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*This paper is based on the investment hypothesis and does not involve any real research. 

The land dividend, which began in 1992, will not last forever and is now fully in a global liquidity dry-up phase. The passive restraint of private demand leads to the bottleneck of land factor market represented by traditional real estate. Especially in the real estate financial market problems highlighted, bank loans over-inclined to real estate, manufacturing, technology and small private enterprises loans rather difficult, exacerbated the self-contraction of the financial market.

At the same time, high house prices and high inventory will supply and demand mismatches continue to magnify the problem, in the original liquidity squeeze will further reduce the real value of assets. The paradox is that the book prices of real estate assets are on the rise. Both real estate companies and residents are borrowing heavily from banks. This pattern of two-way risk reversals keeps piling up debt, eventually, when asset income is not enough to pay interest on debt, there are only two consequences: continuing to borrow money to pay off old debt and sinking into Ponzi financing. Or the book value of an asset plummets.

Debt owners and stakeholders will never allow this to happen, and eventually land element monetization will reshape the credit of land ownership, starting the next 30 years of real estate transformation development of the high-growth model.

The sub-prime real estate crisis and not broken

Real estate finance can easily become a stress umbrella with no soft landing, deleveraging and debt digestion are internal demands that can not be created on their own. In other words, the solvent party will never be a creditor in the current model. Even if the debt were to be imposed, it would have to be passed on to devaluations and inflation, opening the Pandora's Box of full blown crises at any moment, japan 30 years ago was a prime example of this kind of industrial thunderstorm.

If households save less and take on huge debts, once the housing bubble bursts, ordinary people's spending power and desire to buy will plummet, and economic growth will stall, then Japan entered the "lost 20 years". Since the last century, the world more than 130 financial crises, more than 100 times and real estate-related. Before the subprime crisis in 2008, US mortgages exceeded 30 per cent of GDP that year. The bursting of the housing bubble has become the most likely Minsky moment.

While encouraging mergers and acquisitions by quality real estate companies will help ease the pace of the thunderstorm, healthy housing companies will always have limited funds, and such funding needs will not be able to make up for the huge debt gap, we can't consciously create the need to pay off our debts. Over a longer time frame, the housing crisis is ultimately a debt crisis, testing the credibility of the currency. Unlike 30 years ago, there was no cryptocurrency in Japan.

An angel wandering in the world's cloudy skies, will rally credit and consensus, to a new round of economic crisis to bring a different breakthrough possibilities.

Above the credit cliff of the debtor

If real estate is real estate only, it looks as if the crisis will be easily solved. But the economic system is not a fragmented entity, especially as the main force of fiscal revenue, more sensitive to the overall economic transmission. The key of credit reconstruction of real estate industry lies in the second injury of currency credit after debt restructuring, so the real estate has only one chance to save itself. This risk transmission is nothing short of high-wire walking.

Land heightens market concerns about local solvency. Credit stress can spread to production and trade, and policy tools can slow the spread of credit default risk, the monetary and fiscal instruments at our disposal are essentially instruments for mobilizing supply and demand, which will shrink if the average consumer in debt is unable to generate any further income growth, market confidence will fall further.

The real estate pulls a hair but affects the whole body, therefore the land essential factor in the current supply and demand condition uncontrollable possibility is bigger. How to rebuild credit? The first is to seek new endorsements of value for money and debt. The fragmentation of the value of the land element can not be reintegrated through the self-absorption of the debt, since neither the debtor nor the creditor has a long-term incentive to do so and runs counter to economic common sense.

Cryptocurrency provides a new way to revalue the land value and transfer the debt into the external reservoir. Once the real circulation line is opened, real estate will burst into vitality and opportunity again.

Land property right recursion in redistribution

The price of land is mainly determined by supply and demand, and the price reflects the degree of land scarcity. Land is the father of wealth, because any increase in wealth can not be separated from land. Land is the common property endowed by nature and owned by all mankind. As for the land within the territory of a country, it should be enjoyed by all the people in the territory. But at the same time the distribution of land wealth is often accompanied by a "zero-sum game", there must be a party to sacrifice more interests.

In essence, "equal land rights" is more fair distribution of land property rights. But the development of real estate industry leads to the part of land value-added income can not be actively controlled by ordinary people. As a result, society's overall wealth will grow more slowly. If the land value-added income is only in the hands of a few people, then the income distribution for the whole society will cause irreversible harm. The public ownership of land must ensure that the land value-added benefits to the majority of ordinary people, which for the next 30 years of new real estate growth laid the theoretical foundation. Only when the value-added income returns to the majority, the mainstream community can readily accept the simultaneous digestion and transfer of debt and claims.

From the traditional financial point of view, the land income may only include the income of land rent in the real environment. But the rise of blockchain technology changed all that. The land income is mapped on the blockchain, which has the property attribute of the virtual world. The meta-universe also needs urbanization, and a new round of "land finance" will burst into vitality in the redistribution of virtual land property rights.

The naturalization of the virtual land is not groundless, and the land income as an infrastructure financing channel of cryptocurrency is the best solution to the local debt. Virtual land sale should not be a castle in the air, but should be strictly linked with real assets, so that the virtual economy can truly reflect the real value of right distribution.

Monetization to follow the privatization process

What's the difference between a token and a dipiao? The two are the product of two eras, and are not synonymous with financial transparency, ownership clarity, liquidity infrastructure, and tradable scenarios. Privatizations, of course, are not really privatizations, but privatizations first to stimulate labour production, and then to privatizate the whole to redistribute debt and wealth, is the lowest cost and highest return of the real estate transformation path.

Of course, this round of opportunities is built first on the introduction of real blockchain technology. There is no complete blockchain, it is not complete token. Without thorough monetization, it is impossible to arouse public enthusiasm for the production of equitable ownership of land property. Without initiative, the public will not embrace debt acceptance, and will eventually move to another possibility.

*The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of SparkDAO. Every investment and trading move involves risk, you should conduct your own research when making a decision.