Back in January, we interviewed Stephen McBride, chief analyst for RiskHedge, about the emerging Phase 2 crypto ecosystem.
What are Phase 2 cryptos?
Forget for a moment Bitcoin, Ethereum and other tokens that claim to serve as a superior currency or store of value.
While that may prove out, the true potential for the blockchain appears to be enabling the creation of real & sustainable commercial value over a new platform better suited to many of today’s most common transactions.
Just like the internet revolution moved a tremendous amount of commerce from the real analog world into the digital world, a similar migration is now underway – this time onto the blockchain.
And the value being unlocked is no longer just a promise at this point. Billions of dollars worth of actual revenues are being made by blockchain enterprises now.
It’s easier to think of the coming future role of cryptos as less like “digital gold” and more like “digital stocks” – where the holder owns a claim on the cash flows that these blockchain enterprises produce.
The implications for this promise to be both massive and disruptive.
But it’s still very early days in this unregulated space. Tremendous upside exists, but so does great risk.
Given that Phase 2 cryptos may be showing us the future of investing, simply ignoring this movement could be a very costly decision.
Which is why, at this point, the best investment we can make is in our education — to learn where the puck is heading.
For an updated explanation of Phase 2 cryptos in layman’s terms and to hear the key developments in this emerging space, watch this interview with RiskHedge’s Stephen McBride.