Tokenization and Where It Is Going
In the near future, you will be able to invest in a part of a rental house, or a fraction of a gram of a large bar of gold in some vault. You will be able to buy a stock, online, without any broker… or just a piece of that stock.
You will no longer be limited to stuff that can be physically in your possession. You will no longer be limited by middlemen. You will no longer be limited by minimums.
The ramifications are immense.
It is everything the banksters wanted, but the banks will get nothing, and probably close. Their middleman'esk being, their power from being able to gate-keep, will be gone.
Everyone will be able to invest… but everyone could have purchased bitcoin, and few have done so. Will they do so when investing in real estate is now on the blockchain?
Tokenization - the wet dream of banksters
REITs are something of very recent emergence. Real estate always existed in that area where you had to own it personally, locally. Someone had to be their to rent it and collect the rent. Someone had to oversee its maintenance. Someone had to pay the property taxes. However, now we have management companies that are cheap enough to use on every rental. And with that, we can put the house into a corporation and just sit back and collect dividends.
What is better than having stock in company that is easily insurable, and has almost always gone up in value?
Everyone should own stock in Berkshire Hathaway! Except it is the rare person who has $750,000 lying around to invest. Warren Buffet was able to get many deals thanks to his contacts and contracts. Warren also didn't want to have little investors making his corporation tradable like baseball cards, so hasn't split the stock.
What happens when it is tokenized? People buying $2 of Berkshire Hathaway! Will Greg Able (new CEO) be able to stop this? Well, not if the laws stay the same.
What about Cede and Company that OWNS all the stock traded on the stock exchange? How will they react to all of this tokenization? Well, that is a good question:
Cede and Company and Tokenization
There is three ways this is going to work out:
- Stocks will only be traded on the stock market, Cede says.
- The banksters try to steal all the stock. (what they are planning now) And it all gets tokenized
- All the stocks get tokenized, as stocks are pulled from the market, and put onto the blockchain
If you are unaware, Cede and Company owns all the stocks while they are being traded. Someone has to own them. They cannot be ownerless. And so, to facilitate trading on a stock exchange, Cede and Company holds them all. (Else, every stock transaction has to have a buyer and a seller, and the transaction would have to be filed by the corporation. No high speed trading. No medium speed trading. It might takes weeks to buy and then sell a stock.)
Now, add to this some fraud. OK, a LOT of fraud. Many stocks are oversold. There are ghost shares because each transaction isn't verified, and happens so fast that a stock held for a short, could also be sold while it is supposed to be held. So, now there are two stocks, where only one should exist. This usually clears itself out, but it is not always. This has gone on for a long time, and so there are a LOT of ghost shares. And if the music ever stops, even for a second, it will be found that several people claim they own the same stock.
And they will probably say, the oldest "owner" gets it, which is the banksters or Cede and Company.
Suddenly, a lot of people get VERY angry. The stock market is not able to function anymore because no one trusts it. And so, they will work out something more equitable. AND, they will tokenize all the stocks.
Which means, all the stocks will be on the blockchain, and the stock market will become meaningless. (or some law says they have to stand in the middle of all transactions) Meaning, everyone knows they are meaningless, but still stand in the way.
Tokenization of gold
This is the easiest, of this type, to explain.
Bitcoin is said to be worthless, because it has no backing. What happens if there is a pile of gold, that is tokenized on a blockchain? Well, basically it becomes a gold backed crypto.
Now, lets put lots of gold online in this manner. We now have one of the most valuable blockchains. Rivaling bitcoin. (maybe becoming bitcoin).
But as it has always been, storing gold is hard. People want it, people steal it. It is lent, lent against, re-lent, until no one knows who the gold belongs to, even if it is still there.
And then, someone will speak out, "Why are we holding all this gold in an underground vault? Bitcoin is already digital scarcity, why did we bother to dig up all this gold in the first place?" And as the old gold-bugs die off, it will become apparent to most people that gold, the storing of it, the transporting of it, the mining of it, was and is, a cost that we shouldn't bother with.
Soooo, tokenizing gold seems like a great thing from our currently monetary/bank-centric world view. But after a while, it will seem like a stupid waste of money and time. What does gold give to a blockchain that digital scarcity doesn't already give us? And we all know that actually trading the crypto in to get gold is way to costly. Not at all convenient. And it adds an exploit into the system.
It would be better to put all the gold into a great big, block, encased in acrylic. Then we know it hasn't gone anywhere. But, as soon as this is done, the actual meaning of the gold becomes useless.
It is just a matter of time before gold is forgotten, a meaningless, old-fashioned, burden of "why bother".
The real thing about tokenization is that it will become useless soooooo fast.
Imagine if you wanted a house. So, you buy 1% a week. So, you have 100%, and you want to live in it. But, it doesn't really exist. You own 1% of a 100 houses. And, someone has purchased 1% of every house, just to block you from ever having 100%. (The banksters would do this, just because they think it would keep them in control)
Even worse, in hard hit cities, the house values are going to zero. You now own a percentage of zero. And you can't sell your percentage, but you are locked into the fees. What a fiasco. And as people kick the bucket, or flee the cities, the tokenization becomes meaningless. And people will feel, why did we bother?
Everything that we would tokenize today will become meaningless. Like the "scarcity" (there is a lot of it) of gold vs the SCARCITY (mathematically proven) of bitcoin.
And everything real, like the property a small community lives on, will be quite apparent in who "owns" it.
Our tokenization efforts, which seem so straight forward today, will seem like a big waste of time in the future.