HomeInvestmentsCryptocurrencyBitcoin Tanked by 8% in a Crazed Week: Get Ready for Wild...

Bitcoin Tanked by 8% in a Crazed Week: Get Ready for Wild Times


The volatile trading in the cryptocurrency market continues, with Bitcoin dropping to the $63,000 level despite reaching $66,000 the previous day.

Ether has fallen to $3,300, while XRP has slumped to 61 cents.

Experts expect this volatility to persist for several weeks as Bitcoin recovers from its recent all-time highs.

Institutional investors at Bitcoin Investor Day in New York City remain generally positive, expressing interest in portfolio construction, allocation, and determining Bitcoin’s value.

Robert Mitnik of BlackRock emphasized that while Bitcoin is a risky asset, it’s not a “risk-on” asset.

New developments in the digital finance space include BlackRock’s launch of its first tokenized fund on the Ethereum blockchain.

Efforts to “tokenize” real-world assets, such as real estate, have gained attention in the blockchain community.

Companies like Propeller and Fluidity have explored tokenizing fractions of condo ownership, but their initial project failed due to a lack of public understanding of the concept.

Despite that setback, companies like Lofty and Vesta Equity are pushing the boundaries of real estate ownership by allowing fractional investments and equity sharing agreements.

Lofty offers tokenized rental properties, where investors can purchase fractions of properties managed by decentralized autonomous organizations (DAOs).

Vesta Equity allows homeowners to sell portions of their home equity to investors through tokenized agreements.

These platforms lower the barriers to entry for real estate investment and provide alternative forms of financing and liquidity.

However, regulatory concerns remain, especially after the US Securities and Exchange Commission (SEC) crackdown on unregistered securities in 2022.

Most companies involved in real estate tokenization are structuring their offerings as LLCs issuing tokens representing ownership stakes in the underlying company, which indirectly owns the property.

Lofty claims its business model is compliant under Regulation D, restricting investments to accredited investors and institutions for now.

While tokenized real estate has some similarities to REITs, its emphasis on specific properties and liquidity options makes it distinct.

However, concerns have been raised about the potential impact on affordability and neighborhood quality, as investors from all over may have access to properties in lower-income areas.

The tenant protections and long-term impact of decentralized governance models in tokenized real estate are also being scrutinized.

Despite the challenges, the tokenization of real estate is seen as a potential catalyst for evolution in the industry.

With $278 trillion in global real estate assets, the industry is ripe for innovation.

Experts predict that the full potential of tokenization may take 10-15 years to realize, with various aspects of home ownership, including deeds, becoming tokenized in the future.

The fractionization of homeownership may ultimately make it accessible to more people, but it also raises questions about the traditional benefits and long-term financial security associated with home ownership.

  • Key Takeaways

Bitcoin’s price volatility is expected to continue.

Experts predict this volatility to persist for several weeks as Bitcoin recovers from its recent all-time highs

Tokenized real estate has some similarities to REITs, but also offers distinct advantages.

Its emphasis on specific properties and liquidity options makes it unique while still offering investors exposure to the real estate market

The full potential of tokenized real estate may take time to realize.

Experts predict that it may take 10-15 years for the full potential of tokenization to be realized

latest articles

explore more