The FUD Is Over: Further Evidence

A few weeks back, I wrote a post calling the FUD over and that we were in a different message cycle.

https://busy.org/@taskmaster4450/i-am-calling-it-the-fud-is-over

My basis for this conclusion was based upon some of the coverage we were starting to see. The big one was a Time Magazine issues that shed some positive light onto cryptocurrency. This was a remarkable change of what we saw throughout all of 2018.

There is further evidence that we are starting to see the media shift gears and start laying the groundwork to bring in investors.

Marketwatch.com is one of the leading market websites. This is not a fringe site or one that deals with only technology news. It is far from a geek site instead being read by many mainstream investors.

Of course, the site was non-too-favorable to cryptocurrency throughout 2018. They fell in the same category as the rest of the mainstream sites.

This is now changing. Today, I saw an article that really caught my attention.

It was discussing the idea of digital assets representing other assets which then are tokenized. We know this as "Security Tokens". The idea is to take real estate, art, or partnership agreements and tokenize them. This makes the market a great deal more liquid while reducing transaction costs. Anyone who sold a piece of real estate before knows the cost of not having that liquidity.

Non-liquid assets require a premium to sell.

Another big factor in this is the idea of fractional ownership. What this means is that people can own a small piece of the asset. For example, a painting is now sold either to an individual or group of individuals. In this realm, there is not the idea of owning 1% or 001% of the assets.

This is all solved with fractional ownership. With tokens, one can purchase to whatever decimal point the token is issues at. We can buy, for example, .001 STEEM. The same will hold true for the Security Tokens.

The fact that a site is promoting the idea of tokenization in a positive light should come as no surprise. Throughout 2018, most of the Wall Street trading houses/banks set up trading desks for cryptocurrency. Mark my word, they did not do this to trade some guy 20 Bitcoins. They are not even doing it to sell the California Pension Fund a bunch of cryptocurrency.

Instead, I can assure you the reason these institutions did this so they can offer Security Tokens. There are trillions in real estate, art, and intellectual property that all can be tokenized. Wall Street wants in on this revenue stream. The commissions will run into hundreds of billions of dollars.

Since we are going to see this regulated, it is not likely to end up on the DEX market to start. Most of these deals will go through the traditional players. This also means that, in the United States at least, it will be offered only to "accredited investors" (read rich). This is something that is not good for humanity but is a step we will have to go through.

We really are in the early stages of the use of tokens and what we can do with them. I feel that we will see uses in place 5 years from now that are not even on our radar at the moment. Nevertheless, in the meantime, we see tokens being designed to replace what we already know.

Attention like this is going to pull everything up with it. Just like the FUD crushed everything associated with cryptocurrency, the positive coverage will lift all ships. We will see the bull run again at some point. The difference is we are seeing development starting to catch up with the message.

Thus, I foresee 2019 see different headwinds for the industry. It will be based more upon issues that are serious threats as opposed an orchestrated attack. The FUD is over and the message in the mainstream will end up being a tailwind at some point in 2019.

The bottom line is we did not see these type of stories on the mainstream sites in 2018. Yet, 2019 is proving to be much different.

To read the marketwatch article.

https://www.marketwatch.com/story/heres-an-argument-for-tokenizing-assets-on-the-blockchain-2019-01-18

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