Tokenization of real estate is gaining popularity due to its transparency and accessibility. Bart de Bruijn, co-founder of EstateX, shares his views on this trend.
What is Tokenized Real Estate?
Tokenized real estate is the process of converting physical assets, such as buildings or land, into digital forms and placing them on a blockchain. This allows retail investors to purchase shares in real properties and participate in rental income generation.
Comparison of Tokenized Real Estate and REITs
Bart de Bruijn emphasizes that tokenized real estate offers investors a higher level of control and transparency compared to traditional REITs. 'Investors know exactly which asset they are investing in and can track it,' he states. This will revolutionize the perception of passive real estate investments.
Risks and Advantages of Tokenized Investing
Like any other investment, tokenized real estate carries risks. The primary risks include market fluctuations and the adoption of new technologies. 'Despite this, we are genuinely committed to educating our users,' adds De Bruijn.
Tokenization of real estate opens new horizons for investors, offering them more transparency and control. Considering current trends, it may become the preferred method of investment in the future.
