Blockchain Will Disrupt World's Biggest Market – Real Estate Is About To Be Tokenized



so let's begin with a question what do 90% of the world's millionaires have in common let me add that this is something that you might want to consider if you're not among those select few have your guess the answer is that real estate has played a role in creating 90% of the world's millionaires stands the reason that real estate is one of the most effective wealth building vehicles and is an important component of a well diversified portfolio indeed the home acts as a literal representation of the family's wealth building goals but let's look at the entire world here comparing the global real estate universe to a lot of the other significant source of wealth we can see that current estimates of agricultural commercial and residential real estate far eclipse a lot of the other markets out there some projections place the total real estate market to be worth about four hundred and twenty six trillion dollars by 2025 of course equities and gold grew much faster in value than real estate the rising wealth and emerging economies means there's more capital at large and real estate is viewed as a safe store of it so of course this channel is devoted to cryptocurrency and blockchain technology which for those who don't know is a immutable distributed ledger technology in which transaction data is recorded the benefits of this are transparency traceability accessibility of hands security and cost reduction most importantly not to mention irrevocable documentation of the processes involved while I know that might sound like a lot of jargon what's important to know is that blockchain combined with real estate can eliminate the need for intermediaries like lawyers and agents by providing a means of property verification and payment to buyers payment for a property using a blockchain can help buyers bypass bank fees it also cuts the fees associated with escrow by using smart contracts that can be customized according to the users needs and while these things are really great you know increasing efficiency reducing cost providing transparency these are all very desirable attributes what excites me most about combining real estate with blockchain is that tokens of either nature make proud ownership and fractional sales of real estate pasta here's why that's important and here's why you need to know about it first off let's establish what tokenization means sometimes we refer to things like security token offerings security tokens or digital security offerings but skipping past the jargon all you need to know is that tokenization is the process of representing fractional ownership interest in an asset be that a utility asset or a security asset with a blockchain based token you're still with me good and if you're not let's make it practical so that you can better understand so what excites me is that real estate organization gives us a process of representing an ownership interest in real estate with a token why that's important why this is going to be so transformative is inherently what the token represents tokens can represent ownership in the underlying asset giving you equity in a legal structure that owns the asset maybe even a stream of income based on cash flows from the asset the list goes on so making it very clear the average retail investor probably can't afford whole properties or even have access to commercial real estate offerings but transferable and tradable tokens representing shares and ownership gives us a new liquid way for property and land owners to sell or enable growth financing giving access to a broader investor crowd giving you access to invest in a real estate property with ten dollars for example so if every month you want to set aside a certain amount of your paycheck to invest in the largest and one of the most mature markets in the world where there is clearly the ability for the underlying asset to depreciate and most importantly it's a physical asset that people find tell you it people aren't just gonna stop living in homes any time soon real estate has value that has permanence you know companies can fail financial instruments are somewhat speculative commodities can shift with the global markets but real estate stays steady to in combined with real estate is going to change the world because it's going to create liquidity for an investment pool the vet has traditionally been very illiquid it's going to take what is traditionally a very paper process and give it the efficiency that is inherent when you turn something digital and if you've been around this channel you've probably heard me talk about security tokens before and a very common complaint or criticism I hear about security tokens is that they're a playground for the rich you know this is because at least in the u.s. we have accredited investor laws where basically unless you're a millionaire belonging to only eight percent of American households you by law cannot take part in capital formation SEC exemption offerings such as a reg D offering and this is true in the case of a security asset like equity in a company it's an unfortunate reality of the investor laws we have in the US but here's something that I don't see talked about a lot real estate is not a security real estate is an asset even if we tokenize a piece of real estate it does not become a security therefore the floodgates open and everybody can invest of course there are some caveats and the technology and market needs to mature to allow this to happen but hopefully this video has given you some insight as to market trends to be aware of emerging technologies to keep track of and quite honestly one of the best opportunities I think we'll ever seen our lifetimes and if you're involved in the cryptocurrency industry like I am this represents one of the best developments for this space that we could ever hope for introducing blockchain to a market as big and mature as real estate is really going to prove to the world the legitimacy of this technology so I want to hear your opinion what do you think about this emerging technology do you see yourself using it to leverage your wealth creation are you part of the real estate industry and do you agree with the benefits affronted by this technology integration let's discuss in the comments below but if you're looking to take the discussion and education a little bit further that's what we offer at readystate crypto we have a whole class devoted to security tokens and we frequently talk about the benefits of security tokens in our discord which is part of our omnia service you're looking to stay ahead of the cryptogram I highly recommend you come check us out at Ready Set crypto comm and if nothing else thank you so much for watching please like and subscribe to our channel if you haven't already and I hope to see you in the next one Cheers [Applause]

