In this podcast with Mike Stroller, whose audience are high net worth individuals (HNWIs) looking for ideas on how to look at alternative investments, I pointed out that the more digitised the economy gets, the more financialised it will become. The US economy does not stand a chance to going back to basic manufacturing because it has become a highly financialised economy. As it accumulates greater debt, the only recource that will become available will be to digitize its currency so that its financialized assets can continue to be traded widely outside of the country. We contrasted this with China’s focus on manufacturing and its challenges with market transparency and liquidity.
We highlighted the differences between the capitalist model in the US and the social safety nets found in so many other countries, and how the different approaches address wealth management and social support. It is with this line of thought that we should be thinking about how a tokenised economy will redefine finance and our understanding of value.
Also, the digitization of financial transactions and assets is making them more ephemeral. For example, mortgage processing has become faster and more efficient through digitalization. Over time, the sheer speed of a mortgage transaction from months to minutes will transform the perception of mortgages as a long term asset.
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