Bitcoin Independence Day... lets talk market trend reversal, asset tokenisation and institutional money.
And by 'independence day", I do not mean the fall of bitcoin, I mean the decoupling of cryptoasset market values from Bitcoin's as a result of the new field that is about to emerge in blockchain.
Now, I know this is a long post, but go with me here. we need to set some context.
Everyone wants to see the bulls return. We want to the see the overall downtrend of total market cap reverse into a clear and steady (or maybe not so steady) uptrend. In order for that to happen (in its simplest form) we need "NEW" money to flow into the market. The majority of us investors that are here now, have been here since or before the huge bull market of December-Jan 2017/18. Many are now bag holders and most (I suspect) have already invested the majority of what they are comfortable with. Importantly, A LOT of people have been burned over the past 2.5 months, and so "get-rich-quick" money from the general public who jumped on the FOMO bandwagon and pumped the TMC to 850 billion likely will not be back any time soon. The volume of "new" money being generated from those of us still in this market that are dollar cost averaging new fiat in as we receive our fortnightly paychecks is not enough to significantly shift the market any time soon IMO.
So where is the next significant wave of "new" money going to come from then? The answer is institutions; and fortunately for us, insitutional volumes will far excede the volumes we saw during the last bull run. The questions are WHEN?, which will be determined by regulation; HOW?, determined by the platforms currently being developed and; WHY? what will drive institutions buy in?
Regarding WHEN? Given this will be highly correlated to national and global regulations, knowbody really knows, however I suspect it will be dependant on the ability of new projects to develope agreements with governing bodies such as the SEC around regulatory frameworks. So for all of you carrying on about how regulation is the worst thing and that its going to kill crypto, I think you need to realise that governments WILL win that battle, and the sooner we realise that regulation is for the most part inevitable and the sooner we get on with it and crytpo becomes legitimized as a result, the answer to the question of WHEN will be a whole lot clearer.
Now, getting into the real purpose of this post. The question of HOW?
Before I get into this, lets get something out of the way. This sub is for discussing the broad sprectrum of cryptocurreny and yes that includes specific projects. Whether or not you see potential in the project I will mention, you should at least educate yourself about the emergence of this sector in the crypto space. So lets avoid any "Shill post" bullshit, which I encourage to be downvoted. I want this to start quality discussion about the overall topic of asset tokenisation.
For this discussion I am going to use The Jibrel Network as the benchmark. FULL DISCLOSURE! Yes I own JNT. By no means would I be regarded as 'big bag holder', and that goes for all of my crypto holdings as I do not have the disposable income to invest more than I currently have done, although I wish that I did as I'm as bullish about this space as you can get (mainly because of the whole emerging sector discussed in this post).
We have heard murmurs of asset tokenisation for a little while now, and perhaps the most upfront media we've seen was the discussion by Kevin O'Leary on CNBC about asset based coins a couple of days ago. Link here if you missed it- https://www.youtube.com/watch?time_continue=58&v=IcT4-ddkgqc
Firstly for those who are unsure, what is asset tokenisation?
To explain this I'm going to paraphrase some comments made by Talal Tabbaa (co-founder of Jibrel Network) as I think he explains this concept very well.
Firstly, examples of assets that can be tokenised include (but are not limited to) things such as currencies, bonds, non-listed equities, commodities, futures and also real estate as mentioned by Kevin.
Tokenisation put simply, is the conversion of the underlying value of an assets into a single, onchain entity (that being the token).
Currently, liquidising all of your assets and putting them on the blockchain is not a good thing to do because although cryptocurrencies are the by far the best way to transact value, they are a very poor store of value. By giving an example, why would you want to convert your 100 million dollar asset into a token that could be worth half of what it current value in 1 weeks time due to market crash?
This is currently changing, through the developement of projects such as The Jibrel Network. This project has developed a way that allowes tokenised asset to hold their intrinsic value through a real world asset backed system.
At this point most people's immediate reaction is, well how is something like this any different from USDT? The answer lies withing the architecture of the onchain solvency. Everybody knows there is doubt that surrounds USDTs ability to backup what they have sold. The difference with Jibrel Network is the transparency of onchain assets through the use of JNT (the solvency token for Jcash) as a backing. They will also be audited by PricewaterhouseCoopers (PwC) which gives them enormous legitimacy. see: https://www.pwc.com/
Now Im not going to go into the intricacies of the tokenomics behind Jibrel Network because I want this to be more about the process of introducing assets to the blockchain and less about the specific project.
The next big question is why will institutions invest and how will this lead to market independence?
Current assets are regulated, have stability and are insured, however lack the transaction properties of crypto. If companies are able to give their traditional assets the transaction properties of cryptocurrencies which include things such as control (through in-built smart contracts), simplified transfer and reduced/negated fees (through removal of extra parties, streamlined transfer (between different governing bodies) and more while maintaining all the current advantages of traditional assets then the choice is a no brainer...
The process of tokenising assets is both the BRIDGE AND REASON that allows institutional money to enter the crypto space.
Institutional money WILL NOT enter via speculation or as a result of the emotional drives that we have seen drive the market until now. It will enter when it gains use case value that will provide companies with increased productivity and help solve real world business problems in whatever field they are a part of.
With the emergence of these asset-backed tokens in the market, the value of these projects will be entirely independant of what cryptocurrencies like Bitcoin do, beause they are backed my stable and independant assets. This is a whole new tree (metaphore for 'purpose') being grown on the blockchain field.
.................... More information.
Consider this my Shill. Attack me for it but im purely stating facts... In terms of The Jibrel Network, I have only scratched the surface of what they will be implementing in the next 12 months. With the aim of acquiring a banking license to become a fiat to crytpo bank, the imbedment of smart contracts within CryDRs for business dealings and regulation abidance, the recent announcment of a $250 million partnership to pilot Jcash in the UAE and more, their pontential is limitless.
There is plenty of information out there for you to research to gain understanding about the project and partnerships. I will post some links below. Also Jibrel Network is not and will not be the sole provider for this space, and they have even stated multiple time that they believe it is a huge space with room for many. I believe comments like that show the integrity of the developers. I personally have very very high conviction on this project.
If you are interested in other projects that aim to tokenise assets or create stable coins checl some of these out- Polymath, Havven, TrueUSD MakerDAO and a few more. (please dont associate JNT with a stable coin, its ceiling is limetless DYOR and by no means are these projects identical to Jibrel Network)
All the best for everyone's investments.
....................... Usefull links.
I'm Sure many of you have seen all of these before.
Article about mass adoption of blockchain- https://www.forbes.com/sites/suparnadutt/2017/12/18/dubai-sets-sights-on-becoming-the-worlds-first-blockchain-powered-government/amp/
Boxmining Interview with Talal Tabbaa of Jibrel Network. This details the tokenomics and their willingness to work with regulators- https://www.youtube.com/watch?v=IGWuBkGYGoE
Jibrel Network SubReddit (This has lots of good discussion)- https://np.reddit.com/r/JibrelNetwork/
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