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Myself and a few others woulc like to use cryptocurrency to enable fractional ownership of property where anyone in the world can buy and sell 'shares' or just

Myself and a few others woulc like to use cryptocurrency to enable fractional ownership of property where anyone in the world can buy and sell 'shares' or just own them as an investment. This is happening with art too.

sokoloff 7y ago
For residential, there’s some adverse incentives at play. If I borrow from someone and give them equity, my incentive to improve (or even maintain) the property is dramatically curtailed. Conversely, if we try to alleviate that, maybe a lender ends up on the hook for a call for their 10% of my $500K addition to maintain their pro-rata. That ends up subsidizing remodels which tend to pay back less than $1 for $1.
acjohnson55 7y ago
Why does this require cryptocurrency?
m-i-l 7y ago
Art is very different from physical property, given it tends not to have any intrinsic value, generate income etc. Fractional ownership of residential property is already possible in the UK, without cryptocurrency: - Set up a Declaration of Trust which defines the fraction of ownership of each of the Tenants in Common, along with other details such as what to do if one wants to sell. This is typically used by owner-occupiers. - Purchase via a Public Limited Company, and issue shares in that company. This is typically used by investors. - There are also fractional property ownership schemes run by housing associations. There was even a startup attempting to streamline this process, without cryptocurrency, although it has folded already[0]. Adding cryptocurrency is only going to add new risks such as key management, exchange failure, etc. and doesn't provide any clear benefit(s) to those who don't already have a vested interest in the chosen cryptocurrency platform. Unless the idea is to use cryptocurrency to bypass the existing legal system, but that is going to expose you to the legal (not to mention moral) ramifications of it being used for tax evasion, money laundering, theft, etc. [0] https://news.ycombinator.com/item?id=19319363 https://news.ycombinator.com/item?id=19319363

sokoloff 7y ago

For residential, there’s some adverse incentives at play. If I borrow from someone and give them equity, my incentive to improve (or even maintain) the property is dramatically curtailed. Conversely, if we try to alleviate that, maybe a lender ends up on the hook for a call for their 10% of my $500K addition to maintain their pro-rata. That ends up subsidizing remodels which tend to pay back less than $1 for $1.

acjohnson55 7y ago

Why does this require cryptocurrency?

m-i-l 7y ago

Art is very different from physical property, given it tends not to have any intrinsic value, generate income etc. Fractional ownership of residential property is already possible in the UK, without cryptocurrency: - Set up a Declaration of Trust which defines the fraction of ownership of each of the Tenants in Common, along with other details such as what to do if one wants to sell. This is typically used by owner-occupiers. - Purchase via a Public Limited Company, and issue shares in that company. This is typically used by investors. - There are also fractional property ownership schemes run by housing associations. There was even a startup attempting to streamline this process, without cryptocurrency, although it has folded already[0]. Adding cryptocurrency is only going to add new risks such as key management, exchange failure, etc. and doesn't provide any clear benefit(s) to those who don't already have a vested interest in the chosen cryptocurrency platform. Unless the idea is to use cryptocurrency to bypass the existing legal system, but that is going to expose you to the legal (not to mention moral) ramifications of it being used for tax evasion, money laundering, theft, etc. [0] https://news.ycombinator.com/item?id=19319363 https://news.ycombinator.com/item?id=19319363