How NFTs Could Change Timeshares: Virtual Money & The New Vacation System
If the acronym NFT makes you scratch your head, then you are not alone (It has nothing to do with the NFL, or any other sports league). Plus if you throw in ‘timeshares’, it may feel as if you are walking straight into scam city!
In fact, to read about an unknown acronym in the same sentence as timeshare it may sound like a colossal area of trickery and confusion, but before throwing the whole confusing notion out the window take some time to understand what the nature of an NFT is, and how it may change the timeshare market.
What Is An NFT?
An NFT stands for Non-Fungible Token, it abides on the spectrum of the cryptocurrency, but is different, because unlike other bitcoin type currency, it represents something that is ‘real’.
When we say real, what we really mean is that NFT represents the value of digital artwork, so in a way it is a currency that represents not traditional art work that can be tangibly collected, but works of art that are created digitally. Does this make sense?
If you find yourself particularly attracted to a MEME, or other piece of digital ‘artwork’ it can now be purchased using the currency of NFT.
So, how might all of this change the timeshare market?
The Pandemic And The Timeshare Crisis
There is nothing like the whole world-wide lock down to put vacation destinations in peril. In fact many timeshare buildings have been entirely deserted, and left in ruins, if they were not associated with a large entity such as Wyndham, or Marriott.
What if it were possible to capitalize on the desperation of the vacation industry and create a timeshare that centered around the currency of the emerging NFT? Using digital asset purchases to buy, trade, and invest in timeshares?
This idea may not be just for the future, but rather we are currently witnessing the first community owned resort bought and run entirely on the NFT currency. During an interview with Forbes magazine, the creator of this first time NFT bought and operated timeshare, this is how the questioning went down:
“When asked why he chose to do this project during the COVID-19 epidemic, Wong told Cointelegraph China:
‘Danger and opportunity coexist. We see the opportunity for timesharing. Because when there is no epidemic, developers will not be willing to discuss this project with us. Now when the epidemic breaks out, they will be willing to discuss with us, or even deal at a low price. In the future, we will live with the epidemic, and we will get used to it.’” (2)
When the future of money, health, travel, and well everything is changing so quickly, it can be expected that the world of timesharing will change also.
The Future Of Money Is Changing: Does This Mean That The Timeshare Market Will Change Also?
For many, the world of cryptocurrency, bitcoin, and other digital currencies not based upon a national currency still feels confusing, and perhaps like a down right scam. The reality is that we are living in a rapidly changing world, and that includes money.
How, why, and where we place value seems to be up for grabs now more than ever. So, there was a time when investing as an art collector was a sound financial move, investing in real estate likewise, but whether we like it or not, it seems that all of this is changing rapidly.
Now, yes you can ‘invest’ in digital ‘artwork’, and this action seems to hold real value, so what about taking NFTs to the next level and changing the timeshare game.
What would it be like if timeshares were no longer a colossal financial loss, but as your NFTs gained in value, so too did your timeshare, and you were actually able to earn interest on your vacation?
According to Lab Groups here are the primary advantages to merging the industry of NFTs and Timeshares:
- “Staying right — An RTS-NFT will each represent a specific day in the calendar and the corresponding staying right (on that day) on the best available room basis with a penalty clause to compensate for unavailability for whatever reasons.
- Trading right — NFTs would be tradeabe on marketplaces based on the Binance Smart Chain and Ethereum.
- Swapping right — RTS-NFT holders would be able to swap the days, the incentive point and the location (of other resorts) later among themselves, on the marketplace or within the Labs ecosystem.
- Voting right — Built-in voting content (more than 80%) for major operational decisions (if applicable), such as selling off the resort at a high value.” (2)
For those well versed in the colloquialism of the cryptocurrency market, all of that probably makes sense. For the rest of us, it may take some time to catch up to the new money market and the new timeshare opportunities.
A Bold New Future With NFTs And Timeshares
The timeshare market is not going to change overnight, however be on the lookout for how the new money system is beginning to impact the timeshare industry.
Perhaps, it is possible that timeshares will experience a rebirth of sorts with NFTs, allowing individuals and families to enjoy vacations and a financial profit at the same time? Only time will tell the extent the NFT will ultimately affect the timeshare industry, but keep your eyes, ears, and mind open to a bold new timeshare future.