How digital assets have revolutionized the way we build generational wealth

Ten years ago, if you asked someone what their plans were for building wealth, their answer probably would have been to invest for the 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 to investment opportunities.

Although generational wealth has historically been accumulated through traditional investment flows, a recent survey by CNBC Millionaire Survey found that 47% of millennials have 25% of their wallet invested in cryptocurrency. Even with such clear signs that cryptocurrency is pioneering a new way to build wealth for years to come, the survey found that only around 10% of U.S. millionaires hold more than 10% of crypto investments, 83% of which had none.

Evidence also shows that the widespread adoption of cryptocurrency has started to change the way the wealth management industry, including private banks, brokers, and wealth management companies, is adapting to the rapidly changing cryptocurrency landscape with pension funds start investing in crypto too.

Although cryptocurrency has become mainstream in recent years, the digital asset has come from humble beginnings. From 2008 when the domain name was registered, to 2009 when Satoshi Nakamoto sent Hal Finney 50 BTC as the first bitcoin transaction, the cryptocurrency has come a long way since its inception. By 2020, Bitcoin had reached many milestones, most notably breaking its 2017 record when it traded the $ 20,000 for the first time. In March 2021, its value reached $ 60,000 and in April some of the biggest brands in the world were accepting Bitcoin as a payment method. In September, El Salvador had become the first country to embrace bitcoin as legal tender.

Many of the industries that have provided investors with substantial wealth are those that have not been discovered or whose potential has not been exploited. A good example of this is growth stocks in tech companies going under the radar. like Shopify before they explode in value. Investors who were able to recognize the potential of this opportunity saw a massive return on their investment.

Even though cryptocurrency is quickly becoming mainstream news, it still has room to grow, with experts to predict bitcoin’s predicted value is poised to rival gold, potentially reaching $ 100,000 over the next five years.

The appeal of digital assets lies in many factors, one of the main ones being that they are decentralized i.e. there is no central authority or controlling entity. which can alter or apply any form of censorship on your assets. Cryptocurrency isn’t the only digital asset born from the blockchain, as NFTs (non-fungible tokens) have also seen a major upward trend in popularity over the past year. NFTs allow creators to sell works of art of all kinds (photos, video or audio) which are all stored on the blockchain.

One of the pioneers in the DeFi space is Baanx, a company that is building the infrastructure required for mass adoption of digital assets. By helping consumers and businesses mine cryptocurrency, this fintech aims to change the way the world interacts with their crypto investments and create more use cases for their digital assets. One example is the recent FCA endorsement that Baanx received for its Cryptodraft product that will allow users to borrow according to their crypto wallet.

Founded in 2018 by a collective of innovators with a cumulative experience of 100 years in the banking industry, Baanx was built with the intention of harnessing the potential of digital assets and their inherent utility. Fast forward to 2022, and Baanx has already partnered with industry leaders including register and Tezos. Going 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 BXX utility token, enables users to send, spend and manage their crypto efficiently and securely, while receiving rewards for these activities and for using the platform. form. The token rewards users with a distribution of network fees based on the amount of BXX held and will allow users to profit from Cryptodrafts in the future. Users can wager tokens for liquidity rewards and earn BXXs for wagering stable coins.

For those looking to build generational wealth, investing in digital assets offers a new, more lucrative and secure alternative to investments made from traditional banking. As companies like Baanx continue to push the boundaries and create even more use cases for crypto investing, savvy investors will likely benefit from an early investment.

Sylvia B. Polson