The primary store of wealth for most households is their homes. Savills, a British research firm, estimates that the total value of developed real estate on a global scale is over $200 trillion. This figure has been growing steadily, and it is expected to maintain this trajectory.
Many people are already making huge profits off the real estate markets, but most homeowners hardly realize any financial gain – in fact, most incur losses through high-cost mortgages.
One startup, however, has come up with an ingenious solution to most of the challenges facing the real estate market. Bloquid is set to transform the real estate industry into a liquid digital asset.
How Does Bloquid Work?
For many homeowners, taking out a mortgage is one of the easiest and fastest channels for getting financial aid in form of a loan. However, mortgages are expensive and come with many risks involved.
Bloquid acts just like a mortgage lender with one crucial exception – it leverages the power of blockchain technology and uses cryptocurrencies instead of fiat currency. It gives homeowners a chance to get a stable digital asset by mortgaging their property.
Homeowners looking to venture into the lucrative cryptocurrency market can now mortgage their homes in exchange for Mortgaging Units (MUs). Mortgaging Units are tokens with a difference since they are backed by mortgaging and real estate properties. To this end, they are quite secure – developers argue that they may even be more secure than fiat currencies since real estate (and other assets such as gold) have for long been used as a hedge against inflation and fluctuations in the global economy.
Features And Benefits Of Bloquid
Cryptocurrencies are changing the financial world as they overcome challenges that mostly affected borrowers and the average people. Some of the benefits of using Bloquid to take out mortgages as opposed to traditional fiat currencies are:
Banks and other financial institutions are extremely secretive and protective of their operations. To this end, most mortgage owners are usually in the dark about their mortgage statuses. This, however, is not the case with Bloquid as it runs on blockchain platforms which can be opened and reviewed at any time, hence keeping mortgage owners up to date on their financial standing.
Mortgages are highly lucrative for banks – in fact, high-cost mortgages were behind the global financial crisis of 2008. Bloquid is also seeking to make profits, but it does this through commissions instead of interests. To this end, all mortgages taken out using MUs are interest-free.
Liquidity And Quick Value Transfer
Bloquid will operate on a global scale and its developers plan to pool together all investors’ assets. By tokenizing the value of real estate, mortgages will be easily liquefiable and can be transferred from one person to another locally, nationally, and internationally.
Hedging Against Losses
The real estate market is prone to shocks and other impacts from the broader economy. However, MU token holders can now protect themselves from fluctuations and inflation as their assets will be pooled and will cover the global real estate industry.
Pre-ICO, ICO, And Other Milestones
Bloquid was incepted in 2017, and since then its developers have achieved several crucial milestones. For starters, it has already passed the proof-of-concept tests, meaning that it is a viable investment vehicle. Bloquid have also already held talks with private investors from all over the world. The next key milestones will be the launch of its pre-ICO and ICO sales, both of which will be announced in October 2018.