Today, most of the world's wealth is locked in illiquid assets, so they typically trade at a discount.
“Tokenization” using cryptocurrencies and blockchain technology is expected to turn illiquid assets into capital flows, with this market expected to grow to 16 trillion by 2030, according to a recent study by Boston Consulting Group. It is expected to grow to USD (14.85 trillion euros).
Although the use of these new digital tools is not yet widely regulated in the United States; Europe's new law will come into force from 2025 This could lead investors to reconsider the idea of tokenizing real-world assets such as real estate, high-value art, and stocks.
“Tokenization” is a method of converting a tangible asset into a digital piece of itself using blockchain technology. Tokens work on the blockchain through smart contracts, allowing one token to represent an entire object and parts of it.
The largest real estate transaction involving cryptocurrencies to date is a $500 million real estate deal involving Long Island and Andros in the Bahamas. All of this cost was paid for with a cryptocurrency called Unicoin.
Unicorn is a cryptocurrency from a company called Unicorn Hunters. This company uses crowdfunding as a means of finding startups to invest in, which he believes will ultimately be valued at more than $1 billion (930 million euros). According to their market research, two of the top three countries with properties that can be purchased with cryptocurrencies are in Europe. Spain offered 289, Thailand 227 and Portugal 130.
Silvina Moschini, founder of Unicoin and Unicorn Hunters, spoke to Euronews about the ups and downs of the current crypto investment environment and her journey in the real estate market.
To learn more about cryptocurrencies in the real estate market, watch the video above.
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