Crypto Corner: Crypto can play a role in the virtual and physical property game
A recent conversation with a game developer about his exploits in the metaverse revealed something to me that I had never quite understood.
You see, like most rational adults, I couldn't understand how and why people would spend money on virtual property.
There's infinite supply because the developers can just make more space, right?
Apparently not. When you're buying virtual property, you're actually buying compute capacity (or computing power) on a server somewhere, and that costs money.
Your NFT is like your house key – and GPS coordinates to let that particular part of the internet know where it is (the interplay between the internet and private blockchains is complex, but I digress).
This transaction is also done via the crypto token associated with that blockchain, which is Solana in this particular case. What is concerning is that the developer quickly swaps to a stablecoin and then moves to an exchange to cash out – because some bills can't be paid with crypto, yet.
Meanwhile, in the meatspace (that's what early metaverse enthusiasts called the physical world), the US Federal Housing Finance Agency is considering cryptocurrency when deciding whether someone has enough assets to qualify for a home loan.
So if someone owns R1-million in bitcoin held on Binance, for instance, that might help boost their application.
Why is it considering this? Because the housing market is struggling under high interest rates and including crypto could help more people qualify for loans. It also aligns with a Trump administration push to make the US a global leader in crypto innovation. This is also exactly the kind of thing that is quite catchy for emerging economies that are looking to capitalise on the crypto momentum.
If the idea spreads here, I wonder if that game developer's crypto earnings could be used to secure a traditional home loan. He could then systematically convert his virtual property gains into rands to pay off the real-world property debt. DM
This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
3 hours ago
- IOL News
ANC NEC meeting to discuss US tariffs 'will not resolve Trump's beef with the party'
Political analysts say the ANC National Executive Committee is wasting its time in discussing the US 30% tariff imposed on South Africa's exports. Image: File Picture Political analysts warn that the ANC is unlikely to resolve its differences with the US over the impending 30% tariff on South African exports, as the party held its National Executive Committee (NEC) meeting in Johannesburg at the weekend. The tariff is expected to take effect on August 7, as announced by the Trump administration on Thursday. South Africa is the only country from sub-Saharan Africa singled out in the announcement, reflecting the US's strained relationship with Pretoria. Other African nations, including Lesotho and Zimbabwe, have been hit with a 15% tariff, which will also come into effect in seven days. The decision is a huge blow to South Africa, as the US is its second-biggest trading partner and comes despite trying to agree a trade deal with the US, which included buying US liquefied natural gas, simplifying rules for poultry imports and investing in US industries like mining. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ On Saturday, ANC NEC member Dr Kgosientsho Ramokgopa told journalists that there had been a focused discussion on the US tariffs, describing it as 'spirited and robust'. Ramokgopa said the negotiations between South Africa and the US were ongoing, adding that both countries would be able to find each other. However, political analyst Zakhele Ndlovu said although the NEC was expected to talk about the issue, there is not much that the ANC can do. He said Trump was not happy with many things including domestic and foreign policies. 'The ANC needs to figure out how to deal with generally hostile Republican administrations, and the Trump administration, in particular. Trump's beef with the ANC centres around domestic and foreign policies. On the domestic front, Trump is unhappy with the Expropriation bill, BEE and Diversity, Equity and Inclusion (DEI). "On foreign policy, Trump is bitter about the decision to take Israel to the ICJ (International Court of Justice),'' Ndlovu said, adding that the time has come for the ANC to stop confusing its interests as the country's interests. 'I don't see the ANC coming up with any solution here. It is caught between a rock and a hard place,'' he said. US-South Africa relations have hit rock-bottom since Trump took office in January. The US President stopped all aid to South Africa, accusing it of discriminating against its white minority. South Africa has repeatedly denied this. Ramaphosa held talks with Trump in May in a bid to mend relations but this failed to make any headway. In July, the US House Foreign Affairs Committee passed a bill to review the US-South Africa relations due to objections over its foreign policy and potentially imposing sanctions on senior ANC leaders. The bill accuses the ANC of undermining US interests by maintaining close relationships with Russia and China, which are among its allies and trading partners. It also accuses South Africa of backing Palestinian militant group Hamas in its conflict in Gaza with Israel- an accusation South Africa has denied. Last week, Trump indicated he did not plan to attend the G20 summit taking place later this year in Johannesburg. Another political analyst, Ntsikelelo Breakfast, said the ANC is wasting time discussing the tariff imposed by the US, adding that there is nothing the party can do to avoid the situation. 'There is no way out here. The European Union (EU) signed for 15% this week, and who are we if the EU can give in. I thought we were able to convince Trump and his administration after the meeting in May but clearly Trump did not buy it and now there is legislation to sanction ANC leaders, said Breakfast, adding that this means Trump has taken a hard stance towards South Africa and the ANC. Breakfast said that Trump's threat to skip the G20 summit also cemented his position about South Africa, saying 'this is a smack in the face'. Political analyst Professor Sipho Seepe said the US's quarrel with South Africa goes beyond the alleged white genocide and that an appreciation of the basis of the quarrel would help in the crafting of an appropriate response. 'No amount of public relations exercise or photo opportunities that Ramaphosa loves so much will resolve South Africa's varied problems,' he said.
