AI, tokenization to usher ‘new long-tail capital market’ in 2025: Bitwise

According to Hunter Horsley, CEO of Bitwise, the years leading up to 2025 might witness a surge in smaller, specialized businesses fueled by AI and tokenization technology. Additionally, we may observe increased corporate adoption of Bitcoin, as well as a revival of mergers and acquisitions activity that could potentially be advantageous for cryptocurrencies.

On January 5th, Horsley expressed that he perceives the world as standing at the edge of transformation in the year 2025, across a sequence of posts.

Tokenization to help small businesses

In a previous post by Horsley, he put forth some predictions regarding tokenization. He emphasized that while much attention has been given to the advantages on the demand side, like facilitating access to money market funds for all, the true transformative power is found on the supply side, as he stated.

The transformative ability of tokenization could stem from providing smaller businesses with an unprecedented opportunity to tap into capital markets, as one suggested.

2025 could see real-world asset tokenization becoming a significant trend within the cryptocurrency sector, as suggested by Edwin Mata, founder and CEO of Brickken. Real-world asset tokenization streamlines traditional markets by allowing assets like property, debt, and equity to be converted into digital form for trading on blockchain platforms. This was shared in an interview with CryptoMoon.

AI to lead to explosion of micro companies

In a separate post, Horsley expressed his belief that advancements in artificial intelligence could potentially result in a surge of traditional and token-based businesses.

Artificial Intelligence (AI) may significantly expand the variety of specialized, or ‘niche’, businesses that might not traditionally go public. Instead, these entities could potentially issue tokens, creating a new, extensive market for long-tail investments.

Bitcoin Standard” corporations

2025 may witness an influx of businesses adopting the “Bitcoin Standard,” meaning they will incorporate Bitcoin into their financial structure, according to Horsley’s prediction. In simpler terms, he believes many companies will start holding Bitcoin in their reserves by 2025.

In other words, MicroStrategy, suggesting a further acquisition on Monday, currently owns approximately 446,400 Bitcoins, which equate to roughly $43.7 billion at present market values.

By the end of 2024, numerous small businesses disclosed initiating plans to purchase and store Bitcoin within their financial reserves.

Unfreezing M&A

According to Horsley, the Trump administration could potentially allow large-scale corporate mergers and acquisitions again, a move that might be advantageous for the cryptocurrency sector.

In a post on X on January 6th, Horsley suggested that the prominent seven corporations, including Alphabet, Amazon, Apple, Meta (Facebook), Microsoft, Nvidia, and Tesla, might soon have enough power to utilize their substantial market values.

He predicted that the larger entities could potentially grow even more, while smaller ones might diminish. If this trend occurs, he believes it could speed up the adoption and growth of cryptocurrencies, given that big corporations tend to prioritize their own interests over those of their users.

“The conceptual premise of crypto is not trusting large institutions to do what’s in your best interest. The big getting bigger accentuates this.”

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2025-01-06 07:16