How Digital Assets Have Revolutionized the Way We Build Generational Wealth
January 11 2022 - 12:58PM
NEWSBTC
Ten years ago if you asked someone what their plans were for
building wealth, their answer would have likely been investing
long-term in real estate, the S&P 500, bonds, private equity,
or hedge funds. Fast forward to 2022 and the dawn of DeFi has
revolutionized the way people seek to build wealth for the future,
with digital assets now providing a new alternative for investment
opportunities. Although generational wealth has historically been
accumulated through traditional investment streams, a recent survey
by CNBC Millionaire Survey found that 47% of millennials have 25%
of their portfolio invested in cryptocurrency. Even with such clear
signs that cryptocurrency is pioneering a new way to build wealth
for years to come, the survey recorded that only about 10% of
American millionaires held more than 10% in crypto investments,
with 83% holding none. Evidence also shows that the widespread
adoption of cryptocurrency has started to shift the way that the
wealth management industry, including private banks, brokers, and
wealth management firms, is adjusting to the rapidly evolving
cryptocurrency landscape with pension funds starting to invest in
crypto as well. Although cryptocurrency has sprung into the
mainstream over the past few years, the digital asset came from
humble beginnings. From 2008 when the domain name bitcoin.org was
registered, to 2009 when Satoshi Nakamoto sent 50 BTC as the first
bitcoin transaction to Hal Finney, cryptocurrency has come a long
way since its inception. By 2020, Bitcoin had reached many
milestones, including smashing its 2017 record when it traded in
the $20,000s for the first time. March of 2021 saw its value reach
$60,000 and in April some of the world’s biggest brands were taking
Bitcoin as payment. Come September, El Salvador had become the
first country to adopt bitcoin as legal tender. Many of the
industries that have provided investors with substantial wealth
have been those that were undiscovered or with untapped potential.
A great example of this is growth stocks in tech companies flying
under the radar like Shopify before they exploded in value.
Investors that were able to recognize the potential behind this
opportunity saw a massive return on investment. Even with
cryptocurrency quickly becoming conventional news, it still has
room to grow, with experts predicting that bitcoin’s forecasted
value is on track to compete with gold—potentially reaching
$100,000 within the next five years. The attraction to digital
assets lies in many factors, a major one being that they are
decentralized, i.e. there is no central authority or controlling
entity that can tamper with or enforce any form of censorship upon
your assets. Cryptocurrency is not the only digital asset born off
the blockchain as NFTs (non-fungible tokens) have also seen a major
uptrend in popularity over the last year. NFTs allow creators to
sell art of all kinds—photos, video, or audio—that are all stored
on the blockchain. One of the frontrunners in the DeFi space is
Baanx, a corporation building the infrastructure required for the
mass adoption of digital assets. By helping consumers and
corporations harness cryptocurrency, this fintech is aiming to
change how the world interacts with their crypto investments and
creating more use cases for their digital asset holdings. An
example of this is the recent FCA approval that Baanx received for
it’s Cryptodraft product that will allow users to borrow based on
their crypto portfolio. Founded in 2018 by a collective of
innovators with a cumulative experience of 100 years in the banking
sector, Baanx was built with the intention of tapping into the
potential of digital assets and their inherent utility. Fast
forward to 2022, and Baanx has already partnered with industry
leaders including Ledger and Tezos. Moving forward, the company
aims to replace traditional fintech services by bringing trust and
transparency to the digital asset market. Baanx’s infrastructure,
powered by its native utility token BXX, allows users to send,
spend and manage their crypto efficiently and securely, all the
while receiving rewards for these activities and usage of the
platform. The token rewards users with network-fee distribution
based on the amount of BXX that is held and will allow users to
enjoy Cryptodrafts in the future. Users can stake tokens for
liquidity rewards, and earn BXX for staking stablecoins. For those
looking to build generational wealth, investing in digital assets
provides a new, more lucrative, and more secure alternative to
investments made from traditional banking. As companies like Baanx
continue to push the envelope and create even more use cases for
crypto investments, savvy investors are likely to benefit from
early investment.
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