Asset Tokenization: The Holy Grail of Eradicating Wealth Inequality 

by | Nov 1, 2020 | Industry | 0 comments

The cruel cycle of wealth inequality is unceasingly causing havoc worldwide as the gap between the haves and the have nots widens. Truthfully, a few individuals’ massive accumulations of wealth seem to manipulate political systems and markets globally. For example, just 1% of the US population owns 42.5% of the national wealth. Unfortunately, other countries across the globe experience similar trends. 

Asset tokenization is an ideal tool for fighting the wealth inequality problem by facilitating the ownership of the best-performing asset classes. This allows a larger pool of global investors to participate in wealth creation and partially own profitable assets, like properties.  

Besides, a blockchain-based accounting system and combined with security tokens, can bring accountability and transparency in the financial sector. By leveraging this strategy, financial institutions will be persuaded in marketing their products to customers based on their preferences and interests. Likewise, customers will enjoy good commissions and profits. 

Tokenization of Assets

Tokenization enables fractional ownership of assets, which can solve the wealth inequality issue. Remarkably, the tokenization of real-world assets, like real estate, venture capital, bonds, equity, art, and commodities, will play a key role in empowering the majority of the global population to be part of this high-valued asset economy.  

Convincingly, ownership is needed in any growing economy to allow people to increase their wealth by purchasing and holding assets. This promise is fulfilled through tokenization.    

In the case of debt, tokenization can fractionize it into smaller token-tranches. On top of this, markets for these tokens are available and accessible, enabling investors to trade them 24/7/365 at a discount to par value if they wish to exit their investment plans. 

Blockchain enables smart contracts to be implemented, whereby the agreement terms between the buyer and seller are converted into computer codes. They can be coded so that they allow the automatic execution of subsidiary requirements, such as a loan roll-over, as this will prevent taxation at expiration. 

Blockchain Enables Direct P2P Investment

Blockchain enables direct P2P investment between citizens and government investment establishments. This guarantees transparency since all stakeholders can know the amount of funds received, the number of bonds issued, and the funds’ real beneficiaries. 

“The government and the elites want to have all the wealth, so they manufacture inflation and the wealth flows to the top. […] And that’s why we have the greatest wealth inequality in the history of humanity. Bitcoin helps solve that because now we can opt-out as an owner of assets from that fiat system,” said Mark Yusko, the CIO, and CEO of investment advisory group Morgan Creek Capital Management.    

The World Bank estimates that 1.7 billion people worldwide have been denied access to loans neither do they have bank accounts. Through Decentralized Finance (Defi), they will access banking services, like loans, which is essential in addressing the wealth inequality menace. 

Tokenizer Blockchain Banking Platform

The Tokenizer is a blockchain investment banking system that champions accessible, transparent, and safe financial services. We believe that everyone deserves equal access to investment and fundraising opportunities. That is why we are democratizing access to capital for investors and fundraisers by making investing and fundraising efficient, safe, and accessible to everyone.

Are you in need of raising funds or investing in security tokens? Apply to raise funds through Tokenizer by filling this application form. If you want to invest in security tokens, sign up for a Tokenizer Investment Account today, and if you want to liquidate and trade-in Asset-Backed Tokens, we have a decentralized exchange designed for you! You can also contact us to order a metallic crypto card at $149 only.

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