Learn From The Past
Do you remember when Mike Novogratz and other influential traditional finance (TradFi) leaders began pushing Bitcoin and Crypto more aggressively? It was around the time FTX was a rising star, and nothing much was happening regarding Crypto valuations. What followed over the next year or two was a monstrous altcoin season, sparked by Bitcoin rallying from a $ 3K bear market bottom to a $ 69K top.
A similar scenario followed with the current cycle, BlackRock, and the introduction of ETFs. There is a lot of talk that tends to last a few years, and then, suddenly, an explosive move in adoption, followed by a surge in valuations. The concept of tokenization has been a popular topic on this blog for several years. However, the tokenization and RWA narrative have only really begun gaining traction in the past year or two.
This should serve as a warning sign to investors that the RWA sector is soon to experience significant growth. Coinbase has been discussing tokenization extensively, and so has BlackRock. If you follow the pattern, you will know what’s next. Financial markets, as well as many other aspects of life, follow patterns. Consider the traditional 4-year Bitcoin cycle, for example. Speaking of which, I believe it will soften significantly with the current cycle.
These patterns act as credible guides along the journey. However, don’t look for the exact week or month, as they often tend to provide false starts and even delays. This, too, is part of the pattern. When you can create turbulence, uncertainty, and know what to expect, at least to some extent, you can benefit from it. This is how financial markets operate. Another notable example is Jack Dorsey leaving Twitter to immerse himself in the world of Bitcoin.
Watch What They Do
Delays and appropriate usage of the patterns are designed for beneficial positioning. The news about Bitcoin is now out. Many who were cautious, as well as many insiders, shied away from the asset. However, the powers that be have now made it official. Yes, many who thought they were well-connected were excluded. However, news has now traveled down the grapevine. Everyone is now in or getting in.
Relying on information, data, and intelligence from those financially or “socially” above you is probably the most foolish thing anyone could do, and yet many who consider themselves intelligent do just that. The reason an individual or entity has the upper hand on you is that you are being leveraged. It is your “lower” position that facilitates their “superior” position.
The age of intelligence will create many influential individuals. Many will be previously unheard of and not very well-connected. The application of a comprehensive and well-rounded degree of intelligence in an age of intelligence will accomplish this. Understanding the eventual shift to tokenization will play an enormous role in this transition to power. Remember, it has taken some time for Bitcoin to arrive.
When I first began blogging about Bitcoin on some of my earlier blogs, it was a few hundred dollars. With a recent all-time high of $111K, the proof is in the pudding. Many will insist that no one could have known, and yet I was not the only voice declaring this future narrative. When it still appears unrealistic, or at least far away from being realized, it’s the best time.
Final Thoughts
The shift to tokenization is a little bit trickier than simply investing in Bitcoin over the long term. How can one truly benefit and profit from this momentous shift? That’s the question every investor and market participant needs to consider. The high tide lifts all boats dynamic is beginning to lose its charm as the digital asset realm continues to mature and expand. It’s getting increasingly more challenging to make the right calls.
The path may still be undiscovered. However, it’s an eventual destination, and anyone who makes the right calls will be well-positioned going forward. Tokenization and interoperability will play a significant role in the sector’s development over the next five to ten years. Such a considerable shift requires “smooth rails” void of issues and complexities. Don’t sleep on tokenization and RWAs! See you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in my receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.