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The Tokenization of Real Estate: A False Solution to Wealth Inequality

• Tokenizing assets like real estate won’t solve the wealth inequality gap; it will only make it worse.
• Real estate is being used as a store of value, which is not its intended use.
• Bitcoin can be used as an actual store of value, draining the monetary premium from real estate.

Wealth Inequality and Asset Tokenization

The demand for tokenizing assets like real estate is a symptom of the problems that bad money perpetuates, leading to an increase in wealth inequality. Instead of tokenizing assets, we should reduce them to their utility value as dwellings or places of business to solve this growing problem.

Potential Side Effects

Blockworks highlighted asset tokenization as a potential solution for individuals who are unable to purchase a home. However, houses are expensive because they are being used as stores of value due to decades of fiscal and monetary alchemy that has decimated purchasing power. This causes investors to buy houses in anticipation of prices going up, further driving prices out of reach for the average citizen. Additionally, relying on blockchain technology alone does not provide meaningful links to the real world, requiring legacy law enforcement and judicial systems to uphold property rights and prevent rug pulls from token holders.

Bitcoin’s Solution

Rather than mindlessly tokenizing assets, Bitcoin seeks to fix underlying monetary issues by serving as an actual store of value thus draining the monetary premium that real estate has accrued over past decades due to broken monetary systems. Under a bitcoin standard, housing will ultimately collapse back down its utility value instead of being used as a store of wealth by proxy.


Tokenizing assets like real estate won’t solve wealth inequality – it will only make matters worse by driving up prices even further beyond reach for most people. The solution lies within Bitcoin’s ability to act as an actual store of value and drain the monetary premiums associated with real estate without relying solely upon blockchain technology or legacy law enforcement systems for contract enforcement.


If we want to solve growing wealth inequality gaps, we must reduce certain assets such as real estate down to their utility values rather than using them as stores of value by proxy through asset tokenization or any other means – Bitcoin offers us a way out through its ability act as an actual store of value while avoiding reliance upon blockchain technology or legacy law enforcement systems alone for contract enforcement purposes