Earlier in the year I laid out my viewpoint regarding the long term trend in real estate. In an article titled The Layout For The Globalization Of Real Estate, I spelled out the three phases that I see regarding this transition.
While many claim that we are entering a period of de-globalization, that is not exactly accurate. Certainly, when we look at it through the lens of globalization over the last half century, we are seeing a reversal.
Due to factors such as geopolitics and technology, we will ultimately see more products (including food) make closer to where they are consumed. The days of making something in a factory and shipping it half way across the world is going to diminish over the next decade.
That said, it does not mean globalization is dead. In fact, there are three other areas where it is skyrocketing.
Financial - Wall Street has products that allow investors to invest anywhere in the world. This is only going to accelerate especially if cryptocurrency takes off.
Digital - each time we log onto the Internet, we are in a global arena. The next decade will see a continuation of the trend whereby this medium becomes a larger part of our lives.
Real Estate - spelled out in the article that is linked above.
Digital Nomads
Throughout this year, I have seen the increase in the concept of "digital nomads". This is leading me to the conclusion that what I espoused back in the early part of the year is only progressing forward.
This makes sense since cryptocurrency is expanding its wings. While the industry is mired in a bear market, the reality is that development keeps progressing along. This is going to open up enormous opportunities for people once we enter the next stage of evolution.
It is often difficult to see where things are going in the early days. However, with some effort, we can get some idea about the general trends.
Digital nomads are going to radically increase in number simply because technology will allow it. There is still debate about the idea of remote work. Even this concept, has become more accepted since the beginning of the year. By the middle of the decade, it will be commonplace for many knowledge workers.
This means that where one is geographically is going to be less important. Here again, the door opens for people to join the digital nomad realm.
Decentralized Finance (DeFi) Taking Over
Can you feel it brewing?
Decentralized Finance (DeFi) is going to ensure that the pool of digital nomads is plentiful. Again, this is tough to see when the bear market is raging. However, look beyond the prices in the markets and focus upon what is taking place.
Since we are seeing a clearing out of garbage projects, development that is taking place right now is building the platforms we are going to be using when the bull market returns. This is how it goes.
DeFi is going to be integrated into everything. At the moment, we are still building the infrastructure that will lead to even more applications.
Platforms are going to be tokenized. This will lead to people being incentivized in tokens for all kinds of activities. Once people have something of value in their wallet, they are then able to head to an exchange and trade for what they want.
The key is going to be the fact that people will have resources.
Of course, this means taking those rewards and turning it into some kind of ROI. This is what is going to provide people with the incomes they require.
Couple that with the ability to migrate away from the high cost areas and we see an entirely new outlook for many people.
Ultimately, governments are going to have to start competing for citizens. This will be similar to how local municipalities fall over themselves to get manufacturing plants located in their area. The incentives they provide are going to have to be directed at individuals as opposed to businesses.
When people have options, which the digital nomad class will, they are not going to stand for tynranny.
While it is not too obvious now, this is going to arise rather quickly in my view. The rest of this decade will be the foundation for this transformation.
Digital nomads will totally upend the real estate market. In fact, they are going to really do a number on some governments.
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