Could tokenized RWAs help cover your next vacation? | Opinion

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As a researcher with a personal experience of observing the impact of economic instability on individuals’ livelihoods, I am deeply concerned about the prolonged cost-of-living crisis that continues to plague people worldwide. Despite global inflation returning to typical levels, many individuals are still struggling with rising costs that have not been seen in decades while wages remain stagnant.

As an analyst, I’ve observed that the cost-of-living crisis has persisted longer than anticipated, despite global inflation returning to more normal levels. However, this hasn’t alleviated the burden of escalating expenses for many individuals, which have increased significantly in recent decades. Wages, unfortunately, haven’t kept pace. In response to these trying circumstances, people are getting resourceful and exploring alternative income streams.

Airbnb has given people an opportunity to earn additional income for quite some time now. By sharing their homes or extra spaces, they provide an alternative source of revenue. The company’s inception during the aftermath of the 2008 financial crisis undoubtedly boosted its success.

Airbnb has experienced explosive growth since its beginning, now operating in more than 100,000 cities globally and welcoming countless guests each year. Simultaneously, numerous urban areas grapple with the task of managing the short-term rental market effectively.

To preserve long-term rental properties and protect residential areas from being overtaken by the tourism industry, governments have explored various regulatory solutions.

In certain residential areas of Dallas, there are limitations on the number of vacation properties that can be owned. Conversely, cities such as San Francisco and Seattle have set restrictions on the number of properties a host is allowed to manage. Some locations have imposed an annual cap on the number of nights a property can be rented out, while others, including New York and Tokyo, mandate that hosts must reside in the rental property.

As a researcher studying the real estate market, I’ve discovered that despite regulatory hurdles, the allure of platforms such as Airbnb for property owners lies in their flexibility. Financially speaking, hosting on these platforms presents an opportunity to generate additional income without being tied down by long-term rental contracts. In fact, US hosts raked in a collective $22 billion in 2022 by accommodating travelers in their homes.

If regulatory requirements unexpectedly interfere with our plans, we might miss out on this potential investment.

From a researcher’s perspective, I have observed that Airbnb is encountering increasingly stringent regulations, leading investors to consider alternative investment avenues. One promising option is tokenized real-world assets (RWAs), an innovative concept that has piqued the interest of even traditional institutional investors. Specifically, tokenizing real estate presents a fresh investment landscape and alters the way people view and engage with digital assets.

FreeBnk is a fintech platform established by entrepreneurs with the goal of merging web2 and web3 banking. One aspect of their mission is making cryptocurrency investment more inclusive for all. They accomplish this by providing users the opportunity to invest in fractional Real Estate Warranty Deeds (RWAs), allowing retail investors to broaden their horizons in real estate investing with smaller financial obligations, and eliminating the traditional hurdles that hinder entry into this market.

Instead of spending excessively on a new home appliance, FreeBnk enables users to save that money and explore investment opportunities in real estate. The platform functions similarly to Airbnb; however, instead of reserving a holiday accommodation, users can evaluate potential investment properties based on their financial goals. Subsequently, they can invest in the property’s fractional ownership. Lastly, users will receive rental income, with FreeBnk overseeing property management tasks, including rent collection and direct deposit into the user’s account.

Expanding access to real estate investments enables a fresh crop of investors to broaden their financial holdings. As the real estate sector grows, it’s essential that individuals from all walks of life reap the benefits of long-term appreciation and the intrinsic value of tangible assets. Realized Wholesale Assets (RWAs) offer an avenue for cultivating a more diverse and inclusive marketplace. Through this approach, financial progress is fueled by numerous contributors, as opposed to being confined to a select group.

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2024-06-01 12:28