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. DeFi was born in 2022, and it has changed the way that people look to create wealth for the future. Digital assets are now an alternative to traditional investment opportunities.
CNBC Millionaire Survey recently found that while generational wealth was historically accumulated via traditional investments, 47% of millennials now have 25% invested in crypto. The survey found that just 10% of American millionaires had more than 10% invested in cryptocurrency, while 83% did not have any.
The evidence also suggests that widespread adoption of crypto has begun to change the way the wealth management industry (including private banks, brokers and wealth management agencies) adapts to the changing cryptocurrency landscape. With pension funds beginning to invest, so too is the case with the wealth management sector.
Although cryptocurrency has become mainstream in recent years, its humble origins are still evident. Since its conception in 2008, when bitcoin.org was first registered, and through 2009, when Satoshi Nakamoto sent Hal Finney 50 BTC for the first Bitcoin transaction, cryptocurrency has made great strides. Bitcoin was well on its way to many landmarks. In 2020 it had also broken the 2017 record for trading in $20,000s. March of 2021 saw its value reach $60,000 and in April some of the world’s biggest brands were taking Bitcoin as payment. El Salvador became the first country in September to recognize bitcoin as legal currency.
Investors have often found wealth in untapped or undiscovered industries. One great example is the rise in stock prices in tech companies, such as Shopify. This happened before these stocks exploded in price. Investors who recognized the opportunity and made a large return saw incredible returns.
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.
There are many things that make digital assets attractive. The most significant is their decentralization. There is no controlling authority that could tamper or enforce any type of censorship on your assets. Not only has cryptocurrency seen an increase in popularity, but also NFTs (nonfungible tokens), have experienced a significant uptake in their popularity. NFTs allow creators to sell art of all kinds—photos, video, or audio—that are all stored on the blockchain.
Baanx, which is building infrastructure for digital asset mass adoption, is one of the leading players in DeFi. This fintech helps consumers and businesses harness cryptocurrency. It aims to transform the way people interact with crypto assets and create more uses for them. 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.
Baanx was established in 2018 by an innovative group with over 100 years experience in the banking industry. Its goal is to tap into digital assets’ potential and maximize their utility. Baanx, which has partnered with leading industry players like Tezos or Ledger in the year 2022 is proof of this. Baanx plans to become a replacement for traditional fintech companies by providing trust and transparency in the digital asset markets.
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. Users will be able to use Cryptodrafts later on, as the token distributes network fees based upon the amount of BXX they have. Tokens can be staked to receive liquidity rewards and BXX earned for holding stablecoins.
Digital assets offer a more profitable and secure investment option than traditional banking for those who want to create wealth over time. Baanx, along with other crypto investment companies, is pushing the boundaries. This will make it easier for savvy investors to reap the rewards of investing early.