AI and tokenization will lead the "new long tail capital market" in 2025.

Author: Martin Young, CoinTelegraph; Translated by: Wu Zhu, Golden Finance

Bitwise CEO Hunter Horsley stated that with the help of artificial intelligence and tokenization, we could see a boom in small, niche businesses by 2025, more companies adopting Bitcoin, and a potential "resurgence" in mergers and acquisitions that could benefit cryptocurrencies.

In a series of X posts on January 5, Horsley stated that he believes the world in 2025 is "on the brink of transformation."

Tokenization Empowers Small Businesses

In a post by X, Horsley also made some predictions about tokenization, stating that most of the focus is on the interests of the demand side, such as democratizing access to money market funds, but the real revolutionary potential lies on the supply side.

He stated that the transformative power of tokenization may come from bringing a large number of undeveloped small businesses into the capital markets.

Edwin Mata, the founder and CEO of Brickken, stated that the real world asset (RWA) tokenization industry could be the next key narrative in the crypto space for 2025. He pointed out: "Real world asset tokenization is transforming traditional markets by digitizing and trading assets like real estate, debt, and equity on the blockchain."

Artificial Intelligence Will Drive a Surge in the Number of Micro Companies

"I believe that artificial intelligence may drive a surge in the number of companies and tokenized companies," Horsley shared his views on the development of artificial intelligence in the coming year in another article.

"Artificial intelligence can significantly increase the number of niche businesses. These businesses may never go public, but they can be tokenized. It could be an important new long-tail capital market."

An example of how artificial intelligence promotes tokenization. Source: Hunter Horsley

Bitcoin Standard Company

Horsley also predicts that a major theme in 2025 will be the emergence of 'Bitcoin Standard Companies' that hold BTC on their balance sheets. "Many companies will adopt the Bitcoin standard in 2025," Horsley said.

MicroStrategy hints that it will purchase again on Monday. It is the largest corporate holder of BTC, owning 446,400 bitcoins, worth approximately $43.7 billion at current market prices.

At the end of 2024, several smaller companies announced that they had begun to develop strategies for investing in and holding Bitcoin as part of their treasury.

Lifting Control on Mergers and Acquisitions

Horsley stated that the Trump administration may "lift" controls on mergers and acquisitions for large companies, which would be beneficial for cryptocurrencies.

In an article on X on January 6, Horsley predicted that the "Seven Giants"—composed of Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—"may eventually be able to leverage their market value."

"Large companies may become larger, while medium-sized companies may shrink," he said, adding, "If that happens, I think it will accelerate the development of cryptocurrency," provided that large companies operate based on their own interests rather than those of the users.

"The premise of the concept of cryptocurrency is not to trust that large institutions will act in your best interest. The larger companies become, the more this is highlighted."