The Saylor Narrative
I am sure by now you will have heard Michael Saylor refer to Bitcoin as the new “real estate” of the future. Michael is very strong in his view that Bitcoin is the highest form of property ownership the world has ever seen. When you begin to think about property and what it accomplishes for the owner, it becomes abundantly clear that digital assets are very much a form of property. The fact that lending out your Bitcoin earns you a yield is equally as powerful as a landlord lending out his house to a tenant for a monthly fee.
In fact, it is actually more powerful due to the fact that there is zero maintenance required on digital property. Network upgrades take place outside of the holder’s jurisdiction. Some may argue that transaction fees can begin to carry and reflect this effect. Perhaps but if you are not moving assets around it is not going to injure your pocket. Property investors usually hold onto a good property indefinitely, as it is a good income source, as well as an investment.
The Dual Role Of Property Investment
When investing, the role and purpose of property are to own an asset that increases in value over time, while simultaneously providing the owner an ongoing monthly income. As previously mentioned, BTC is actually capable of achieving a similar outcome. However, a thorough investigation will actually reveal that BTC outshines property, making it more attractive as an asset class.
Sure, there will always be the homeowners who actually purchase property to live in but one has to consider that typical property investors may begin diversifying into BTC and other digital assets.
A Transition In Property Investment
I would not be surprised if many players on Upland and other similarly styled property NFT games are actually conventional property investors. With shrinking margins in real estate, compounded by tenant issues, the metaverse may become increasingly more popular. Many people reading this may not necessarily agree but it all depends on where you are in the world. As mentioned earlier, property investment for living purposes still makes reasonable sense. However, as a business model, it ranks fairly low in terms of margins.
The world of digital assets and tokenization is just getting started. Take Upland, for instance, a guaranteed 17% is quite attractive. However, these platforms are still new and are busy building trust and reputation amongst investors. It is therefore quite unlikely that “property” sized investments will be attracted to these platforms just yet. There will however be a growing demand right alongside an ever-increasing capital allocation.
What is however clear is that investors will begin diversifying their investments into BTC and other NFT “property” typed investments. This may begin slowly but it will definitely be on the rise, especially as the investment-grade NFT and metaverse options begin to shine amongst the fading hype. One needs to try and discern early on which opportunities are going to succeed well into the future. This is where good old-fashioned research comes into the picture.
OVRLand is one such platform I am currently looking at. The market cap is only $61 million with a healthy daily volume of approximately 10% of that, which is quite significant. I do not currently hold any OVR but I will most likely begin building a position soon!