DirtiCoin
DirtiCoin™ is a fungible cryptocurrency with the stability and value of the currency backed by the value of real estate
What is DirtiCoin?
What Is DirtiCoin backed by?
DirtiCoin value is backed by the value of real estate and real estate related instruments (hereafter referred to as Real Estate or Dirt) held by the Company. Although at startup the asset ratio of DirtiCoin to real estate will be low, the Company will move quickly to achieve its target ratio of 65% (+/- 15%). In other words, the value of real estate assets held by the Company will meet or exceed 65% of the value of all issued DirtiCoin with an acceptable variance range from 50% to 80%.
How we guarantee the future of your Cryptocurrency?
Safety from Volatility
The highly localized and fragmented valuation of real estate is a systemic insulator against widespread volatility. The real estate purchased to back the value of DirtiCoin will be purchased in multiple markets across the USA.
Stability against Inflation
Because DirtiCoin is backed by the value of real estate it has an innate tendency to be a deflationary currency, meaning that the buying power of each DirtiCoin tends to increase at a rate that is faster than inflation.
Controlled Supply
DirtiCoin supply is controlled by the coin holders (DirtiCoinDAO): Subsequent minting authorizations or Coin Cap changes require majority vote from DirtiCoinDAO
Key DirtiCoin Facts
Problems you avoid using DirtiCoin
Liquidity
As noted elsewhere in this paper, real estate is largely an illiquid investment. To liquidate real estate investments costs time and money. In contrast, liquidating an investment in DirtiCoin will be done as quickly as the chosen currency exchange permits. If done through a digital exchange it will be nearly instantaneous. If done through the Company, at most, it will take no more than three business days
Transferability
Many companies have recently begun touting the transferability of real estate investments in the form of “tokenized” real estate. Tokenization uses blockchain technology to better enable fractional ownership of real estate. Unfortunately, the tokenization of real estate does not resolve the lack of transferability that arises because of the unique value proposition associated with each individual real estate investment.
In contrast with nearly every other real-estate related investment, DirtiCoin is entirely fungible. One DirtiCoin is worth the exact same as every other DirtiCoin. Buyers are totally insulated from the direct ownership of real estate. The problems of transferability arising from real estate are eliminated. DirtiCoin can be easily transferred directly into BTC, ETH, USD, or some other liquid asset.
Tax Consequences
While buying DirtiCoin is not free of tax consequences, buyers of DirtiCoin are incurring a relatively simple tax compliance situation. They need to track how much the DirtiCoin cost when they bought (cost basis) it and how much it was worth when they sold it. These are the same tax consequences they currently experience with any currency exchange (e.g., FOREX), or stock exchange (e.g., NYSE).
Regulatory Burdens
Real estate syndication and real estate investment trusts (REITs) are two common ways that many people band together to directly invest in real estate. However, real estate syndications have many regulatory requirements which often prohibit who can invest. REITs carry many regulatory burdens which often drive down the returns and are more complicated than many stock purchases and are definitely more complicated than currency exchanges.
