According to the founders of Unicoin, an asset-backed cryptocurrency, Europe is currently the leading market for exchanging property for cryptocurrencies. A significant portion of global wealth is tied up in illiquid assets, which are often sold at a discount as a result.
A recent study by the Boston Consulting Group highlights that “tokenization” — the use of cryptocurrencies and blockchain technology — has the potential to transform illiquid assets like properties into capital flows. This market is projected to grow to $16 trillion (€14.85 trillion) by 2030.
While many investors recognize the benefits of diversifying their portfolios with digital assets like cryptocurrencies, the FCA emphasizes that these assets are highly volatile.
“Tokenizing” involves converting tangible assets into digital fragments using blockchain technology. These tokens operate on the blockchain via smart contracts, and a single token can represent an entire object or a portion of it.
Despite the rising interest in cryptocurrencies and blockchain-based digital assets, crypto investments remain complex, making it challenging to fully grasp the associated risks. With nearly 9,000 cryptocurrencies in existence, the UK’s Financial Conduct Authority warns that all of them are high-risk and speculative investments.
Silvina Moschini, founder of Unicoin and Unicorn Hunters, agrees with the cautionary stance on cryptocurrencies, despite having recently facilitated the highest-valued property transaction involving cryptocurrencies to date. The deal, exceeding $500 million, involved the Bahamas’ Long Island and Andros Island, and was fully paid for using Unicoin.
Unicoin is the cryptocurrency of Unicorn Hunters, a firm that uses crowdfunding to identify start-ups they believe will eventually surpass a valuation of $1 billion (€930 million). According to their market analysis, two of the top three countries offering properties for purchase with cryptocurrencies are in Europe. Spain had 289 listings, Thailand 227, and Portugal 130.
Properties can be tokenized, allowing them to be divided into smaller, tradable digital assets. This increases liquidity, enabling fractional ownership and making real estate investments accessible to more investors.
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