To a seasoned investor in assets like commercial real estate, the tremendous buzz surrounding NFTs, fuelled by million-dollar art purchases and cryptocurrency billionaires, might make NFTs, or nonfungible tokens, seem like a novelty. However, we know that even popular novelty items aren't enough to sustain a long-term business.
A tiny group of developers is seeking to pioneer ways to trade real-world real estate assets with NFTs amidst the development and investment rush into new digital assets and platforms, such as bitcoin and the metaverse.
Victor Lund, the founder of WAV Group, a new technology and NFT consultancy firm located in California, believes real estate NFTs are a specialisation that will fast emerge, especially given the heightened interest in the field among developers, private equity firms, and banks last year.
Speculators, investors, and followers of cryptocurrency hope to find a safe haven for their earnings and convert large sums of digital money into something more substantial in the future. According to Lund, there is currently about $2 trillion invested in crypto and an estimated $300 billion in NFTs, all of which is essentially "cash on the sidelines."[1]
However, before NFT-backed real estate sales can be widely used, they must be permitted and standardised across a wide range of jurisdictions. There is some reliance on the expertise of local government, as with many digital enterprises aiming to transform the way properties are marketed. Therefore, many organisations and people are devising new ways to make the purchasing and selling process more high-tech and efficient whilst avoiding unnecessary government intervention.[2]
[1] Sisson, P. (2022, January 11). One Token Over The Line: Are NFTs The Future Of Buying And Selling Real Estate?Bisnow. Retrieved 12 January 2022, from https://www.bisnow.com/national/news/top-talent/one-token-over-the-line-are-nfts-the-future-of-buying-and-selling-real-estate-111460
[2] Sisson, P. (2022, January 11). One Token Over The Line: Are NFTs The Future Of Buying And Selling Real Estate?Bisnow. Retrieved 12 January 2022, from https://www.bisnow.com/national/news/top-talent/one-token-over-the-line-are-nfts-the-future-of-buying-and-selling-real-estate-111460
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