Jeff Brown is pitching something he calls a “global token exchange” recently, abbreviating it “G.T.E.”, and reader questions are piling up on the doormat here at Gumshoe Manor, so it’s time to take a look…
The basic spiel, which takes the form of a long presentation/interview between Jeff Brown and a hired talking head that leads to an ad for Jeff Brown’s Near Future Report (that’s his intro level newsletter, $49/yr), is all about how “tokenization,” the process of making everything liquid and investable by breaking ownership it up into little pieces that are stored on the blockchain, is going to change the financial world in dramatic ways… akin to the huge revolution that was spawned with the birth of the first stock exchange.
That first formal stock exchange, most people say, was formed in Amsterdam in the 1600s, and was created to trade shares of the Dutch East India Company, which was the largest company in the world at the time, and is often credited as being the first publicly traded stock (some folks estimate that in today’s dollars, the Dutch East India Company would have had a market cap of about $8 trillion at its peak).
This next wave of revolutionary “tokenization” might be most recognizable at the moment for the fact that it enables the trading of Cryptokitties and little collectible snippet videos of NBA plays, so the headlines often make it seem trivial in comparison… but, of course, those stories also draw attention to a world where much more “real” stuff can also be “tokenized”. So what’s Brown talking about?
Here’s the start of the ad, to give you a little taste:
“Why are Billionaires like Elon Musk, Mark Cuban & Michael Jordan Investing in This Odd New Technology?
“Legendary forecaster who called #1 returning tech stocks of 2016, 2018, 2019 & 2020 — reveals how $25 gets you into one technology set to grow 2,000X BIGGER than Bitcoin”
And yes, Brown goes into that Dutch East India example and some others in explaining the importance of “tokenization”… here are a few more snippets to give you the idea:
“In 1602, the world’s first stock was born: The Dutch East India Company. Before then, nobody knew what a stock was. The bulk of global wealth was private — until one simple idea changed the world overnight:
‘Let’s split up our company into small pieces, and sell them to investors.’
“We take it for granted now, but 400 years ago, this was a technological breakthrough. It was the first time in history somebody could own a ‘fractional piece of something….
“‘G.T.E.’ is allowing us to apply that simple idea — owning pieces of things — to the ENTIRE world. Because this technology allows almost anything on earth to become tradeable.
“Like this Michael Jordan rookie card… this Picasso painting… even this $2.5 million dollar Kentucky-derby winning racehorse….
“… imagine a world where just about everything is publicly traded… every car… every restaurant… every work of art… every piece of real estate… every software program and new technology.
“Imagine being able to take a direct stake in anything!
“What we’ve seen so far is the first wave hitting the shores.
“But there’s a quadrillion-dollar tsunami behind it that hardly anyone is paying attention to.”
So that’s the basic idea, that this concept of a Global Token Exchange is going to democrative all kinds of assets, letting you buy and sell almost anything, not just stocks.