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  • Will traditional investments still have a place in 2024?

Will traditional investments still have a place in 2024?

In a world that is increasingly discussing the construction of a tokenized economy, the focus is on the future of the traditional investment landscape. Do they still have the same relevance over time?

This is an important question for governments and financial systems to understand where the focus of the modern investor is going and what is transforming their behavior.

The growing digitalization of the economy, born of the internet and globalization, requires investment market players to rethink the way they relate to the investing public, which demands more agility and availability to invest.

However, with the arrival of blockchain, cryptocurrencies and the transactional token, the challenge for the traditional market has amplified.

It’s no longer about the means, how to invest, but especially unrestricted access to investment opportunities. Innovations and disruptive technologies need to be consolidated.

How can this happen with investments in 2024 and in the coming years?

BLOCKBR, a company that develops tokenization infrastructure, will talk about the future scenario of traditional investments and how asset tokenization plays a key role in it!

THE EVOLUTION OF THE INVESTMENT MARKET

The investment market is changing to keep up with the transformations in the behavior of societies, their issues and the extent to which technology impacts their routines. The break with conservative standards is the main point in the evolution of innovative and traditional investments.

SUSTAINABLE AND RESPONSIBLE INVESTMENTS

Sustainability and socio-environmental responsibility are non-negotiable values for qualifying people’s future. There is growing interest in sustainable investments, which combine income with environmental responsibility.

NEW EMERGING SECTORS FOR INVESTMENT

People’s new concerns – the environment, health, the fight against inequality – have brought markets such as technology, renewable energies, health and companies with effective social responsibility onto the investment scene.

Alongside this trend in content, there is an advance in form with fintechs, innovative financial services startups, transforming people’s relationship with money, investing and carrying out financial transactions.

DECENTRALIZATION OF ASSETS

Decentralization is the main premise for investments of the future, which was born with digital currencies: eliminating intermediaries to gain agility, reduce the operating cost of offers and give investors more freedom.

DEMAND FOR DEMOCRATIZATION OF INVESTMENTS

The world’s per capita income has been growing steadily since 2020. One of the effects is the pressure for access to investments that have traditionally been restricted to large investors and groups. On the other hand, the market has not reacted in the same way, despite some improvements.

In Brazil, there is growing interest in variable income assets as an alternative to the ubiquitous and always disappointing savings account.

Investment tokens, with the fractioning of assets, have become a democratic option to democratize access and practice by allowing lower amounts to be raised by companies.

DECENTRALIZATION, FREEDOM AND PERSONALIZATION CHANGE INVESTORS’ MINDS

There is no doubt that the investment market, already profoundly impacted in recent years by the digitalization of everything and disruptive technologies, will be further transformed in the coming years.

Technological changes that modernize the relationship between those who invest and those who offer assets are an ongoing process, aimed at meeting the needs of a public that needs agility and globality, but with security.

However, much of the future change comes from the mind of the human being who invests.

The decentralization of financial information is the biggest differentiator. It removes a high banking cost from investments that makes products with excellent profitability unviable for most investors.

In addition, the user’s active relationship with companies through technology is also reaching investments; people want to decide freely where they will make their money work for them.

THE CENTRAL ROLE OF INVESTMENT ADVISORS

This proactive attitude on the part of the investor challenges the monopoly of knowledge and decisions by large corporations and strengthens the role of the investment advisor, the professional who studies and understands transformations in order to provide personalized guidance.

Here we come to the third pillar of transformation: personalization. Each investor wants to feel unique in their decisions because their projects are unique.

Knowing all the possibilities is almost impossible for those who work or do business on a daily basis. The investment advisor shortens the distance to understanding and is always aware of all the innovations and changes in the financial market.

The investment advisor’s success lies mainly in anticipating new realities.

New realities in the investment market
Image: Canva

ADAPTING TO THE NEW REALITIES OF THE INVESTMENT MARKET

GROWTH OF THE INVESTOR MENTALITY

The globalization of access to qualified information on investments has been a decisive factor in the behavior of investors who want to move away from conservatism and dare more. Investors want to understand market mechanisms and make more technical, less intuitive decisions.

CONSOLIDATION OF DISRUPTIVE TECHNOLOGIES

Interest in cryptocurrencies as a digital investment asset is growing, especially with the continued release of cryptocurrencies in various countries and regulation, as is the case in Brazil, helping to increase the credibility of cryptoassets and blockchain technology.

The transactional token, which represents assets and new businesses in investment offers, is the great transformation because it provides agility, globality, security and transparency with fractions of assets, expanding the universe of investors.

DIVERSIFIED AND PERSONALIZED INVESTMENTS

Investors’ preferences are changing, with a focus mainly on diversifying the investment basket in order to make gains between conservative and bold assets. Another issue is greater transparency of operations and personalization.

The use of artificial intelligence and machine learning with algorithms to analyze data and make more assertive decisions will be the keynote. These technologies, applied to trading strategies and portfolio management, will boost results and investor confidence.

TOKENIZE ASSETS WITH BLOCKBR AND BOOST YOUR RESULTS!

Tokenization is a reality in the market, with an increasing number of companies and people generating revenue with tokens. Recent actions by BACEN and the digital real are increasing the credibility of the technology.

For the success of your project, it is essential to have an adequate and efficient tokenization infrastructure for the financial and other markets, comprising:

  • Technical, fiscal and legal feasibility study;
  • Issuance of tokens and smart contracts with transparent governance;
  • Distribution of tokens on a simple and secure sales platform;
  • Efficient and assertive tokenization governance.

Discover BLOCKBR’s infrastructure work for regulated and unregulated markets through an All-In-One platform that offers interoperability between assets and investors.

You don’t want to see your competitor get ahead to make more money.

Or do you want to?

BLOCKBR is a fintech specialized in building infrastructure that allows a simplified migration to tokenization, meeting the needs of a highly regulated environment.

Our main mission is to develop autonomy for the capital market so that it can move, grow and potentially access digital assets. We develop legal and technological solutions that create opportunities and simplify the way in which financial services will operate, from the structuring and new roles of the agents involved to the management and supply of these assets, generating efficiency, lower costs and greater speed of liquidity.

We take care of the entire technological infrastructure for tokenization and regulation, simplifying your life so that you can take care of your customer relationship.

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