Blockchain technology holds the promise to radically change the manner in which financial transactions are undertaken and the investment options available to the investor public. This potential is driven by blockchain’s defining features such as transparency, immutability and traceability, which offers tantalizing potential for T+0 instantaneous settlement. Meanwhile the application of blockchain to tokenize real world assets will open up hitherto illiquid yet investment grade assets to a wider investment public. This will challenge the way that all the stakeholders – regulators, asset owners, financial intermediaries and investor – think about finance and investments.
Bitcoin, the crypto asset with the most brand name recognition globally, is the first successful use case for blockchain technology. In its 13th year with four major downturns, Bitcoin has defied naysayers to earn its consideration in any investment conversation. The question is no longer if bitcoin or crypto brethren should be part of a investment portfolio, rather the focus should be the appropriate allocation percentage within the construct of an overall investment portfolio. I believe that this assertion will become increasingly apparent with the ongoing generational wealth transfer. Tech savvy second gen and third gen who grew up in a digital world will provide the tailwind for mainstream adoption of digital assets as investment class.
Nonetheless, cryptocurrency has to overcome one Achilles Heel. If as expected, institutional investors look to get into the crypto space, they will have to address valid criticisms of crypto being energy intensive or “dirty” asset class.
Last year, MetaVerse Green Exchange (MVGX) published two whitepapers calculating the exact environmental impact of 1 Bitcoin (BTC) and of 1 Ether (ETH). This which enables investors with BTC and ETH to quantify the carbon footprint of their crypto portfolio and, more importantly, to provide offset via Carbon Neutrality Token (CNT™). .
With our Carbon Neutrality Token (CNT™), investors can track and offset their carbon emissions via high quality, authenticated carbon credits. Not only can this mitigate the environmental impact of the crypto portfolio, but it can also futureproof the investment, as regulation and consumers increasingly demand ESG compliance. In another demonstrable use case of blockchain, each CNT is a tokenized form of one ton of carbon credit, with the relevant data all recorded on the Ethereum blockchain.
At MVGX, we are innovating products and services at the intersection of digital and green assets. Our mission is to enable investors to build generational wealth today, because the future is now.