RE: Fudbuster: Hundreds Of Trillions About To Flow In Crypto
I've also thought about and discussed this topic at length.
Imagine being an early investor in crypto. The price spikes and now you have enough money to buy a house.
With security tokens, you could liquidate all your crypto to buy the house, but then use your house as collateral for a loan to get half of your crypto back.
As long as your house didn't lose half it's value you could keep both the crypto and the house while slowly paying off the loan.
You can already do this collateral based loan concept with Ethereum and MakerDAO. I've already done it multiple times. Once you figure it out it only takes a few minutes, and Ethereum is slow compared to the new up-and-comers. Also, it's much safer to use property as collateral than it is to use crypto due to extreme volatility differences.
The craziest thing about MakerDOA? The yearly interest rate is 0.5%!!! Not only that: this money gets destroyed; permanently increasing the value of Maker coins. Central banks don't stand a chance.
Or if the market was robust enough, instead of incurring debt, simply issue your own tokens against, say 49% of the house like they did with the one of the Warhol paintings.
Or to go one step further, could we get to the point where individual ownership is senseless? Tokenize the entire house and set it up so that the "owner" pays rent which is them distributed to the token holders via smart contract.
Thus risk is mitigated among many token holders and one can own "pieces" of hundreds of homes for the same money as one house again, spreading out risk.
mind blown!
will this be possible after HF20?
always enjoy your insights
No these type of tokens arent really idea for STEEM. Remember, STEEM is a specialized blockchain where the base layer is a content management system that produces tokens via the upvotes. It is a content/reward system.
The security tokens are a better for on something like Bitshares or EOS.