The crypto market has an image problem.
Because there are thousands of cryptos available… and most of them are not worth the ones and zeros they’re printed on… the crypto-curious have turned away from the sector.
That’s no good… because it’s causing many investors to miss the crypto sector’s biggest opportunity today…
Security token offerings.
Now, cryptocurrencies are speculative instruments that are sometimes worth playing… and sometimes not.
Security tokens, on the other hand, represent real assets with real value. They have extraordinary wealth-creating potential.
So let’s look at the difference between cryptocurrencies and security tokens… and, more importantly, why tokens could be the biggest wealth-building opportunity for years to come.
Secure Your Wealth
Both cryptocurrencies and security tokens are built on the blockchain.
A blockchain is a technology that stores transaction records across multiple computers. That ensures the records cannot be changed retroactively without altering subsequent blocks and gaining network agreement. It’s decentralized… which means no one entity controls it.
But that’s all that cryptocurrencies and security tokens have in common.
A cryptocurrency, like Bitcoin, is a fiat currency just as the U.S. dollar is a fiat currency. “Fiat” means it’s an accepted currency because someone says it is… not because it’s backed by a commodity.
In the case of the U.S. dollar, the government says it’s a currency, and we all accept that the dollar is America’s currency. The dollar is also legal tender, which means the government accepts dollars, and only dollars, when you pay your taxes.
There’s nothing backing any fiat currency… not the dollar (which years ago was backed by gold)… and not any cryptocurrency.
The only value a cryptocurrency has is what someone will pay for it – in dollars, euros, yen or another cryptocurrency.
Cryptocurrencies don’t have any intrinsic value. But neither does the dollar.
Technically, the dollar is said to have intrinsic value because it’s backed by the full faith and credit of the U.S. government… at least as far as paying interest and principal on Treasury-issued debt is concerned.
Again, cryptocurrencies are great instruments for speculation. Their value can go up a lot if people are willing to pay up for them. But they can collapse if enough people decide they want to sell them to get another currency in their pockets, like dollars.
Security tokens are a totally different kind of asset. Unlike cryptocurrencies, they are subject to federal laws and are regulated by the Securities and Exchange Commission.
They give investors a brand-new way to own shares of businesses or many other income-generating assets… on the blockchain.
These tokens represent a portion of ownership in the companies that issue them – just like the shares you buy in the stock market.
But with tokens, you have the chance to get in on the next generation of fractional ownership. These tokens are digital contracts that can confer fractional ownership of any asset, like real estate, artwork or a building. They’re built on blockchain technology, which makes them safe and secure.
And one of the hottest areas where tokens are taking off is private equity’s multitrillion-dollar foray into private credit.
This gives average investors access to private market investments previously available only to institutional and ultra-high net worth investors.
Titans like JPMorgan Chase and Hamilton Lane (an investment management firm with $824 billion in assets under management) are already diving headlong into the tokenization of credit assets.
Hamilton Lane just launched the second of three planned tokenized funds, its Senior Credit Opportunities Fund, which is packed with high-yielding, floating-rate senior secured loans.
Because of tokenization, the minimum investment in this fund is $10,000 – much lower than Hamilton’s typical $2 million requirement.
That’s just a taste of what security tokens are capable of.
And now… you have the chance to get in on the ground floor of a market with immense growth potential.
The security token market could be worth trillions in a few short years. And it could be 10X more valuable than the entire crypto market.
As with any early investment… when you get in ahead of the crowd… it’s an enviable position to be in.