Real estate is a physical commodity market. You might be wondering how NFTs and crypto come into real estate. The idea lies in monetizing a commodity via digital assets for a digital world. It is easier to monetize investments in an unregulated market than in the real world. And this goes to show just how much cryptocurrencies have penetrated the commodity market.
Crypto and NFTs have wormed their way into the real estate market in two ways. Real-world uses and virtual land. Virtual land? Don’t worry, I’ll explain it soon enough. We’ll see why NFT real-estate marketplace development is necessary.
What are NFTs and their use Cases in Real- Estate?
NFTs are non-fungible crypto assets. Imagine an artwork like Van Gogh’s Starry Night. While the painting is worth millions of dollars, can it be used as paper currency? Can you use that painting to buy coffee or groceries? No, you cannot. Why is that? Because it has little exchange value. It is a priceless piece of art worth a lot of money but only to a collector. There is very little liquidity for art; I mean, it’s not everyone’s cup of tea. NFTs are the crypto equivalents of illiquid assets that have value, but the value depends.
Paper currency is fungible. It has immense liquidity because it changes hands very quickly. NFTs are, by definition, non-fungible, and they cannot exchange easily.
Like cryptocurrency use cases, NFTs have found their uses in nearly every industry. From supply chains to fashion, sports, and now real estate. But how are they used? There are a few ways.
- NFT Documentation
- Alternative Payment Option
- Virtual Land
- Fractional Ownership
- Real Estate Liquidity
Transparency and security are vital for NFTs in the real estate market. Because blockchains are immutable, and NFTs can store user data in their raw form, NFTs become permanent. Imagine a land sale, and the title transfer data is stored in an NFT. Now that NFT becomes proof of transfer that anyone can find. And this gives credence to NFT use in the documentation side of things.
Outside money, what are the other forms of payment? Gold, silver, and diamonds can all be considered different forms of payment. Soon enough, Bitcoin and Ethereum will become another form of payment. And so can NFTs. And there are NFTs out there sold for millions and millions of dollars. If two parties agree, I don’t see why NFTs cannot be an alternative payment to paper money.
Metaverse has spaces in the digital landscape sold to people as virtual real estate. And the ownership of these virtual lands is sold as NFTs. Decentraland, Sandbox, Enjin, and Axie Infinity are one of many examples of these.
Fractionalized NFTs allow you to divide the cost and ownership rights of tangible assets like real estate among several persons. Minting a property’s ownership as a fractional NFT might make it easier for people to get started in the real estate industry.
Real Estate Liquidity:
Real estate could be challenging to match the right buyer with the right property. Liquidity is a problem that could lower the value of a piece of real estate. However, because blockchain technology is borderless, it can expand market participation and help make the real estate market more accessible to buyers.
With time more uses for NFTs in the traditional and virtual real estate market will show up. And eventually, if mass adoption happens, NFTs will become a staple in both markets. So as business promotes, NFT real-estate marketplace development is for entrepreneurs looking for an emerging market.
NFT Real-Estate Marketplace Development
Governments of many countries are investing a significant amount of resources to ensure CBDCs take off. It’s their way to control the innovation of the crypto space. And there is a good and bad side to this move. The good side is that innovation in the last decade has gone unchecked, and we’re ahead in technological progress. And the other side of this is that traditional financial spaces have been hesitant to adopt NFTs and cryptocurrencies.
With crypto regulations imminent, it’s only a matter of time before NFTs in the traditional real estate market boom. We can expect it by the next bull market and macroeconomic stability. So, this is the opportunity for entrepreneurs to invest their time and resources in building a platform. NFT real-estate marketplace development will tap into untold revenue a year, maybe two from now.
Why Choose Coinsclone for NFT Real-Estate Marketplace Development?
If you’re an entrepreneur with an eye on the future, NFT is the market space you should concentrate on to be successful. However, even with the needed technical skills, navigating through evolving technology can be challenging. And that is what we can help you with as a software firm.
We are a reputable software company with extensive knowledge of blockchain-based technologies. Above all, we provide secure software solutions at cost-effective pricing. And we are the ideal way to outsource for the most gain on a limited budget. We are an NFT marketplace development company. We are Coinsclone.