As we step into 2025, it’s clear that this year will be marked by significant changes in the world of cryptocurrency and business. In a recent series of posts on X, Bitwise CEO Hunter Horsley shared his predictions for what the future holds, and it’s exciting to say the least.
Tokenization: The Key to Unlocking Smaller Businesses
According to Horsley, 2025 may see a boom in smaller, niche businesses aided by AI and tokenization. This is an area where tokenization can truly make its mark, as it enables a vast untapped supply of smaller businesses to access capital markets. The real-world asset (RWA) tokenization industry is expected to be the next key narrative in the crypto space this year, according to Brickken founder and CEO Edwin Mata.
Real-world asset tokenization is transforming traditional markets by enabling assets like real estate, debt, and equity to be digitized and traded on the blockchain.
— Edwin Mata
The Power of Tokenization: Supply-Side Benefits
Horsley argues that while demand-side benefits have been the focus in tokenization so far, its true revolutionary potential lies on the supply side. By enabling smaller businesses to access capital markets, tokenization can unlock a vast new market for investors.
The Potential Impact of Tokenization
- Enables smaller businesses to access capital markets
- Creates a new market for investors
- Transforms traditional markets by digitizing and trading assets on the blockchain
AI: The Catalyst for an Explosion of Micro Companies
Horsley also predicts that AI may lead to an explosion of companies and tokenized companies in 2025. This could be a major new long-tail capital market, with AI increasing the number of niche businesses that could never go public but can tokenize.
How AI Can Boost Tokenization
- Increases the number of niche businesses
- Enables these businesses to tokenize and access capital markets
- Creates a new market for investors
The Rise of ‘Bitcoin Standard’ Corporations
Horsley also predicts that 2025 will see the arrival of ‘Bitcoin Standard Corporations,’ companies that hold BTC on their balance sheets. This is already being seen with companies like MicroStrategy, which has hinted at another purchase.
The Benefits of Bitcoin Standard Corporations
- Allows corporations to diversify their assets
- Provides a store of value and hedge against inflation
- May increase adoption of Bitcoin in the corporate world
Unfreezing Mergers and Acquisitions
The forthcoming Trump administration in the US may "unfreeze" mergers and acquisitions for large corporations, which is good for crypto, according to Horsley.
The Impact on Crypto
- Large corporations may finally be able to wield their market cap
- This could accelerate adoption of crypto by these companies
- May increase investment in the crypto space
Conclusion
As we look ahead to 2025, it’s clear that this year will be marked by significant changes in the world of cryptocurrency and business. With tokenization, AI, and corporate Bitcoin adoption on the rise, it’s an exciting time for investors and businesses alike.
Key Takeaways
- Tokenization may lead to a boom in smaller, niche businesses
- AI could increase the number of companies that tokenize
- Corporate Bitcoin adoption is on the rise
- Mergers and acquisitions may be "unfrozen" for large corporations
