The latest hot topic in blockchain technology is something called Real Estate Tokenization. Here’s how it affects you as a crypto real estate investor.
What’s new in the real estate investment world? This time, it’s tokenization.
There is yet another term for you to learn about between crypto real estate and purchasing the non-existent, intangible property.
According to Fast Company, asset tokenization means “dividing [an asset] into easily divisible, fungible tokens that can then be exchanged at users’ discretion.”
Essentially, it’s a way of making any physical or digital asset available for purchase with cryptocurrency. This implies that a tokenized house with 100 digital tokens represents a 1% ownership interest in that property.
The pros of real estate asset tokenization
1Speed and cost-effectiveness
Since blockchain technology can make lightning-speed transactions at a lower cost, it’s easy to see why an investor would want to choose this option.
In general, asset tokenization doesn’t have many associated costs, making it intriguing for people to invest in.
2Higher liquidity
As an investor, one of your concerns would be liquidity.
Getting rid of a small portion of ownership in a property is considerably simpler than getting rid of an entire asset.
3Security
Unlike other data storage, cryptography and the distribution registry store and protect blockchain data.
This makes it harder for anyone to hack or tamper with the data.
The future of tokenization
Real estate tokenization opens up many growth opportunities for investors.
As the barriers to entry for real estate investing lower, we will see more and more people venturing into the new world of digital real estate and tokenization. You can tokenize any asset and made it available for investment using blockchain technology.
The potential for tokenization is enormous. It makes investing in assets more manageable and more accessible. However, it also has the potential to change the way we think about ownership.
But for now, we’ll have to wait and see how everything unfolds.
Disclosure: This content is intended to be used for educational and informational purposes only. Before investing, you should always do your own analysis based on your own financial and personal circumstances before making any investment. Grant Cardone is an industry expert who has been investing for over 30 years and his opinion is based solely on his own personal experience and circumstances. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment. Investment involves great risk and there is no guarantee of performance or results.
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