.

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Very true. We are starting to see actual use cases for what is being developed. This should help adoption since we are seeing the options that people have increasing. I think the result will be a lot more wealth created especially for the users/participants, totally changing the entire economic structure that we are operating under.

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I think that would be really cool. A shakeup is definitely in order to some degree!

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Think about that for a second: having the ability to monetize your data without ever giving up control of it or selling it.

This is what hive has effectively been able to do for people who brings their contents here, to still own it and yet still be able to monetize it. Nowadays we can monetize on all format by even using the second layer applications

Well they can monetize their content but not their data. That is still outside our reach.

Hopefully, in the future, that will be the norm. It is a great goal to have.

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It is true that people view the numbers that Bitcoin has reached as miraculous and cannot exceed that.
Just as they imagined that 19 thousand dollars is a historical figure that cannot be repeated.
But emotions have a big role in controlling decisions, so anyone who wants to invest must invest with money he does not need for at least five years in order to be able to control emotions with market fluctuations.

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It's hard to guess what will be next, at least we will be aware sooner than most because of our interactions here on Hive.

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How much longer can we hodl Hive when the main coins rise? What is your plan if you will to share?

I am not concerned about what other tokens are doing because it is more than financial. Watching pricing does not tell the story. I watch the development, that is most crucial. It also tells more of the picture.

A lot of tokens have a nice story but there is nothing to them. They will eventually collapse in my opinion.

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It looks like polkadot got the right developement but no real app. I am not aware of anything like steem and hive. Is there something to look at?

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The Age of Abundance with the giant hurdle of government in our way. Hopefully the innovation will overwhelm that at some point and the real people of the world can get down to the business of solving our problems. Feeding the masses, cleaning up the planet, sheltering the homeless, and allowing the productive and creative minds to do what they do best, create and produce.

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There is no doubt that is a nice goal and one that is achievable. We can see development picking up to the point where the governments cant keep track of it all. The second they come up with something, we release something else that puts them behind again.

This is how the age of government will start to wane.

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Most of the ones looking at crypto are doing that from a short term perspective. When you get a macro view and at least a glimpse of understanding you'll realize how much from this world crypto will eat. The lottery perspective of it it's gonna make many of such people get off this train too soon.

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I agree. Few see the bigger picture, or even a portion of it. They are stuck in today and right now. They cannot envision where things will be 3 years from now.

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I was in that position too. Luckily I got a bit of perspective and am confident this grain of education/understanding will come at hand in bettering many things around me.

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Well, we are seeing clear evidence of the superiority of decentralized finance, cryptocurrencies and NFT.

Soon we will see everyone tokenizing something to add value, perhaps a famous painting or an entire city.

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Learn how to earn FREE BEER each day by staking your BEER.

Bang, I did it again... I just rehived your post!
Week 47 of my contest just can now check the winners of the previous week!

I was just about to write a post about this tweet selling matter before I read this post. Ive discovered that tweets can be made into NFT's, technically, tweets are immutable in the sense that they cannot be edited, though they can be deleted(im not sure if twitter keeps data of deleted tweets in their backend), they are also time stamped, every tweet is unique in the sense that no two tweets can bear the same attributes. This makes it an NFT when all that data is parsed into the blockchain, from here it can be put up for sale. I checked out the tweet market and people are beginning to sell myriads of tweets already....its super interesting....but ofcourse I still have my why will I want ownership to some tweet by purchasing it? And many more. After getting not very far with the questions i came to a conclusion,...dont try to understand it......just accept it....(a line from TENET 2020 movie)

it feels good to be part of this revolution even though people will inevitably try to ruin things like they do :)

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I agree with you but it is all highly confusing if you haven't done this all before. The average person in the street will be lost and will need help getting involved with things like DeFi. I realized how little I know tonight and will try again tomorrow as it is highly technical to understand even with the tutorials.

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I think that depending on each person’s point of view, it’s never too late to enter this world. However, the sooner you participate (not only on the financial issue, but in terms of knowledge) in it, the better chances of profit you will have.

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It is always not too late to join the crypto world but it requires patience and experience. I’ve been in crypto since 2012. I was aware of the BTC price but at that time I was a kid and just had a knowledge that there is a currency that is digital and growing. I haven’t invested as I was scared.
But last year I took the risk with Leo and Sportstalk token.
With Leo giving the ultimate reward and sports talk doomed my investments.
But this was a great experience. I am happy to learn from the failures.

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