Why buy into Peer to Peer Platforms
Disclaimer: I am not a financial analyst or an economist. This is not financial advice. This is simply the results of my research using referenced open access information.
With the expected launch of the Real Property Token platform in 2018 there is a lot of excitement within the RPT community and many predictions of RPT price and trade volume. While any project has a chance of missing its goals, most of us have high expectations that the RPT platform can become a leading platform for property projects, while offering the advantages that come with purchasing with a cryptocurrency. Below I present a number of reasons why I am expectant and positive about the medium to long term potential of RPT, based on demographic and economic trends.
Part 1: Demographic and economic trends
1) While the population of the world is expected to grow by roughly 300 million people by 2022, the number of people moving into the middle class is expected to be close to one billion. When people move into the middle class (from the lower classes) they spend more money of improving their lifestyle, and they have more money to invest. They look for opportunities and real estate is the main area in which they have some knowledge and feel comfortable placing their savings. This is good news for the growth of all markets as more people will have more money to trade with. Note that ~88% of this transition to the middle class is expected to be from Asia making this region a great source of potential growth for RPT and other platforms.
2) The total number of internet users is expected to grow by ~700 million people to 4.6 billion in total by 2021 (here and here). As more people have access to the internet there are more potential platform users and therefore,
more potential projects and participants. Big potential growth markets are in Asia and Africa, which currently only have ~47% and ~31% of their population connected to the internet (compared with 80–90% in Europe and North America). Mobile and tablet devices are most likely to be the used to access the internet, so all platforms should carefully consider the usability of their mobile sites and apps.
3) In 2022, global GDP is expected to exceed 103,000 billion USD, an increase of over 20,000 billion or approx. 25%. GDP (Gross Domestic Product) is a measure of the value of all goods and services produced annually. With more money being spent to buy products and services worldwide, project providers
will have the opportunity to grow and flourish. Although some of this growth will be offset by global inflation, the world is positioned for a decade of
Part 2: E-Commerce trends
4) Growth in the “sharing” economy is ready to explode, growing from $14 billion USD in 2014 to a predicted $335 billion by 2025, a ~2400% increase.
Peer to peer sharing services such as Uber, Lyft, and Air BnB allow users to provide services directly to potential clients, cutting out many middle-men. In the future more people will be selling, renting, sharing more goods and services directly from one to the other, bypassing traditional methods. RPT is one such peer to peer sharing platform. In the US alone, 86.5 million adults are expected to access the “sharing economy” in 2021, up from 56.5 million currently. RPT is strategically well positioned to take advantage of this growth in the sharing economy, as users will be able to participate directly in peer-to-peer projects on the platform safely and securely.
5) It is expected that cryptocurrencies are the future of paying for goods and services online and the crypto market is expected to have a compound annual growth rate of ~35% over the next five years. Currently, only ~3% of all online purchases are made with Bitcoin. As awareness of cryptocurrencies
increases it is expected that more people will use these to purchase goods and services online. Additionally, demand for stores and marketplaces which accept cryptocurrency as payment will also dramatically increase. These predictions increase the likelihood of success for well developed and managed online platforms, such as the upcoming RPT platform.
6) From now until 2021, the seven predicted fastest growing countries for e-commerce sales are all in Asia, while the majority of global e-commerce is B2B (Business to Business). The rapid growth of e-commerce in Asia cannot be ignored, with Malaysia, India, and Indonesia expected to have an e-commerce compound annual growth rate greater than 20% until 2021. Significantly, B2B (business to business) e-commerce sales are approximately three times larger than B2C (business to consumer). Currently in 2017 the B2C + B2B markets together made a staggering $10 trillion USD in sales. If RPT can tap into the B2B, B2C, and P2P (peer to peer) markets, the potential for rapid and sustained growth is incredible. A point worth noting is that 75% of users want to purchase goods in their own native language, while 59% never purchase from English only sites. This is extremely important, considering the majority of population growth, transition into the working class, and e-commerce growth is expected from Asia. A well designed, multi-lingual platform is crucial to success, and will give a significant competitive edge over other platforms.
Part 3: So what does this mean for the RPT platform?
Whilst anything can happen between now and the next five years, the trends and forecasts outlined suggest that the world is set for a large sustained growth in e-commerce trade. There will be an increased demand for platform services, as well as demand for low fees, safe and secure trading, anonymity, and payment using non-traditional currency. The planned launch of the RPT platform this year is well timed and well suited to fill the needs and demands of peer to peer platform services. If the team can design, build, and translate the platform to take advantage of the global nature of online buying and selling, and if they can tap into the B2B, B2C, and P2P markets, then we could
well see a platform giant emerge. Finally, regarding RPT growth. For the purposes of this article, let’s assume that the market cap of RPT is approximately equal to the trade volume. And if we have just 10 fiat peer to peer platforms utilizing our platform with just 12 projects each per year with an average of $200,000 USD per project then we would have a minimum of $48,000,000 traded each year on projects alone. Now there are literally hundreds of platforms that can benefit with a payment platform and RPT are the first to market with a platform designed specifically for this market. So with just 120 projects annually you have a token that has risen in value 500%, without accounting or estimating the increase in value from trading. Given the risk vs reward scenario outlined above, and the global e-commerce growth and predicted trends, I am comfortable with my investment position in RPT.
Andrew England — Real Property Token