Fudbuster: Hundreds Of Trillions About To Flow In CryptosteemCreated with Sketch.

in busy •  9 days ago

Yes you read that correctly: Hundreds of Trillions.

The world of crypto-economics is about to explode. We know the purveyors of FUD do not want us to believe it. This is why the orchestrated attacks on cryptocurrencies since the start of the year. We are a part of something that is an enormous threat to the elite and the power they wield.

Thus far, they did a terrific job beating the masses into submission. Looking at the prices of the crypto world, it is obvious the FUD scared people off. Yet it is a mirage. These people know what is going on and that the more people in crypto, the more the elite loses power.

So we see the long list of people paraded out saying that cryptocurrency is a fraud, is going to zero, and will never be worth anything.

What is funny about all of this is we are about to see hundreds of trillions of dollars dumped into crypto tokens. The mantra they are espousing is not going to last much longer.

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In the past, I wrote about the true market mover in the world of crypto. It is not currency tokens like Bitcoin nor the utility tokens. These are going to be big in my opinion yet will only amount to about $10T-$20T. There is something much larger than these categories.

A deal was just announced that is going to really kickstart the introduction of security tokens. Specifically, Airswap cut a deal to tokenize the New York City real estate market. Just how big is this market?

According to the city, it is $1.26T as of July 2017.

https://www.bloomberg.com/news/articles/2018-09-11/movie-star-s-absence-shows-perils-of-show-business-in-china

The deal was cut with Propellr, a FINRA-registered broker-dealer, to enable people to create and trade tokens that adhere to the securities laws. This means that any real estate property in New York City can be tokenized and traded on the open market.

https://www.ccn.com/decentralized-crypto-trading-platform-airswap-strikes-deal-to-tokenize-ny-real-estate-market/

Ever have an inclination to own some Manhattan property but lack the funds? Soon, one will be able to take a nominal amount and buy a piece of the Manhattan skyline.

Real estate is notoriously non-liquid and slow to move. Anyone who tried to sell a house knows this. Tokenization allows for a secondary market to emerge which allows transactions with a lot less friction. Anyone who tried to liquidate a partnership agreement in a commercial property knows what a costly nightmare that is. With tokens, it is a easy as selling a share of stock.

This is one of the primary ways we are seeing crypto-economic systems start to penetrate the global asset class. New York real estate is just $1.25T of a much larger pie. This does not include Tokyo, Hong Kong, San Francisco, London, or Paris. All told, there are hundreds of trillions of dollars worth of real estate throughout the world.

Do not think for a second that most of it will not end up tokenized over the next decade.

At the same time, this is just one of many initiative to tokenize non-liquid assets. Recently, an Andy Warhol painting was tokenized with individuals buying a piece of the painting by acquiring the tokens.

Another factor is tokenization as it pertains to the income statement. I have yet to see a name for them so let us call them "Income" tokens. Using the Manhattan real estate, let us say we sell tokens to a particular commercial building. This token could represent the equity in the building. As the price of the asset rises or falls, the tokens could mirror that. However, there is nothing that says the token applies to what takes place inside the building.

Commercial properties have tenets. To keep them happy, security is provided along with cleaning people. Maintenance is done on the building while taxes are paid. Common areas are lit with public restrooms stocked. In short, the rent paid by the tenets is offset by the expenses incurred.

Using the same property, another set of tokens can be issued against the profit/loss of the building. If vacancies increase, the token could decease in value even if the security token is going up due to the overall market. Either way, both tokens are freely traded on exchanges allowing people to participate in a market they would otherwise be excluded form.

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Pixabay.com

This is something you do not hear mentioned on CNBC but it is coming. The fact that the partnership includes a registered securities agent means that the SEC will not step in. A great deal of the focus upon this industry is because ICOs are considered securities in the U.S. and those selling them are not registered.

Going through registered agents does not surprise me. I expected this would be the first step. It is going to be a gradual process before we see Wall Street excluded from the process. It will happen. There will come a time when all the tokens issued with be on decentralized exchanges that are outside the jurisdiction of any one regulator. In the meantime, Wall Street will get their hands into it driving up costs more than they should. Ultimately, people will find out that they can do the same thing without Wall Street.

To get an idea about how something like this is structured, click on this link.

https://medium.com/fluidity/airswap-technology-and-a-new-model-for-tokenized-securities-7f347818b574

Moving past this, we are going to see an enormous pool of wealth unleashed. Anyone who studied the velocity of money knows the impact it can have on an economic system. Turning hundreds of trillions of dollars loose on the open market is wealth that is presently tied up. This is going to create enormous impact.

