Why Real Estate makes an ideal cryptocurrency
In today’s unstable financial markets investors and everyday savers are limited to fixed, no income interest accounts that are not inflation proof and have stagnated at all-time low levels of interest. Complex investments such as hedge funds require substantial initial investments and have high qualifications that provide little or no liquidity while being vulnerable to bankruptcy.
The proposition of blockchain technology are evolutionary, not revolutionary. Blockchain is not proposing the whole-scale reinvention of modern money and banking, but Instead, offer a current approach to the centuries-old tradition of building wealth by acquiring assets of solid and tangible value.
Debt free, income-producing real estate has always had intrinsic value and been inflation proof while protecting savers wealth.
Real estate has a high tangible asset value.
There will always be value in your land, and value in your home. Other investments can leave you with little to no tangible asset value such as a stock which can dip to zero, or a new car which decreases in value over time. Real Estate has shown a stable rate of return and steady appreciation over time.
What is Inflation?
The fractional reserve system of monetary expansion is inherently inflationary. Inflation is the outcome of an ever-expanding supply of money without a corresponding development of goods and services in the economy.
The toxic combination of increasing amounts of non-asset-backed FIAT money with no corresponding increase in real economic growth ultimately leads to unsustainable inflation. Eventually, a tipping point culminates. And while the catalyst may vary, the outcome is always the same — hyperinflation and banking collapse, as illustrated in the recent history of countries like Venezuela, Greece, Russia, and Argentina.
Inflation is defined as a sustained increase in the general level of prices for goods and services in a county and established as an annual percentage change. Under conditions of inflation, the costs of things rise over time. Put differently, as inflation rises, every dollar you own buys a smaller percentage of a good or service. When prices rise, and alternatively when the value of money falls you have inflation.
The key to making money in an inflationary environment is to hold investments that increase in value at a rate more than the rate of inflation.
Real estate is a popular choice not only because rising prices increase the resale value of the property over time, but because real estate can also be used to generate rental income. Just as the value of the property rises with inflation, the amount tenants pay in rent can be increased over time, enabling the revenue generated by an investment property to keep pace with the general rise in prices across the economy.
Why are tokenized assets so appealing?
There are many advantages to tokenized securities. Currently, the process of moving stocks from one broker to another can take anywhere from 3 days to 3 weeks. The transfer of tokenized assets can take anywhere from 3 minutes to 3 hours and is a permissionless transaction that does not involve the bureaucracy of filling out a form and asking permission to move your asset.
Today brokers hold and control your securitized assets. With digital shares and tokens, the investor gets to take back direct control of their asset, much like Gold. But unlike Gold, digital assets can be divided and fractionalized for ease of use and exchange.
In the current system, it is impossible to trade public equities peer to peer. Blockchain applications like Bitcoin and Ethereum can serve as rails for assets transfers. Blockchain will ultimately change how Wall Street and global capital markets work and interact with each other and the public.
Today’s stock market system is very inefficient and centralized. Crypto assets have become an appealing investment alternative to investors for all these reasons.
In conclusion, it is easy to see why a cryptocurrency backed by Real Estate would be so appealing. The only thing today’s real estate assets lack is liquidity. The tokenization process provides liquidity. While much of the crypto market is very volatile and speculative, Real Estate assets can provide the slow and steady growth of both assets increasing in value and the income these assets generate. You can see how these two forms of assets classes combined, working hand in hand, will create a whole new way of doing commerce in the future. Fiat currency will always be necessary to derive Uvalue to these assets. However, tokens will provide a new medium of exchange. We believe Real Estate will pave the way, along with other tokenized holdings for this new emerging era.
What is Inflation?
The fractional reserve system of monetary expansion is inherently inflationary. Inflation is the outcome of an ever-expanding supply of money without a corresponding development of goods and services in the economy.
The toxic combination of increasing amounts of non-asset-backed FIAT money with no corresponding increase in real economic growth ultimately leads to unsustainable inflation. Eventually, a tipping point culminates. And while the catalyst may vary, the outcome is always the same — hyperinflation and banking collapse, as illustrated in the recent history of countries like Venezuela, Greece, Russia, and Argentina.
Inflation is defined as a sustained increase in the general level of prices for goods and services in a county and established as an annual percentage change. Under conditions of inflation, the costs of things rise over time. Put differently, as inflation rises, every dollar you own buys a smaller percentage of a good or service. When prices rise, and alternatively when the value of money falls you have inflation.
The key to making money in an inflationary environment is to hold investments that increase in value at a rate more than the rate of inflation.
Real estate is a popular choice not only because rising prices increase the resale value of the property over time, but because real estate can also be used to generate rental income. Just as the value of the property rises with inflation, the amount tenants pay in rent can be increased over time, enabling the revenue generated by an investment property to keep pace with the general rise in prices across the economy.
Why are tokenized assets so appealing?
There are many advantages to tokenized securities. Currently, the process of moving stocks from one broker to another can take anywhere from 3 days to 3 weeks. The transfer of tokenized assets can take anywhere from 3 minutes to 3 hours and is a permissionless transaction that does not involve the bureaucracy of filling out a form and asking permission to move your asset.
Today brokers hold and control your securitized assets. With digital shares and tokens, the investor gets to take back direct control of their asset, much like Gold. But unlike Gold, digital assets can be divided and fractionalized for ease of use and exchange.
In the current system, it is impossible to trade public equities peer to peer. Blockchain applications like Bitcoin and Ethereum can serve as rails for assets transfers. Blockchain will ultimately change how Wall Street and global capital markets work and interact with each other and the public.
Today’s stock market system is very inefficient and centralized. Crypto assets have become an appealing investment alternative to investors for all these reasons.
In conclusion, it is easy to see why a cryptocurrency backed by Real Estate would be so appealing. The only thing today’s real estate assets lack is liquidity. The tokenization process provides liquidity. While much of the crypto market is very volatile and speculative, Real Estate assets can provide the slow and steady growth of both assets increasing in value and the income these assets generate. You can see how these two forms of assets classes combined, working hand in hand, will create a whole new way of doing commerce in the future. Fiat currency will always be necessary to derive Uvalue to these assets. However, tokens will provide a new medium of exchange. We believe Real Estate will pave the way, along with other tokenized holdings for this new emerging era.
www.USRealcoin.us
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