I think blockchain is revolutionising illiquid asset industry by making investment possible for everyone in this alternative asset category. The industries which will benefit the most are the real estate industries, Music and Arts to name a couple. I had always wondered during my university days, how can I start investing in real estate so that I need not wait until my years of savings can help me buy a property or two. It was not a possibility at all considering the fact that you need a down payment and then again getting a bank loan is a challenge being a student. But, look where we are now, blockchain, with the help of programmable tokens are changing the world, especially real estate investment in this case. Now, a student can invest by buying few tokens with his pocket money and slowly start accumulating them and plan for his future. They don’t need a bank, no need for down payment and no need for legal hassle.
The way Tokenization is changing alternate asset segment is fantastic. Let me give you an example, I have a house which I bought it at 100k usd, random number for the example. Now, if I had to sell it to someone else, tradionally, i will have to go through property listing service, broker, legality of it and even more headache before I finally get to sell it for cash. So, in short liquidating your property asset is not easy. Hence, they are called illiquid assets. But, let me tokenise my property by creating 100,000 tokens, each having value of 1 usd. So, by going on Blockchain and having tokenised my property, say, im offering 50,000 tokens for sale, I’m more likely to get more investors who can buy my tokens and either sell it to others or hold depending on their interest. But, the magic here is that, I got to liquidate my property for cash quicker than the traditional method. Even a student who wants to invest, is eligible to do so. Anyone can invest and that’s the game changer in this industry.
I will explain more in my next post on how we can do this technically and what n all we need to tokenise an asset. I hope you enjoyed reading this and as always, please leave a comment or query and I’m more than happy to address the same.
Till then, happy blockchaining...
