Two years ago, the entire cryptoasset market had a value of $9 billion. Had it been a public company, it would barely have cracked the S&P 500 index. Fewer than two years later, the cryptoasset market is $300 billion in size, roughly double the market capitalization of RBC, Canada’s largest lender.
Two years ago, the entire cryptoasset market had a value of $9 billion. Had it been a public company, it would barely have cracked the S&P 500 index. Fewer than two years later, the cryptoasset market is $300 billion in size, roughly double the market capitalization of RBC, Canada’s largest lender.
The explosion (and recent pull-back) of value in cryptoassets like bitcoin and ether has captured the imagination of developers, and the attention of the media, governments, central banks, the investing public, and regulators. It has made enthusiasts euphoric, Nobel laureates skeptical, and old-school billionaires dyspeptic. Charlie Munger of Berkshire Hathaway $BRK.B went so far as to call bitcoin “.” Is there any other kind of poison?
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To be sure, there is a lot of hype in this market, and the industry must confront such implementation challenges as scaling technology and regulatory uncertainty. But beyond the hype and mania, something profound is happening—the creation of an entirely new digital asset class.
This new asset class will transform every industry in the economy, from financial services to pharmaceuticals, media to manufacturing. Existing assets like stocks and bonds will become digital assets and new yet unforeseen assets will emerge, enabling new decentralized business models based on collaboration and clever code. Understanding the various types of cryptoassets, and the different functions they serve, is crucial to thriving in this new decentralized digital economy.
In the updated version of Blockchain Revolution, we break them down into at least seven categories:
This Cambrian explosion of cryptoassets will precipitate one of the greatest reorganizations of wealth and transformations to the global economy in our history. This represents a second kick at the can—an opportunity to assure that everyone has the ability to benefit from the prosperity of the digital age.
To truly realize that promise, however, it’s time we looked at cryptoassets not just as “digital gold,” but of digital everything.
This article is part of Quartz Ideas, our home for bold arguments and big thinkers.
