Earn Your First Bitcoin Sign up and get $12 Bonus Referral bonus up to $3,000
There are many people out there that simply associate blockchain with crypto and digital currencies, but it works quite well when performing transactions and other activities pertaining to real estate.
Real Estate Is the Way to Go
In America, real estate has always been king. It’s often said that if you can buy your own house, you’re pretty much set for life. In addition, while everyone talks about the stock market and gold and other precious metals, most of the rich people in this nation invest in real estate. From Donald Trump to Warren Buffett, having properties to your name is the way to become a billionaire.
Several analysts think blockchain and real estate could make a good team, and that bringing the latter onto the former would make it more accessible to everyday investors that haven’t had clear and concise access to the American dream. A new report from Citigroup states the following:
Traditional real estate often struggles with poor transparency, illiquidity, and multiple intermediaries. Blockchain could be a good fit as a single shared source of truth in a market with multiple players, all working with overlapping data and the need for constant reconciliation. Tokenization could also help reduce minimum investment amounts and open asset discovery.
Trevor Bacon – co-founder and CEO of real estate investing platform Parcl – also threw his two cents into the mix. He said putting real estate on the blockchain could ensure its future as a yield source through decentralized means. He stated:
You can tokenize a loan, a house, a building, or car loans. You can put that on the blockchain and it’s a much more efficient way to do stuff… We’re allowing people to speculate, hedge, bet, and trade on real estate prices much like they would on any other type of stock or derivative. Real world assets are a new theme. It’s a moniker for what people are doing, using the blockchain for real utility rather than NFTs or gaming… From an operational perspective, it’s more efficient. It’s all done through software. You could issue a mortgage directly instead of going through a bank. It’s governed through smart contracts and enforceable by software, not people.
Inaccessible for Over a Year
For the last year and a half or so, real estate in America has been virtually inaccessible. A big reason for this is because Joe Biden – the current commander-in-chief – has instilled economic policies that have ultimately brought the nation to its knees. Inflation is at an all-time high, and thus the Fed has been forced into a position of constantly having to hike rates.
These rate hikes have hurt people’s finances and made it so that many of them can no longer afford things like cars and homes, thus edging them out of major ownership opportunities.
