Opinion Can tokenized Real World Assets fund your upcoming vacation
Disclaimer: The opinions expressed in this article are the author’s own and do not reflect the views of the editorial team at crypto.news.
The ongoing cost-of-living crisis has persisted longer than anticipated, with global inflation nearing normal levels but individuals still facing unprecedented rising costs while their wages remain stagnant. In such challenging times, people are finding innovative ways to earn extra income.
One popular avenue for supplemental earnings has been through platforms like Airbnb, which allow individuals to rent out their homes or spare rooms. Airbnb, established in the aftermath of the 2008 financial crisis, has experienced tremendous growth, operating in over 100,000 cities worldwide and hosting millions of guests annually. However, this success has brought about regulatory challenges for many cities.
To address concerns such as the displacement of long-term rental housing and maintaining residential integrity, governments have implemented various regulations. Some cities, like Dallas, have restricted vacation properties in specific neighborhoods, while others, such as San Francisco and Seattle, have imposed limits on the number of properties a host can manage. Certain locales have imposed restrictions on the number of nights a property can be rented out annually, while cities like New York and Tokyo require hosts to live in the rental property.
Despite these regulatory hurdles, the flexibility offered by platforms like Airbnb continues to attract real estate owners looking to earn supplemental income without the commitment of long-term rental agreements. In 2022, hosts in the United States collectively earned $22 billion by hosting travelers in their homes.
As regulations on Airbnb tighten, investors may explore alternative investment opportunities. Tokenized real-world assets (RWAs) have emerged as a transformative force, garnering interest from traditional institutional players. Tokenizing real estate, in particular, has opened up new investment opportunities and changed the way people interact with digital assets.
FreeBnk, a fintech app founded by a group of entrepreneurs, aims to bridge web2 and web3 banking on a single platform. By enabling users to invest in fractional RWAs, FreeBnk makes crypto investment more accessible, allowing retail investors to diversify their portfolios with smaller capital commitments. Users can browse and invest in properties through the app, earning rental income while FreeBnk manages the properties and deposits the earnings directly into the user’s account.
This accessibility to real estate investing allows a broader range of investors to benefit from the long-term appreciation of tangible assets. RWAs create an inclusive market where economic prosperity is shared among many participants, fostering financial growth for all. With the real estate market expanding, 2024 is poised to be a breakthrough year for tokenization of real-world assets.
