The "anchor" of the next generation of currency will focus on "digital assets"

After the US election, global cryptocurrencies and digital assets have received a new round of high attention. Of course, in the digital economy era, the status of "digital assets" is rapidly and comprehensively upgraded. In the future, digital capital will be greater than financial capital.

Modern currency is generated by debt or credit, so the "anchor" of currency is essentially what kind of guarantee and income a person who borrows money from a bank relies on to repay the money. We all know that the scale of the digital economy is constantly expanding, and this is not just happening in China, it is a global feature. Among them, industrial digitalization accounts for 90% of the global digital economy and is the absolute main battlefield of the digital economy. Therefore, under such a high-speed development of the digital economy, it is normal for the form of assets circulating in the economic system to change. New asset types are born quickly and naturally integrated into financial activities. Almost all of the world has focused on "digital assets" as the "anchor" of the next generation of currency.

Since 2020, the global encrypted digital asset industry has entered an explosive growth. There are three main reasons for the outbreak. The first is the expansion of investment institutions in this field. Second, the rapid rise of distributed finance is the inherent motivation for promoting encrypted digital assets. Of course, the third important factor is that the regulatory policies of various countries on encrypted digital assets have gradually become clear. Judging from the development speed of legal digital currency, after 2020, it is basically a state of comprehensive acceleration. China's digital RMB has gone through multiple rounds of pilots in multiple places and leads the world. How will the encrypted digital asset industry develop by the end of 2024? What are the future trends?

First of all , data assetization and asset digitization continue to expand the boundaries of assets . The two concepts here are simple to understand. Asset digitization is easy to understand, that is, traditional assets appear in digital form. Data assets or data assetization are various transaction data and behavioral data generated based on the Internet, which has become a new asset category. For example, in our catering consumption, in the entire industrial chain, we can use current digital information technology to obtain data from the entire chain, including food preferences, age, income, credit, social relationships, etc., and use these real data as credentials as new "anchor" assets.

Since the birth of Bitcoin, there have been more than 20,000 digital asset trading platforms of all sizes. Generally speaking, these platforms should be regarded as attempts at innovative solutions. Currently, the data assets generated by data and data elements basically come from the huge public service data of industry, culture or cultural creation, and digital cities.

The development of the global digital asset market has the following three new characteristics that deserve attention.

First, the agglomeration effect of the encrypted digital asset market has been significantly enhanced. First, the current market value of encrypted digital currencies has been occupied by Bitcoin and Ethereum. 70%. Secondly, it is noted that the computing power of the cryptocurrency industry is still accelerating. Computing power is a very important link in cryptocurrency. To obtain the accounting power of the block and the corresponding energy industry, data center services and computing power will increase. After all, the greater the computing power, the greater the security factor of the entire blockchain network.

Second, mainstream commercial institutions are accelerating their deployment of encrypted digital assets. In terms of direct investment in encrypted digital assets, a representative case is Tesla's acceptance of Bitcoin as a payment method for purchasing cars in 2021. Of course, direct allocation is also increasing, through traditional capital market institutions such as crypto asset lending companies, hedge funds, mutual funds, and family funds.

Third, the impact of encrypted digital assets on traditional capital markets is accelerating. With the increasing amount of virtual data generated by social data, natural data, and the metaverse, the marginal effect of data mining is constantly increasing. On the one hand, it accelerates the catalysis of various new financial products, and the decentralized finance mentioned above is a representative example. In addition, under the constraints of securities laws and financial supervision, there are currently many successful cases of financing through the issuance of securitized tokens, which has indeed brought a lot of imagination to the traditional capital market. In particular, digital artworks in the consumer industry, games, digital works in the cultural industry, intellectual property protection and trading of artworks, virtual and personalized tourism in tourism, especially the sharing of educational resources in the education industry, and the in-depth integration experience of industry and skills. Of course, games, advertising, new media, and also product brands and supply chain collaboration in the new manufacturing industry are all in the process of accelerating.

In the long run, the challenges of global digital asset development are compliance, security and professionalism. After all, how to balance regulation and innovation and how to promote the healthy development of the market is a difficult problem. I am more concerned about professionalism and compliance. After all, digital assets are new things. For most people, including professional investors and regulators, there is a need to improve their professional capabilities. Compliance is also closely related to professionalism. At present, global cases are not so abundant, and consensus also depends on circles and regions. We need to learn more, communicate more, and remain vigilant and flexible.