I am curious to know what you think about the crypto space and how that could play into CRE.
For example, do you think that someone would be able to start some level of a REIT in the crypto space via DAOs and Smart Contracts? Current security laws would cause some issues, but could this be done?
I feel most of the fear in the Crypto space is the aspect of a fiat currency, but if it is backed by real estate would that change the attitude towards the respective coin? Therefore reducing volatility and acting as a stronger store of value?
In no way do I really know how someone could orchestrate this, but an interesting thought. IMO it would be very easy to raise capital this way (worldwide). The tough part would be able to source the deals.
Interested to hear your thoughts.
Hey Chasing_Promote, I think you deserve a response...heck, everyone does. We're listening, sorry about the delay ...my best guess at places on WSO that could help:
More suggestions...
I hope those threads give you a bit more insight.
The point of crypto is to be a form of currency and to be decentralised. A secondary use is as a store of value (t. Russia)
Unfortunately, as per Newton's Third Law, with every action comes an equal and opposite reaction. In this case, sure, you will be able to use crypto to put a down payment or perhaps to pay the full price for a house. However, this ultimately destroys its' fundamental aim, to be decentralised.
When crypto is backed by a regulated government, as it will be if it is implemented into the real estate market, it ultimately loses all purpose aside from being a store of value (for which gold is already strong). By using, let's say, Bitcoin, for this purpose, every transaction will be ultimately taxed. On top of this, all transactions can be monitored when over the Bitcoin blockchain. This is unattractive to many in the housing market as privacy is essentially thrown out the window. It's safe to say that through this implementation through a regulated body, albeit nice as a concept, will ultimately just be another version of fiat, and therefore useless!
https://www2.deloitte.com/us/en/pages/financial-services/articles/block…
There's a lot of aspects of real estate that can transition to crypto in ways people don't really understand. A blockchain is just a digital ledger (i.e. accounting). CRE as an asset class revolves around taking in revenue (rents), paying expenses, and generating net income. That's data that can be displayed on a blockchain, which enables quicker and easier analysis on the financials of any particular deal. Legal contracts that determine the terms of a sale, mortgage, etc will eventually transition to language which can be read and interpreted by a computer.
There's a handful of web3 real estate companies trying to figure this out. I recommend that you check out https://www.balconydao.com/ , jump into their discord so you can ask questions, and watch their chat at Colombia University
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