Europe is the hottest market for real estate for cryptocurrency exchanges, according to the founder of asset-backed cryptocurrency Unicoin.
advertisementCurrently, most of the world's wealth is locked in illiquid assets, which typically trade at a discount.
Cryptocurrencies and “tokenization” using blockchain technology promise to turn illiquid assets such as real estate into capital flows, and this market is expected to grow to $16 trillion (€14.85 trillion) by 2030, according to a recent study by the Boston Consulting Group.
The use of these new digital tools is not yet widely regulated in the United States, New laws set to come into force in Europe in 2025 This may cause investors to rethink the idea of tokenizing real-world assets such as real estate, high-value art, and stocks.
“Tokenization” is the practice of using blockchain technology to turn tangible assets into digital fragments. Tokens work on the blockchain through smart contracts, allowing a single token to represent both the whole and part of an object.
However, with the recent surge in interest in cryptocurrencies and blockchain-based digital assets, investing in cryptocurrencies can be complicated and understanding the risks involved can be difficult.
There are approximately 9,000 cryptocurrencies in existence and, according to the UK's Financial Conduct Authority, they all carry a high degree of risk and are speculative as investments.
While many investors see the benefit of diversifying their portfolios with digital assets such as cryptocurrencies, the FCA highlights that many of them are highly volatile and even influencer posts can have a significant impact on their price. “You should not invest money in cryptocurrencies that you cannot afford to lose,” the FCA says.
Silvina Moschini, founder of Unicoin and Unicorn Hunters, agrees with the latter opinion, having recently completed the largest crypto-related real estate deal ever, a $500 million-plus property transaction involving the Bahamas islands of Long Island and Andros, paid entirely in a cryptocurrency called Unicoin.
Unicorns are a cryptocurrency used by a company called Unicorn Hunters to crowdfund and invest in startups that are expected to eventually be valued at more than $1 billion (€930 million).The company's market research showed that two of the top three countries with the most properties available for purchase with cryptocurrency were in Europe: Spain with 289 properties, Thailand with 227 properties and Portugal with 130 properties.
Silvina Moschini spoke to Euronews about the ups and downs of the current crypto investment environment and her experiences in the real estate market.
To learn more about cryptocurrencies in the real estate market, check out the video above.
Disclaimer: This information is not financial advice. Always do your own research and make sure it suits your specific situation. Also, please note that we are a journalistic website and aim to provide the best expert guides, tips and advice. Any reliance you place on the information on this page is entirely at your own risk.
