When it comes to cryptocurrencies, a lot of folks don’t quite understand the hype. It seems like this realm of ‘internet money’ cropped up overnight, and it’s maintained its place in the spotlight ever since. 

But did you know that cryptocurrencies were intended to be a hedge against economic meltdown? It all began back in 2009, when Satoshi Nakamoto created Bitcoin (BTC-USD) in response to the 2008 financial crisis. And now about 15 years later, the global market value of cryptocurrencies has surged to over $2 trillion. That’s an astonishing level of wealth creation. 

Yet many people are still left wondering: What do cryptos actually do? It’s a simple question. But the answer you’ll get will depend on who and when you ask it. Though, for me, it all boils down to one word: Tokenization.

What Is Tokenization?

In the context of cryptocurrency and blockchain technology, tokenization refers to the process of converting a physical asset or ownership rights into a digital token. This allows assets to be traded, transferred, and managed more efficiently and securely. 

In other words, a physical asset is broken down into tradeable ownership “tokens,” creating a liquid market around any asset. 

Take a luxury collectible car. Traditionally, it’s owned by just one person. But… if you were to tokenize that car… and split the ownership rights up into say, a dozen different tokens… then a dozen different people could each own 1/12 of that car… and trade that value to other folks as a medium of exchange. 

The same could go for a house, a trading card, or anything of real-world value.

Essentially, tokenization allows people to create a market out of anything.  

And interestingly, this past week, Blockworks tech journalist Mike Mallazzo wrote:

“More than ever before, crypto is unabashedly embracing its most reductionist and obvious purpose – turning everything into a game where you can seamlessly buy low and sell high.”

We entirely agree with that statement. 

To us, the best real-world crypto use case is the tokenization of physical assets to essentially “gamify” anything – or perhaps more appropriately, create a liquid market of value around anything. 

An Era of Gamification

And we believe the timing for this use case to show its true value couldn’t be better – because consumers are increasingly gamifying everything these days. 

Look no further than the meme stock craze comeback of the past week. GameStop (GME) and AMC (AMC) both shot up hundreds of percent in a matter of days all because a famous trader tweeted about them. 

Folks are out there buying GameStop and AMC hoping to strike it rich. It’s become a betting game. Or how about sports betting? That is absolutely surging these days. Indeed, in 2023, Americans wagered a record $120 billion on sports bets. That’s up nearly 30% year-over-year.

And now Dave & Buster’s (PLAY) is getting into betting, too. The arcade operator is teaming up with gamification technology company Lucra to allow customers to make small bets on arcade games through D&B’s app. 

D&B sees the writing on the wall. Americans are obsessed with gamification. The demand is there. But the mechanisms are not.

The Final Word on Cryptos and Tokenization

The existence of middlemen in the gamification process is a massive shortcoming.

After all, why place a $5 bet through an app – and let the app take a hefty cut – when you could just Venmo that bet without fees instead?

Yes, Americans want to create a market or a game out of anything. But not at any cost. 

The blockchain addresses this shortcoming by replacing profit-taking middlemen with free technology. 

That’s why we think tokenization is the most profound real-world application of cryptos. 

With it, cryptos will enable us to create a game out of anything. And that’s clearly something Americans want these days. 

That’s why, in our exclusive crypto investment research advisory, we are pounding the table of top-tier tokenization cryptos. 

We think they could be poised to soar in 2024. 

Find out which tokens we like for a huge potential rally.

_{On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.}

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