• Tokenizing assets like real estate is not a solution to wealth inequality, but rather a symptom of the problems caused by bad money.
• Tokenization will drive prices further out of reach for the average citizen and relies on legacy law enforcement mechanisms for contract enforcement.
• Bitcoin seeks to fix the monetary issues that drive a desire to tokenize assets, by serving as an actual store of value and draining the monetary premium from real estate.
The Problem with Tokenizing Assets
Tokenizing assets like real estate is not a solution to wealth inequality, but rather a symptom of the problems caused by bad money. Crowds shoving money into the market drives up prices and puts owning a home further out of reach for the average citizen. This system ultimately relies upon legacy law enforcement and judicial systems to uphold property rights, which appears to be increasingly hostile in enforcement actions against crypto industry writ large.
Issues with Ethereum
With Ethereum especially, there is no meaningful link to the real world which would allow for native contract enforcement, preventing rug pulls of these token holders. Furthermore, “blockchain” is simply a ledger or record of who owns what; it does not offer any practical solutions or advantages over traditional banking systems when it comes to asset tokenization.
The Solution: Bitcoin
Bitcoin adoption offers fundamentally different solutions than tokenizing assets; it seeks to fix the monetary issues that drive people towards asset tokenization in the first place. By serving as an actual store of value, bitcoin will drain the monetary premium that real estate has accrued over past decades due to broken monetary systems. In this way, housing costs will collapse back towards its true utility value as a dwelling or place of business–and wealth inequality can be addressed more effectively in turn.
Real estate should be reduced to its utility value as a dwelling or place of business rather than used as proxy stores-of-value if we ever hope to solve growing gaps in wealth inequality–tokenizing assets won’t accomplish this goal alone! Bitcoin adoption offers different solutions than those offered by asset tokenization; it seeks to fix underlying monetary issues while allowing housing costs collapse back towards their true utility values instead driving prices higher with crowds chasing gains through investments..
It’s important that blockchain technology companies like Blockworks properly address both sides of this issue before promoting advances in technology such as asset tokenization; both pros and cons need thorough consideration before implementation so that we can ensure lasting solutions are reached when addressing wealth inequality through financial markets.