The birth of new Australian digital assets

On 4th June 2024 a significant marker was reached in the digitization of the Financial Services Industry where the first Australian digital assets ETF was launched which directly holds Bitcoin namely Monochrome Asset Management’s IBTC on CBOE Australia.

Australian digital assets process

In essence Digitization is the process of converting analog information into digital formats. It enables data storage, analysis, and sharing.
Futurist Peter H. Diamandis succinctly lays out this process with the 5 D’s namely;
1) Deception: Initially, exponential technologies may seem slow to progress, but they accelerate rapidly, catching many off guard.
2) Disruption: Exponential technologies disrupt existing industries and business models, leading to unexpected changes.
3) Demonetization: As technologies advance, costs decrease dramatically, making them more accessible and affordable.
4) Dematerialization: Physical products become digital or virtual, reducing the need for physical resources.
5) Democratization: Access to exponential technologies becomes widespread, empowering individuals and small teams to create significant impact.

Whilst these concepts provide a roadmap for understanding how innovation unfolds in our new Australian digital assets economy, we can look back 10 or so years ago and see what the magnificent 7 or 8 companies in the S&P 500 have achieved amongst mostly remaining 490 plus companies.

So much for diversification?

Look at exponential technology companies like Apple, Amazon, Facebook, Google, Microsoft, Netflix and more recently Nvidia and Tesla have impacted our world.

Remember what the yellow pages or road maps looked like before Google digitized? Or what about buying products before Amazon took everything online? What about vinyl records before the likes of Apple and Spotify streamed let alone tapes and videos that the likes of Netflix also digitized.

Australian digital assets crystal ball

Executive Chairman of US Software enterprise company Micro Strategies Michael Saylor wrote a book called ‘The Mobile Wave’ back in 2010 which was looking back now crystal balling at its best.

Case in point is that in a high inflationary environment innovative technologies are at the greatest simply because they are deflationary in nature to combat inflation.

The disruption of Australian digital assets

With the convergence of AI, Robotics, Blockchain, Autonomous vehicles etc etc the next 10 years could rhyme like the roaring 1920’s some 100 years ago with the exponential explosion to come.

Remember before disruption comes deception which as Peter H. Diamandis explains…Initially, exponential technologies may seem slow to progress, but they accelerate rapidly, catching many off guard.

A warning to us all in the financial services industry don’t be the one caught off guard. But let’s leave the last words on this from Amazon Founder Jeff Bezos.

“There is no alternative to digital transformation. Visionary companies will carve out new strategic options for themselves — those that don’t adapt will fail.”

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Arthur Panagis
Author, Founder, Wealth Coach and Financial Strategist

B.Bus (Accounting)
Grad Dip (Financial Planning)
Professional Certificate in Self Managed Super Funds
ASX Listed Equities Accreditation
Tax (financial) Advisor

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Disclaimer: This article is factual information only. It is not intended to imply any recommendation about any financial product(s) or to constitute tax advice. The information in the article is reliable at the time of distribution, but may not be complete or accurate in the future.