Hello Cadets, welcome back! We have another great blockchain innovation for you: Tokenized Stocks! Now you can trade tokenized versions of stocks like Amazon, Tesla, or Apple.
And best of all, you can buy them with US dollars, Bitcoin or Tether. How is this possible? Let’s find out together. I’m Captain Crypto and welcome to Cryptonauts. The word Stock is a proto-Germanic word meaning Tree Trunk, and it was the Dutch that conceptualized the word stock to mean a share of a company.
Original stocks were actually stuck with notches on them. They would break them in half lengthwise and half of the stick would go to each party involved in a transaction. It made it virtually tamper-proof since the two halves of a stick had to match to be valid.
Fast forward 500 years. Thanks to the internet, it’s easier to get shares of a company with just a few clicks. And now, thanks to blockchain, we can get a share of a valuable stock that trades on traditional regulated exchanges in a tokenized form. How does it work? We take one stock and create a representational, tokenized version of the stock share.
In the same way, cryptocurrency is better than old-school money, Tokenized Stocks offer some really cool advantages over regular stocks: Because they’re tokenized, you can buy just a fraction of the whole share, something that’s never been possible on the traditional stock market.
Stocks like Berkshire Hathaway cost north of 300 grand, and soon you’ll be able to buy just a tiny slice of a share if you want. Many of you live in countries where it’s expensive and difficult, if not impossible, to buy stocks on the American stock exchanges.
Now that they’ve been tokenized, you can buy them anywhere. This now means that not only can people in the developing world buy crypto to build their wealth, but they can now do the same with tokenized stocks.
That’s truly revolutionary! Tokenized stocks can be bundled together like an ETF, so expect to see interesting bundles coming your way soon like a FAANGstock or a bundle of airline stocks. Lastly, for the hardcore traders out there, these fancy new digital forms of stock shares trade 24/7, because crypto never sleeps.
Its great news if you’re living outside the US, you don’t need to stay up late to trade onUS time. It also means savvy traders might find interesting arbitrage opportunities since the traditional stock market doesn’t even work 9 to 5.
I can see a bright future where almost everything is tokenized – fine art, gold bars, maybe even my grandmother’s couch. Thanks to Bittrex Global for sponsoring this episode.
You can trade their first tokenized stock offerings now by visiting the link in the show notes below. Please give us a like if you enjoyed this episode and subscribe for more articles.
Remember Hodl, secure your crypto, and may Satoshi and Vitalik be with you, always.