The tokenization of assets as a safe haven (3/3)

1. Why do we differentiate investment from savings?

To conclude this group of posts, I would like to clarify the concept of investment or savings. Culturally, they are opposite terms, both in the concept of term (savings are in the medium-long term), in lucrative terms (savings have a low lucrative expectation) and in terms of risk (savings are something that maintains its value with completely zero risk).

Culturally, the term to save has been to store money or monetary units in a current account, with the possibility of immediate liquidity, that is, usable or transferable in just minutes. It is an attitude that stems from the fear of having to face any unforeseen event. But is it completely safe to have money in a bank account? Are you protected from risks such as inflation, currency depreciation, or simply from cyberattacks and criminal use?

This term may be a bold one, but creating value to generate savings is to passively lose it. Or in other words, to save is to invest inefficiently.

Returning to the traditional term savings, in Spain it was common to save on pension funds and real estate assets as a reference for low long-term risk. Therefore, based on the security and profitability of a real estate asset (chosen consistently), and using tokenization as a reliable representation of that property and its remuneration rights, we could have a more efficient saving/investment vehicle. And why more efficient? Because it allows it to be much more liquid than a traditional real estate asset, which makes it an investment both in the short and long term.

Why is liquidity increasing?

Very simple: since it represents the investment of the property in tokens and these remain included in a decentralized liquidity pool, the price of the token is conditioned not only by the value derived from the rental or sale rights, but also by the price or value that third parties give to it (that is, subject to supply and demand). This causes a constant and real flow of liquidity, verifiable and accessible to anyone in the world (after validation in Whitelist).

What properties can be tokenized?

Really anyone, but anyone that has value to a third party. This point is interesting because it causes investment using tokenization to deviate from the trend of speculation to focus on a lower but continuous return value over time.

On the other hand, it opens the door to tokenizing properties located anywhere, as long as they have representative value and your ownership can be reliably justified. And finally, anyone on the other side of the world could invest in a property located in Spain. Could you buy a property in another part of the world with the ease of a click, without being tokenized?

It is pure disruption, placing the small investor at the center of all this movement. It's a time for change.

Note: From Reental and Tutellus we always recommend training in Blockchain and finance as a complement to your investment culture.