35 Replies to “Blockchain Will Disrupt World's Biggest Market – Real Estate Is About To Be Tokenized

  1. Appreciate the content you fellas put out. Is RealT going to have a token offering soon? Heard your short video on them and it looks potentially like a solid project. Thank you in advance.

  2. Enjoyed the video Mav, but the STO market leaves a disgusted taste in this average Joe, retail, investor's mouth. Breakdown:
    1. US residents – are assed out
    2. Can't use a VPN to circumvent because KYC is requires (circle back to 1.)
    3. An exception, a US could invest unfortunately as you stated you have to be a "millionaire"

    If I am wrong and there are opportunities, I'd love to listen.

  3. What are your thoughts on Chromia and Own (CHX)? My issue with security tokens is that they all rely on regulations. I feel that the security platforms like polymath, own and such are still quute speculative.

  4. The concept makes sense but what happens the real estate market tanks like it did in 2008? I think it would make money for awhile but you better know when to bail out.

  5. There is plenty of cake to go around. Asset backed tokens will reward many out there for their hard work and research and getting into this behemoth early. Due to regs, many can only buy the underlying utility tokens right now. Hopefully when the space gains more exposure, liquidity pools will help increase the value of the utility tokens. That is my hope. Great vid man.

  6. Great video. The concept really makes sense to me. If I understand correctly it is a token backed by real estate. Looking for ways to get in on the ground level.

  7. I have been telling anyone who will listen that I believe real estate tokenization is going to be massive. Propy is an interesting project. They are utilizing blockchain technology from start to finish in residential real estate transactions. They have closed some deals, using crypto as the payment mechanism, so it’s an actual use case.

  8. you have been a step off for me early in the game for my research starting gate back a year and a half ago. Was mesmerized by your intro from day one. My brain on Blockchain. You got me and I refer others to you and Altcoin Daily on a regular basis. My favorites. Glad you are putting out with more frequency again.

  9. Tokenizing real estate is fine. How does one buy back the real estate? Without a clear path to full ownership after all tokens are sold (perhaps for dismantling and reconstruction by a wealthy builder interested in the property) it is difficult to pull off. What if even one token holder doesn't wish to sell? The new construction can't happen? Several open questions.

  10. I have to be honest, I haven't really given much thought to real estate on blockchain until now. It's crazy how revolutionary this would be. Does anyone know of some good projects looking to do this?

  11. So what would be the difference between having a token represent my portion of a real estate investment vs. my outright owning a piece of any real estate I might choose to invest in? Are you saying it's all about streamlining that process or are you suggesting that with the advent of tokenization, more people could more easily 'pool' their resources by way of STO's so investing solely in pieces of property as opposed to a whole house/apartment complex can not only become more 'available' to someone who doesn't have a ton of dough to invest up front, but tokenization can also bring these kinds of people together, opening up a much broader base of investors to maybe invest in something like a subdivision of homes or a new apt. development in any given part of the world?

  12. Hi all. Great video. Absolutely blockchain tech will change the world in many ways, including real estate. The points made in this video about average people being able to invest in tokenized real estate because it's not a security is a great point. But also consider other valuable physical assets that can be tokenized and invested in too, art, jewelry, cars, etc. Enjoy the ride all.

  13. I can't imagine a piece of land owned by 100 people or so. If I own a property, I have the full right to access it also. How can ownership of property be shared ?

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