Tokenization! A New Frontier... Real Estate, NFTs and Bonds!

By teutonium | Teutonium's Posts! | 22 Jan 2020

Tokenization...

Ever since I was a little kid I wanted to invest! I wanted to make my money work for me, but I always got shut down... "You are going to lose all your money", "The game is rigged!", "What are you going to do about taxes!", so many excuses! The worst one was probably the one where people told me "only rich people can invest!" But to a certain extent, it wasn't an excuse, at least not back then...

Back then the internet was just starting, if I wanted to invest I would have to either go to a bank or go to a big city and find an investment firm. I was a kid, it was near impossible to do either of these things, especially since I lived in the countryside and I was a minor, and even worse is that most banks only allowed investors with thousands of dollars, I didn't have thousands when I was 12 or 14, so in a sense, I did indeed have to be rich to be able to invest! But not anymore!

Much has changed since then, with the rise of the internet new opportunities appeared, peer2peer lending, crowdfunding, online brokers, so many opportunities to invest! And these opportunities are only going to expand with MoIP.

You are probably wondering, what the hell is MoIP... not many people know of this term, MoIP is the term that Alex Mashinsky, the creator of VoIP and now CEO of Celsius, uses for crypto, MoIP(Money over IP)! A whole internet of value running on top of the internet protocol!

It's going to be amazing, so many new opportunities and vehicles of investing. Millions of smart contracts distributing, accumulating, and exchanging value. Proof of stake and proof of work cryptos that allow people to invest and have a stake in the internet of value, either through actually staking or through mining! Tokenization of virtual and real-world items, tokenization allows micro-investments to an extent never before seen!

Tokenization allows one to invest 100 bucks, for example, in a portion of a house! You might be thinking that this is far fetched and still a long time away... what if I told you that it isn't! It's already happening right now!

RealT is a project built on top of Ethereum that buys houses, the deed is put into an LLC, that LLC is tokenized on Ethereum and the tokens are sold to any investor that wants to buy a portion of the house. By buying a portion of the house the token hodler gets a portion of the rental income which is sent via stablecoin to the wallet where the token is. The company, RealT, manages the propriety and tenants for a fee of course.

One of Realt's houses was just recently sold out. A house in Detroit worth around $63.000 was divided into 1000 tokens and sold to investors. All the information is on the website and on the blockchain, the house is earning around $10.200 per year through rent and each token is getting around $10.20 per year, each token was sold for $63 which puts the ROI at around 14%. And this is just one of the many houses available on the website, with photos and everything! I advise everyone to explore their website, if not to buy than to at least know of the new business models that tokenization on a blockchain allows!

Tokenization of virtual items is also already happening, let's start with one of the biggest games on blockchain, Steemmonsters!

Steemmonsters is a card game that runs on Steem, all cards are tokens that run on the Steem blockchain, the tokens can be bought, sold and leased! I have some cards that I'm delegating to another player and we split the rewards 50/50, so basically, I invested in the cards and someone else is playing and earning rewards.

Enjin is also picking up the pace. Enjin has a couple of games that will be listed on Steam as soon as they launch, Steam is one of the biggest gaming platforms in the world and it will surely bring many players into the crypto sphere. Many of these games are going to have functions to lease tokenized items, enabling investors to invest in the items and earn passive income from them.

Bonds are also being tokenized on blockchains. Santander, a Spanish multinational bank, launched a bond worth $20 million that went through the full life cycle of a bond all on a blockchain, everything transparent and honest, something that isn't normal in the banking industry...

These are just the start of a tokenized world! Many think tokenization is just a fad, but in my opinion, it's not... tokenization will change the whole world, tokenization is just starting! And we can't even comprehend the scope of what is going to come out of this!