In today's edition of YIYL, (You Invest, You Lose) we take a look at an idea trying to take hold and rebrand the NFT space as something that can be applied to real-world applications and drive value.
It's safe to say the art and collectible NFT market has come and gone, there are still some suckers lingering around creating easily to reproduce jpegs hoping someone will buy it and just wasting cloud space as NFT platforms try to wash trade and give the impression of NFT demand.
I've already gone through why art and collectible NFTs have zero value and a simple search on this blog should give you the answers you seek, today I have an even more brain-dead idea to fry up and serve to you.
What are real estate NFTs?
No this is not you buying a home or plot of land in the metaverse while you drink soylent and eat your protein bug burgers, the real estate NFT I am focusing on is the utilities we use every day to live in.
When you own a piece of real estate you have a title deed to the property that is enforced by the government. Additionally if you're renting out that property you may have a contractual obligation with a third party to pay you for access to the home or apartment.
This is all done with paper contracts and yes there are public databases that municipalities hold because you got to pay taxes and utilities too.
The idea with real estate NFTs is that you will have a token in your wallet stating that you own the property. You could then sell the property by selling the NFT, borrow against the property by locking the NFT in a loan protocol or have someone sign a smart contract to rent the NFT from you and you get payments to your wallet while they hold the NFT and rights to use the property.
Now I don't know why anyone would want to use this complicated method of value transfer with no real enforcement rights, over simple paper contracts, but okay lets humour the retarded shitcoiners and go through the fails.
Housing is subject to centralised forces
When you have an NFT what do you plan to do if weather damages your home, if a thief breaks into your home, if the government siezes your land? Are you going to tell them no I have an NFT you have no power here? Fuck no you're going to get thrown on your arse so what is binding the NFT to any claim? The social contract with the government a centralised entity.
Who is going to pay out insurance in case of theft or an act of god? An insurance company a centralised entity, so wtf is the point of an NFT in a system that requires trust to function?
Who is enforcing the contract
So you have an NFT that says you have the rights to the property and you rent out that NFT to another person who pays you. They can then use the NFT to access the home or just as a paper claim doesn't really matter.
What happens when the tenant stops paying? How does the NFT make any difference? Can it lock them out of the home? They could simply disable any automation.
Traditional landlords already have a lot of issues with managing tenants and NFTs aren't going to do much to change that. An NFT cannot do fucakll to enforce rules in the real world, that is only enforced by rule of law and centralised threat of violence from your government.
Who is making sure NFTs aren't double claimed
So you have an NFT tied to a home, how do you prove that it's tied to the home? Where does the orcale come from that checks the home is actually there and there aren't secondary claims on the home? Why don't I sell the home for an NFT to one moron and sell it as a paper contract to another person?
How do you stop double spend? The truth is you can't! You need a central body to manage the sale and rental of a property and NFTs just get in the way of that.
Who is appraising the home
If you've ever had the price of the home valued you'll know that it's not a set science, some moron pulls public records of previous sales in the area and then thumb sucks a price out their arsehole making sure to factor in a possible commission. On any given day your house could be worth whatever, doesn't fucking matter because you're not going to get that price.
So how the fuck are you going to use that to go out and get a loan? You would NEED a credible CENTRALISED party to stick their neck out for you and vouch for the condition and value of the home.
Seriously why do I even have to explain this it's so dumb.
Why have an NFT if you have all this centralisation that is NEEDED
So for those of you that think tokenised real estate is going to be a thing and you can own fractions of a property or you're going to hold the rights to a whole property through an NFT how do you solve this clearing issue?
I honestly think that shitcoiners either have mental issues or they simply have been living in a bubble and don't realize how the world works, sometimes I am shocked at the garbage that comes out in this space without a second thought.
Im all for debates but fuck me speak some sense for us to debate.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
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