Sounds interesting but it would be a pain when the building burns down due to a natural disaster. I wonder who's paying for the repairs or does it go to zero?
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Sounds interesting but it would be a pain when the building burns down due to a natural disaster. I wonder who's paying for the repairs or does it go to zero?
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I think everything has a risk factor when comes to financial terms,
But with a good feasibility sturdy, everything should be in place
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Yea but the problem is that a bunch of people pooled in their money for real estate. So everyone expects the value to go up but in a case where a natural disaster happens, who is going to be responsible? They may own the property and the right to build on the property but now it will require money to fix it.
Given that the ownership could be 1,000 users, how would they raise the money to rebuild the property and how to compensate the token users in the future are questions to answer. In a general case, you would have one home owner so it is easy but now you need the consensus of like 1,000 people.
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I understand you, that was why I spoke about feasibility study.
Everything in this world needs planning ahead of time
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But it would be very unlucky if all or most of your tokenized properties could catch fire or go through natural disasters lol
The idea is very interesting and it is true, we must think about the risks but in this case it is almost impossible to imagine that all your investments will happen with these problems.
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I would say the asset has to be secured through insurance in that instance.
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So would you say insurance companies are here to stay? They kind of just leech off everyone's hard work and try to avoid paying out as much as possible.
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It will be revamped completely. Tesla looking at bringing their own insurance out is the first leak in the system.
With the advancement of data, it is hard to envision the present system remaining in place. We can establish one with data and algorithms that operate much better.
Also, imagine the changes that will be taking place in the automotive (self driving) and healthcare (personal monitoring) industries.
These are two big areas for insurance.
And who knows, we might see decentralized models be constructed.
Why couldnt we establish and insurance pool on DeFi that pertains to certain assets that we are protecting.
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Seems complicated. I think I need to see some actual details before I believe it. Honestly I think lower costs are better but if accidents start piling up then costs need to stabilize somewhere.
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DeFi can definitely work in that field too I guess . Don't you think ?
Also I hate insure companies to the core lol.
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I am not so sure. I think the idea of the pool's value dropping every time an accident occurs doesn't seem appealing to me.
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I think NFT as an alternative to physical documents . If 10 members own a house and have the documentation for it and if it burns down what would happen ? The same must happen to NFT holders too.
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