• Tokenizing assets like real estate is a symptom of bad money which perpetuates wealth inequality.
• Asset tokenization will drive prices higher and further out of reach for the average citizen.
• Bitcoin provides an actual store of value, which will ultimately collapse housing to its utility value.
The Problem with Real Estate Tokenization
The demand for tokenizing assets such as real estate is not a solution to the problems caused by bad money, but instead it is a symptom of these issues that fuel wealth inequality. Rather than being used as a store of value, real estate should be reduced to its utilization as a dwelling or place of business in order to solve this growing gap between the rich and poor.
Side Effects of Widespread Asset Tokenization
Blockworks highlighted this advancement in technology without properly addressing the potential side effects that would come along with asset tokenization. This process has been touted as a way for those who cannot afford to purchase their own home to participate in the real estate market; however, the reason why houses are so expensive in the first place is because they are used as stores of value due to years of fiscal and monetary alchemy weakening people’s purchasing power. Therefore, crowds pushing money into this market via asset tokenization will only make matters worse by driving up prices even further, creating a self-fulfilling prophecy where more investors chase gains from rising values.
Relying on Legacy Systems
This process relies on legacy law enforcement and judicial systems enforcing property rights for these investors; yet it appears that these systems are becoming increasingly hostile towards cryptocurrency industry organizations overall. This shows how blockchain technology does not have any meaningful link to reality when it comes to native contract enforcement – meaning that rug pulls could still occur amongst token holders despite their investments being recorded on a ledger or record system (such as Ethereum).
Bitcoin vs Tokenization
Rather than blindly tokenizing assets, Bitcoin seeks to fix underlying monetary issues that lead individuals down this path in the first place by providing an actual store of value – draining away monetary premiums accrued over time due to our broken monetary system so that housing can eventually collapse back down into its utility value again.
In conclusion, asset tokenization may appear like an attractive solution on paper, yet there are many hidden dangers involved with this process – particularly when relying upon legacy systems rather than Bitcoin’s ability to restore purchasing power back into people’s hands again which can reduce housing costs accordingly too.