How is the crypto and tokenization market outside of Brazil!

Por Cassio J. Krupinsk
Em 04/10/2022

A tokenization and cryptocurrencies are surely the most significant advances in technology after the arrival of the Internet, because of the breadth of possibilities they bring to business and to the way traditional investment products will behave.

Using digital currencies and tokens to buyOn the contrary, companies and individuals are discovering the advantages of applying cryptocurrencies in their daily lives in a variety of ways.

As a measure of its potential, the asset tokenization market is expected to grow by an average of 19% per year from 2020 to 2026 and make a jump from $2.3 billion to $5.6 billion in 2027.

This is an impressive number for such recent disruptive technologies and shows that they are coming into the routine of consumers and businesses to stay.

Brazil has a prominent role in this transformation, with initiatives coming from regular bodies to understand the applicability of tokens in the investment world, for example.

BLOCKBR, a web 3.0 native company, will talk a bit about the current crypto market abroad and how Brazil will lead this revolution!

HOW IS THE CRYPTOCURRENCY MARKET DOING IN THE WORLD

In November 2021, the cryptomarket surpassed the historic mark of $3 trillion and $5 trillion in 2021, which shows the strength of coin tokens.

Currently, bitcoin still accounts for just over 50% of all cryptocurrency volume that is transacted and ether (from the Ethereum network) comes in at 20%, but new digital currencies are emerging every day and an estimated 17,000 cryptocurrencies by January 2022.

The use of currency tokens is growing steadily, especially in international transactions because of the absence of bureaucratic hurdles and costs, but they are gaining increasing prominence as a high-volatility, speculative-grade investment product.

This is where attention needs to be paid to the launch of new projects tied to digital currency-backed companies – whether they have solid fundamentals, whether the associated markets have consistent numbers.

Therefore, regulation of the cryptomarket is already practiced in several countries and is looked upon favorably by experts.

While far from bitcoin’s original idea of decentralization, regulation can give legal certainty to investors and allow cryptocurrencies to grow in commercial and investment use and backed by sound projects.

WHERE IS BRAZIL IN THE DIGITAL CURRENCY MARKET

Brazil has a prominent position in the token money market: we are one of the top five markets in number of crypto investors, with 10 million people, according to 2021 data.

We are second only to the United States, India, Russia, and Nigeria. Although our participation in the financial volume is only 2% – around R$100 billion – it represents an increase of 400% in relation to 2020.

The adhesion of institutional investors and the increase in popularity, which will get a boost with the Cryptocurrency Law bringing more security for buyers, are the two main reasons to predict the growth of the cryptocurrency market in Brazil in the coming years.

THE FIRST STEPS OF TOKENIZATION ON THE WORLD STAGE

Cryptocurrencies and tokens are cryptoactive and created with the same technology, blockchains, but the similarities stop there.

Unlike digital currencies, which are a store of value and a more agile means of payment, tokens are a highly efficient vehicle for virtualizing deals with goods, products, services, and rights.

Tokens are the virtual representation of something you want to trade and became known with the creation of NFT, a token category for trading something infungible – that is unique, such as artwork, collectibles, and blockchain game resources.

NFT is a proprietary asset, and therefore we must differentiate it from tokens in general, as they are used for a variety of transactions, be it the sale of assets, participation in business projects, or investing in tokenized financial products.

This is one differentiation that already explains part of the success of business tokens: they enable more effective and profitable fundraising by putting the assets within the reach of a much larger number of people.

The technology is still young on the market, but has endless potential to monetize businesses in all sectors. The growing popularity of cryptocurrencies is one reason; more people interested in crypto-activities motivate companies to seek better results with tokenization.

Want to know why your company should invest in tokens for growth?

WHAT TO EXPECT FROM TOKENIZATION IN BRAZIL?

Despite being a recent business model in the country, we can say that tokenization is a means of offering has great growth potential ahead, as it brings together the convenience of state-of-the-art technology with a number of benefits, among them:

High level of information security on blockchains;
Encryption that strengthens prevention of cyber attacks;
Full availability of the offerings, because the blockchain does not close;
Fractionation of tokens, which attracts smaller investors;
In the agility of operations.

It is possible to tokenize all kinds of assets, tangible or not, from a technical and legal feasibility project. Some industries, such as real estate, have regulations that need to be aligned.

There are already a number of companies tokenizing assets to capitalize their operations and remunerating investors at great rates, such as wind energy tokens.

The popularization where cryptocurrencies are used as a means of payment used to buy tokens on selling and buying platforms like BLOCKBR’s marketplace.

Furthermore, with regulated cryptocurrencies and greater legal certainty with blockchain, the trend is for tokenization to grow even more in the sectors where it is already present and the pressure from markets to use the technology to help equate the regulations where they happen.

BLOCKBR Digital Assets
is a web 3.0 native fintech that brings together technological innovation and digital knowledge to transform physical assets into digital assets, in the process of tokenizing assets.

The supply of physical assets and tokenized financial assets, both current and new, is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.

We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.

Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?