Trends Watch: Digital Assets
EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.
This week, Elana talks to Constantin Kogan, Venture Partner, BitBull Capital and Chief Business Officer, ABOTMI
What is your outlook for digital assets?
Digital assets are the future of the economy. And we are not talking only about the financial or banking sector. I truly believe that we are heading to a complete digitalization of all assets: currencies, stocks, bonds and real estate. If you think about it, the majority of developed countries already have more than two-thirds of transactions in digital payments, any payments enabled via POS or bank transactions that are recorded directly against a bank account. The benefits are simple: more transparency, security, accountability etc. Blockchain technology introduced a payment system with clear benefits for humanity: open-source, transparent, traceable, secure, and resistant to counterfeit, etc. We now enter a stage of maturity where regulations, custodians, exchanges, legal experts and investors all have to work together to create a cohesive framework for any new market player. It is important to provide enough education and clarity to each investor in the space whether they are interested in cryptocurrencies or digital securities (asset-backed tokens, security token offering, initial token offering, etc.).
What is your outlook for the economy?
Our modern economy is based on digital computing technologies. We live in the fastest growing technological age. According to Forbes: “The Digital Economy is worth around 3 trillion dollars today. This is about 30% of the S&P 500, six times the U.S.’ annual trade deficit or more than the GDP of the United Kingdom.” Now think about the digitalization of real estate which is the biggest asset class in the world. The value of U.S. commercial real estate is approximately $15 trillion. Imagine if you would be able to participate in a revenue share of multi-billion business with few thousands of dollars or purchase a room in Marriott or Hilton. The sharing and value economies are becoming an integral part of our life, so it's just a matter of time of massive adoption.
What keeps you up at night?
My kids and my work keep me up at night. When you are in a fast-paced environment the time is condensed which makes you hyper-focused on things that matter. After an exciting year at BitBull Capital, the first fund of funds in digital asset space, I have joined ABOTMI - the first platform that enables the digital asset advisors to build, manage and share their reputation. This project really excites me because the core goal is to protect the investors with the strong belief that “Protecting Wealth is Creating Wealth.” As a member of the board of directors, I'm looking to contribute as much as possible to the digital asset ecosystem by providing a verification mechanism for each participant.