Tokenization: Allowing Us To Buy Into Entities

Steem-Engine is a powerful creation that was added to the blockchain. Already we are seeing the impact of it.

One of the biggest benefits to tokenization is the ability for fractional ownership. Many will this is feel that it was always possible yet it was rather limited.

The present system allows people to buy stock in companies. For the average person, that means going to the public exchanges. That is all well and good except that there are other areas that most are excluded from.

Those with big money, who are considered "accredited investors" are able to get into opportunities sooner. The system is geared for them believing they are the only ones smart enough to understand risk. In other words, the rest of us lack the ability to size up the prospects of a deal to accurately assess whether we should put our money into or not.

Thankfully the government (SEC) is there to protect us. They are there to help after all.

What is really happening is people are being excluded from the big gains. Yes there is increased risk in many instances but the rewards can explode. Of course, that goes into the pockets of the Wall Street types while the rest of us can buy after things hit the open market.

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This all changes with tokenization. We see the ability to buy into projects as they are just getting started. Steem-Engine is one example of this being offered to people. I use the term entity in the title because this is not just limited to businesses. Communities and ecosystems are forming that do not fit the typical business model, yet we are able to get involved with them.

While many focus upon the monetary value, there is an additional aspect to all of this. Tokenization brings value to an entity. It allows for members to reward and provide incentive to others. This is vital to the expansion going forward. As this concept spreads, those that lack tokens are going to get left behind. People essentially are going to demand to get paid for their input.

Many of us who are on here are aware of this. Once there is the taste of getting rewarded for upvotes, the idea of them meaning nothing does not sit well. This is what the present system is up against.

The present system was either designed or evolved in such a way to keep the average person near broke. This is no secret considering how things are going. Tokens allow us to completely change the scenario. Now, we are the ones who are able to get involved in projects that have the ability to 100x or 1000x.

Let us look at Steem-Engine. There are dozens of tokens on there. Soon, we will see hundreds and, within a year or two, thousands. That will be a tremendous amount of wealth created on here. Again, many projects will fail and a large percentage of the tokens will have little monetary value. Some, in fact, are designed simply to be for fun. The goal is not to have something worth millions of dollars.

We are seeing a lot of things just getting started. Take D.Tube and the changes that it made in the last update. It totally revamped the entire platform. Presently, it is in testnet mode so the tokens are simply in that state also. However, from what I understand, it is going to bring out its token along with Steem-Engine.

Obviously, D.Tube is going after a very big fish with YouTube. I am not going to make the argument that this entity will be anywhere near the size of it. If, however, it does make a significant dent in the video market, how much will it be worth? Isn't there a huge advantage to those individuals who are early adopters of the token?

As we saw with Steem, there are advantages for being an early adopter.

What is fascinating about the projects on Steem is that not only can one buy in, but there are ways to earn most of the tokens. The blockchain is coded to deliver them.

The opportunities on here keep expanding. We are seeing ways to earn 5 or even 10 tokens a day. This is a radical shift. What I am finding enticing is the conversion of tokens from one project to another. For example, I recently bought a fair bit of PAL to power up (stake) my account. Since then, I started to take some of my payouts and convert them to ENG tokens since I felt underweight there. I am also feeding some of my STEEM payouts that way.

Staking allows us to show support for a project while also earning, in most instances, some more tokens. If one is happy with the amount in a project, the new tokens can be used to support other projects.

Of course, it is easy to become like a kid in a candy shop. With so many options, we want them all, This is where discipline and research comes in. For me, I have a handful of projects I support and focus upon. Time simply excludes being up on everything. Thus, we have to make choices.

That is what freedom is all about. Be careful with what you are doing because the choices you make will provide a set of consequences you have to live with. Nobody is going to protect you from yourself.

I believe it is this idea that is going to create massive amounts of wealth over the next decade. The fact that billions can get involved with this and promote their ideas is revolutionary. Resources are going to be available to people which did not exist before. This is going to provide the foundation for millions of successful companies which otherwise would not see the light of day.

As they always say, we are living in interesting times.

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