2020–2030 Digital Asset Outlook: A Look at All The Possibilities

Although cryptocurrency and digital assets have been around for more than a decade now, it was only recently that they gained so significantly in popularity and started becoming mainstream. The digital assets industry has only gotten started, and in the future, one can expect a revolutionary transformation in the market.

The Present

The innovations in blockchain alone could potentially become the greatest inventions of the decade. Identity management systems, cross-border payments, smart contracts, autonomous marketplaces, decentralized information management, supply chain monitoring; are some, if not all, applications of blockchain technology that are widely recognized today.

In the future, blockchain could well transform how the world works in areas like digital voting, transparency in tax regulations and compliance, medical recordkeeping, rights of employees, equity trading, Internet-of-Things (IoT), etc.

So yes, in a nutshell, blockchain applications will bring about a revolution, but it will not be limited to that alone.

Digital assets will bring about their own breakthrough concepts and ideas as well. Here’s looking at the possibilities of digital assets in the current decade, 2020–30.

A recent study revealed, as shown by Google search trends, that since mid-2019, there has been an increased interest of the people in searching for digital assets. And this was not limited to common people alone; it also included governments and central institutions worldwide.

Indeed, the market for digital assets looks more promising than ever, with a broader pool of people and investors involved. The market is still small and only expanding, but this certainly indicates how bigger it can get in the future — from tokenization to synthetic assets, and even NFTs.

Let’s explore some of these ideas.

Tokenization of assets

You can divide your assets into various tokens and obtain value for them individually, resulting in fractional ownerships. As a result, when buying or selling assets like property, land, etc, you can make use of the tokenization process. It will not only result in faster settlements and increased liquidity, but reduces costs as well.

Tokenization eliminates the need for a middleman and also allows for more investors due to fractional ownership. From real estate and property to market commodities, equity shares and even physical goods, you can tokenize several physical assets. However, how further tokenization could evolve would depend on the regulations placed on it in each country.

Programmable money

Bitcoin is one of the most prominent examples of programmable money. While Bitcoin has been the subject of several criticisms and even bans on crypto trading in many countries, the interest in such a digital currency has not diminished, which is why many governments across the world are now looking to launch their own Central Bank Digital Currency (CBDC).

Several banks have already introduced programmable money. For instance,only recently JP Morgan Chase announced the launch of the JPM Coin, a digital token of the bank that would be used to seamlessly settle payments between its clients.

Programmable money has several advantages such as reducing the cost of cross border or cross-currency transactions and allowing for more financial freedom.

Synthetic assets

Synthetic assets refer to a set of assets that have the same value as other assets. They may or may have the same characteristics as a different asset, but they provide the same financial benefits. Examples of synthetic assets include derivative products like futures, swaps, and options that could be combined to simulate underlying assets like stock, bonds, fiat currencies like the US dollar, commodities like gold and silver, interest rates, etc. It provides worldwide access to investors by not limiting them to their locations. The future for synthetic assets looks extremely promising as it will enable people to trade both traditional and digital assets without needing to own any commodity.

Fundraising

The future

With mass interest in cryptocurrencies increasing with each passing day, the future of digital assets looks bright. It will not only bring forward more people in the financial markets but also solve various problems related to financial inclusion and inequality. This will definitely be the decade that will be known for the transformation of digital assets. Join us at XCarnival to know more about digital assets and how you can benefit from them.

XCarnival Official