RealtyReturns has built a decentralized compliance protocol creating an industry standard for how asset-backed tokens are issued and traded on the blockchain. The Returns Token is an open-source ERC-20 token on the Ethereum blockchain that will be secured and backed by physical, income generating real estate properties. This creates a liquid real estate marketplace for global investors, providing a secure alternative to the volatility of the crypto markets.
The crypto markets have been volatile this year and it doesn’t seem to be letting up. Many crypto investors don’t know what they should do with their recent crypto earnings, or if they should do anything at all. Buy low? Get out? Hold for the long term? Many investors are asking these questions and don’t know which step they should take. The answer might surprise you, but investors shouldn’t do any of the three above.
One approach worth considering is putting some of your earnings in another asset that isn’t reactive to crypto markets at all, in fact it’s wise to have an asset that isn’t reactive to the stock market as well. In order to hedge your positions wisely you should allocate a portion of your earnings to something tangible, something that regardless of what’s happening in the economy or with wall-street, will still have positive growth. That investment is real estate.
Over the years real estate has not only greatly appreciated in value in the US, but it’s not correlated with the stock market at all, you can see the trends below. Since 1910 real estate has been independent of stock market highs and lows.
Aside from the fact that real estate is not correlated with the stock market, the long-term track record of real estate is positive in the US and has been since 1963. On top of that real estate (1870–2015) over the long run has actually outperformed the stock market according to the latest research titled The Rate of Return on Everything.
With US GDP growth at 4.2% and with unemployment at its lowest rate since 2000– it’s safe to say that the US economy is expected to continue its upward trajectory. With that comes more jobs and more people buying homes and leasing commercial space. This is all good news for real estate investors.
The good newsSome investors have wanted to invest in real estate recognizing the obvious benefits but have avoided doing so because of the painstaking process involved with the actual transaction. The good news is you no longer have to invest in real estate the old-fashioned way; meaning, that you split the pie with more people that you can count on your fingers.
You don’t need attorneys, brokers, lenders, appraisers, inspectors, mortgage insurer’s, registrars, and notaries. All of these barriers and middlemen are removed through tokenization of real estate.
Tokenization of real estate assetsTokenization opens up opportunities for real estate investors all over the world; the typical barriers that hindered them from investing in U.S. real estate in the past have been removed thanks to companies like RealtyReturns.
In this new age of digital tokenization transactions are much more liquid and secure. Because tokenized real estate is contained in the blockchain each hash contains all the vital information (including history of rental income) needed to make a decision on a transaction; this makes real estate investing more transparent and secure with no need for expensive third parties in the deal.
The significance of digital tokenization can’t be overstated; it’s simply transformational because of its unique ability to divide assets into bite size pieces. The ability to take an asset and divide it up into smaller individual parts that can be traded in the blockchain creates efficiency, greater utilization, and income streams to people that were denied access in the past. The second significant breakthrough that makes blockchain tokens unique as a medium of exchange is the security and ERC-20 compliance embedded in each token. This is the most widely adopted standard on the Ethereum platform.
The disruption occurring in real estate today from ICO’s like RealtyReturns is directly a result of blockchain technology and the concept of tokenization. Think of real-estate tokenization as the process of digitizing a stake or portion of a real-world asset like a property or building when someone invests with cryptocurrency. With tokenization each token represents digital ownership or a stake in the particular asset. With minimum investments of 2 Ethereum, anyone around the globe can now invest in real estate.
Due to the accessibility and demand on the Ethereum platform Returns Tokens from RealtyReturns can be traded easily among other Ethereum traders from around the globe. The ERC-20 platform is the most recognized smart contract on the Ethereum platform to date. Because ERC-20 is so widely accepted and used in the blockchain world any asset tied to a token on the Ethereum platform can be traded very easily with anyone around the world.
There may be some silver lining in crypto market volatility after all; if it helps you discover how to invest in real estate through tokenization and take advantage of income producing real estate properties and capital appreciation. This opportunity will help many working class people around the world prepare for a better retirement, save for college fund, or simply enhance their lifestyle.