Metaverse virtual estate has a good future?
Some people may already choose their land, their property or even their virtual estate in metaverse.
A moment ago, Citigroup release a research result,
Citi is an investment banking giant Citigroup
They just done the research for how property technology can affect the housing market
They released the report in title “Home of the Future: PropTech — Towards a Frictionless Housing Market?”
Citi said crypto, blockchain and property in the metaverse have the potential to transform the traditional real estate market.
While crypto-backed mortgages can streamline the process of purchasing a home,
Some people have seen investments in metaverse property grow in the last two years.
Citi also reported that property loans linked to crypto assets give more advantages
It allows investors to utilize their investment gains
Without incurring capital gains taxes, but commented on the potential for risk in a volatile market.
While many standard loans linked to fiat have regulatory procedures in place to assess the ability of a borrower to repay,
Crypto holders may forced to pay significantly more should the price of tokens fall during a bear market.
The report also explains;
“If the value of the cryptocurrency declines, the borrower may be subject to margin calls and ultimately the cryptocurrency may be liquidated if the collateral value falls below a certain threshold, such as 35% of the property value,”
“Introducing cryptocurrency exposure into the credit profile arguably increases the overall risk of the loan.”
- Metaverse news: KPMG Joins Metaverse With $30M Investment