This is all a part of the Age of Abundance. The present path is creating more inequality. Fortunately, crypto-economics is going to be the system that takes over. This development of the security token shows how average people could profit from asset classes once only reserved for the elite. Whereas the few were profiting before, now the masses can also partake.

It is the power that we have before us. This is why the FUD is so ridiculous. With hundreds of trillions of dollars created in tokens, what do you think will happen to the price of the utility tokens as more people embrace crypto-economics? Personally, I believe the movement towards mainstream will increase the price.

Prepare yourself. We are going to see obscene amounts of money enter the crypto space. In addition to real estate, you will see art, partnership agreements, and intellectual property all be tokenized.

It sure is nice to be in here already.


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This is awesome news @taskmaster4450 keep it up! ✅😏

Who loves Steem the most? Taskmaster!
https://mega.nz/#!VAcyXI4a!a5umrE9GJ4ETxmf8p9rY-hWLn9bRO7DP1vz01Vwq0eQ

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Thank you for those kind words @phoneinf.

It is nice to get that feedback.

You are right, it is best to give to the STEEM blockchain, and give, and give.

Some will like the content, some will not. But keep producing for those that do.

For most of 2017 Crypto markets went to the moon, but there were few crypto projects that were really delivering. Now the opposite is the case, crypto projects are delivering all over the place and adoption is dramatically increasing, but the markets have tanked.

A big factor is the Crypto Ad Ban by Facebook, Google etc which has cut off main street access and exposure to Crypto and allowed FUD to reign.
While I'm sure Crypto will prevail in the end, we should fight back against our attackers.
Join the Class Action against Facebook & Google to recover your losses and defend the Crypto Community!!!

I can't wait for partial ownership of real estate through crypto, it's going to be awesome

I know of Ravencoin (for tokenizing assets) and Atlant (real estate tokenization) and LAtoken. Polymath seems interested in tokenizing assets. Are there any particular projects in the crypto space worth investing in to for tokenization of assets?

To listen to the audio version of this article click on the play image.

Brought to you by @tts. If you find it useful please consider upvoting this reply.

Hi @taskmaster4450. I haven't heard this angle before but it is exiting times that lay ahead.

The FUD creators are those who probably have zero knowledge of the actual value of crypto and innovations taking place. It is inevitable the money rolls in though...I can't wait till the doubters are silenced

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Or they are fully aware of the value and are threatened by it.

I think the elite know exactly what crypto-economics can do to their power hold.

Very interesting.

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.

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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.

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.

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mind blown!
will this be possible after HF20?
always enjoy your insights

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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.

I'd like a part of that real estate tokenized market. I'd definitely like to learn more about it.

This development of the security token shows how average people could profit from asset classes once only reserved for the elite.

This is why I have been interested in the cryptocurrency Relex.

"Relex is the world's first cryptocurrency-based real estate development investment opportunity. RLX holders have the opportunity to invest in projects during the development phase, which results in exciting opportunities such as passive income, equity stakes, or proxy ownership of property."

It will be really interesting to ride this train to the moon and diversify into many different tokens. Owning a piece of New York though is really not on my list, no matter how much money might move into that market. New York is the second most ugly city I have ever seen, right after Los Angeles. But the principle idea is pretty neat.

I just visit your blog @taskmaster4450 for my daily does of motivation, up to date news and your points on where the steem blockchain is heading.
I prefer to keep quiet and sink it all in from your points to comments by your followers because it all feels real already. I believe so much in steemit I actually tend to not see any problem here. All I want to keep doing is accumulating those SP and that's what matters.
It is great to have you on Steemit @taskmaster4450!

It sure is nice to be here already.

Love reading your blog. Am loving the actifit app!

This is a well analysed post and I agree with your view point @taskmaster4450 . The conundrum, however, is when will it happen? if only we will know when and have the cash to enter fast!!!! I also think that SMT will be a big player in the game

this steemit posting is worth about a few 100 Trillion fiat coins 👏👏👏😀 glad to be in the space

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Yeah in Bolivar, it might be worth a quadrillion coins....if not, give it a week and it will be.

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😂🤣😂🤣good one, taskmaster!

Hi @taskmaster4450!

Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your UA account score is currently 5.524 which ranks you at #519 across all Steem accounts.
Your rank has dropped 1 places in the last three days (old rank 518).

In our last Algorithmic Curation Round, consisting of 487 contributions, your post is ranked at #25.

Evaluation of your UA score:
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Feel free to join our @steem-ua Discord server

We need people like you to counter the FUD(sters). I have been in crypto since May last year and on Steemit since June 2017 and - although I keep believing in this system ( for lack of a better word ), I must admit that the FUD gets me, every now and then. I have the luxury - though - that, since yesterday, I can call myself both a home owner and a crypto investor.

Thanks for your story and keep them coming! :>)