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Buying a Piece of an Island: How Cryptocurrencies Could Change Real Estate Business
According to the founders of the asset-backed cryptocurrency Unicoin, Europe is the hottest market for trading property for cryptocurrencies.
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Much of the world’s wealth today is locked up in illiquid assets, so they are generally trading at a discount.
According to a recent study by the Boston Consulting Group, “tokenization” (using cryptocurrencies and blockchain technology promises to turn illiquid assets such as real estate into capital flows) and this market is expected to grow to $16 trillion (14, 85 trillion euros) by 2030.
Although the use of these new digital tools has not yet been widely regulated in the United States, the new laws in Europe will come into force in 2025 This could lead investors to reconsider the idea of tokenizing real-world assets, including real estate, high-value art, and stocks, among others.
“Tokenization” is a way to turn tangible assets into digital fragments of yourself, using blockchain technology. Tokens work on the blockchain through smart contracts, and a token can represent a whole object as well as a part of it.
However, interest in cryptocurrencies and blockchain-based digital assets has recently grown, and cryptocurrency investments can be complex, making it difficult to understand the risks associated with investing.
There are almost 9,000 cryptocurrencies and, according to the UK Financial Conduct Authority, they all carry high risks and are a speculative investment.
While many investors see benefits in diversifying their portfolio with digital assets such as cryptocurrencies, the FCA points out that many of them are highly volatile and even one post from an influencer can have a huge impact on the price. “You should never invest money in cryptocurrencies that you cannot afford to lose,” it seems
Silvina Moschini, founder of Unicoin and Unicorn Hunters, agrees with the latter, even though she recently made the highest-value real estate transaction ever involving cryptocurrencies: a $500 million-plus real estate deal involving the Bahamas of Long Island and Andros Island. It was paid for entirely by a cryptocurrency called Unicoin.
Unicorn is the cryptocurrency of a company called Unicorn Hunters, which uses crowdfunding as a way to look for start-ups to invest in at what they believe will eventually have a valuation of more than $1 billion (€930 million). According to their market study, two of the top three countries with properties available to purchase with cryptocurrencies were in Europe. Spain had 289, Thailand offered 227 and Portugal 130.
Silvina Moschini spoke to Euronews about the ups and downs of the current cryptocurrency investment landscape and her journey into the real estate market.
Watch the video above to learn more about cryptocurrencies in the real estate market.
Disclaimer: This information does not constitute financial advice, always do your own research to ensure it is suitable for your specific circumstances. Also remember that we are a journalism website and aim to provide the best expert guides, tips and advice. If you rely on the information on this page, you do so entirely at your own risk.