Since the development of blockchain technology by the pseudonymous Satoshi Nakamoto in 2008, cryptocurrencies and other token-based economies have proliferated at incredible speed.
These new platforms of wealth generation have created unforeseen and revolutionary opportunities for the redistribution of wealth and assets, but are also rightfully seen as the most volatile and risky of any asset class in human history (save, perhaps, non-utilisable/speculative ‘bubble’ assets such as tulips).
While these fluctuations in value are expected to settle over time, many holders of digital wealth are rightfully seeking to diversify their holdings into other sectors.
One of the most attractive asset classes for these holders is property.
As a finite resource, property conforms with many types of cryptocurrency in the sense that it is a somewhat deflationary asset – while there may be market corrections, and new and more efficient structures may increase the overall potential of a given block of land, no new land can be created or brought onto the market.
While it is still subject to market cycles and induced volatility, on the whole, property represents a stable and attractive platform into which crypto holders may diversify and therefore reduce their risk profiles.
As with any multi-sided marketplace, a balance of buyers and sellers must be achieved in order to achieve both growth and stability.
There are currently a number of brokers and simple marketplaces which offer to facilitate real estate transactions using cryptocurrencies (primarily BTC) - however, these have not achieved any real degree of mainstream acceptance or visibility, owing to a failure to offer significant levels of stock, as well as a lack of trust (both perceived and real) and understanding of the mechanisms, regulations and indeed advantages such a marketplace may offer its users.
In short, the vital missing factors for these marketplaces have been a critical mass of both buyers and vendors to achieve self-sustainability and organic growth, and a connective framework to provide a seamless transactional experience for all parties, from the introductory and onboarding phases through to settlement and ownership transfer.
However, B4Real’s extensive industry connections provide a level of adoption by vendors, agents, developers and supporting service providers (legal, accounting etc) which is heretofore unseen in this marketplace. Alliances with blue-chip trad-fi lending providers solve questions of fiat on- and off-ramping while removing barriers for both first-time purchasers and those looking to significantly leverage their digital collateral.
Similarly, the provision of DCE services, PEXA-registered escrow wallets and services, and tailored legal handbooks will allow agents and developers to operate in complete security, in turn being able to offer that trust to sellers who may be cautious about utilising the nascent crypto market.
Lastly, the proliferation of a newly crypto-wealthy class of investors and holders during 2020 and 2021 creates a highly motivated class of buyers, particularly in light of the recent bear trends of 2022.
These factors combined provide a strongly advantageous position from which to launch the B4Real platform.
As the necessary components of such a platform already exist, no major technological breakthroughs are required to achieve the requisite level of market penetration.
The development of various forms of distributed ledger technology continues apace, as does the implementation of Web 3.0 standards.
Instead, we seek to focus on providing the frameworks to bridge this evolving form of emergent finance with traditional legal, commercial, and financial structures, providing legitimacy, acceptance, and direction to the crypto and blockchain sectors, while imbuing legacy platforms and operators with a way to access new paradigms and rejuvenate their outlooks.