The Citizen
10 hours ago
- The Citizen
'It's just gone', Trumps tariffs cost SA company R750m overnight
The blow risks the livelihoods of the company's 500 employees and around 3 000 people working in its local supply chain. South African companies are already starting to face the impact of the US President Donald Trump's tariffs, with one losing R750 million in contracts overnight. Trump ordered the reimposition of 30% tariffs on dozens of trading partners, including South Africa, on Thursday – his cornerstone strategy for reshaping global trade to benefit the US economy. The rand fell to its lowest level in three months, while thousands of jobs are in danger. The US president has warned of slapping an additional 10% on the Brics nations and any other economy aligned with the grouping. Millions lost Jendamark Automation, based in Gqeberha, Eastern Cape, is among several businesses that export high-level manufactured goods and agricultural products like ostrich leather and raisins to America, whose products have become 30% more expensive overnight. Managing director Siegfried Lokotsch told City Press that the impact has been swift and severe. The 500 employees at Jendamark Automation build automated assembly lines and develop production software for automotive manufacturers Ford, BMW, Volkswagen and Mercedes-Benz. According to Lokotsch, he had to inform the company's board that contracts worth R750 million, which they were on the verge of signing in the next few months, had evaporated. 'It's just gone.' ALSO READ: Trump's 30% tariffs on SA a 'barrier to trade and shared prosperity', Presidency says [VIDEO] Job losses Lokotsch said the blow risks the livelihoods of the company's 500 employees and around 3 000 people working in its local supply chain. The Nelson Mandela Bay Business Chamber, representing about 700 businesses in the region, is concerned about the scale of the threat. 'Big blow' Denise van Huyssteen, chief executive officer of the Nelson Mandela Bay Business Chamber. said the imposition of the 30% tariffs by the United States on South Africa on 7 August is a big blow for local businesses, especially in the automotive and agricultural sectors. 'The Eastern Cape economy is likely to be the most adversely affected in the country by these developments. This is not just an issue which affects companies that do trade with the US, it is a global issue. 'The global trading system has been upended, and relationships between long-standing trading partners will shift as countries move to protect their own interests and domestic economies. Multinationals will also adjust their manufacturing footprints to assemble in those markets where they can do so the most efficiently and competitively,' Van Huyssteen said. Concerns Van Huyssteen said they are deeply concerned about the impact of these developments may have on our automotive industry which is anchored by the Original Equipment Manufacturers (OEMs) which undertake completely-knocked down assembly in South Africa. 'These OEMs are responsible for creating well over a 100 000 jobs at their own operations and within their components supplier networks. 'Furthermore, it is estimated that the knock-on employment impact of these OEMs and components manufacturers results in over 500 000 formal jobs being created across the entire automotive supply chain. Around 40% of automotive employment in the country is located in the Eastern Cape,' She said. Van Huyssteen said it is essential that the government moves to strengthen trade relations with existing key markets such as Europe and Southeast Asia. 'This must be directed at retaining and growing mutually beneficial trade opportunities.' 'Negotiate' Last week, President Cyril Ramaphosa told journalists that South Africa would use the week-long delay in implementing 30% tariffs to 'negotiate as strongly and as hard as we can' to avoid the penalty and save jobs. South Africa offered to import liquefied natural gas and some US agricultural products, the trade ministry said last week, It said South African firms have also committed to investing in US mining and metals-recycling industries and to pursuing joint investment in critical minerals, pharmaceuticals and agri-machinery. ALSO READ: Ramokgopa dismisses claims US tariffs target BEE policy but admits it needs 'tweaking'
The Star
13 hours ago
- The Star
FW de Klerk Foundation urges South Africa to diversify trade amid US tariffs
Bongani Hans | Published 17 hours ago Apartheid's last president, FW De Klerk's foundation has added its voice in calling for South Africa to stop being overly reliant on America and look elsewhere for trade deals amid concerns over President Donald Trump's 30% tariffs on exports. In what could be seen as the country's population bending together against the economic squeezing tariffs, the foundation echoed DA leader John Steenhuisen in calling for the country to spread its wings wider, looking for alternative markets across the world. Steenhuisen, in his capacity as Agriculture minister, said recently that the country is strengthening its trade alliances with the likes of Chile, Peru, and New Zealand 'to jointly lobby for fair and stable trade treatment of fresh produce' through the Southern Hemisphere Association of Fresh Fruit Exporters. He also said the state had finalised new phytosanitary protocols for the export of avocados to China, table grapes to Vietnam and the Philippines, and maize to India. FW de Klerk Foundation's Ismail Joosub called for the strengthening of trading ties ' with our BRICS partners and Africa'. The foundation was concerned about the South African Reserve Bank warning that the tariffs could cost the country around 100,000 jobs, 'hitting our agriculture and automotive sectors the hardest.' South Africa is a member of BRICS, which the US sees as a threat to its global economic and political dominance. 'China's vast market, for instance, can buy more of our minerals, wine, and fruits. 'India, Brazil, and others present growing export destinations if we proactively pursue them,' Joosub said in a statement. He issued the statement on Friday, the same day Trump implemented the tariffs, which he said would be effective on August 7. According to, Charles A. Ray, a chairperson of the US-based Foreign Policy Research Institute's African Program and former US ambassador to Cambodia and Zimbabwe, US was unhappy with South Africa's proximity to China and Russia and its membership with BRICS. He said it ' has since become an alternate political forum to the US-led West, seeking to shift the global order more to the advantage of China and to move away from the US dollar's domination of the global economy'. According to one of Trump's Executive Orders, South Africa was undermining the US's foreign policy and posed threats to the US and its allies' security and interests. ' Our government is already working with industry to find alternative markets for our goods and support affected sectors with contingency plans. 'We should build on this by ramping up trade promotion in Asia, the Middle East and across Africa. 'In short, if one door closes, we must be ready to open many others,' said Joosub. He said another step to protect and grow the economy was to invest in youth, skilling young people by taking advantage of an initiative that China has established through its Luban Workshops, which are vocational training centres in nearly 20 countries. 'South Africa should welcome such initiatives and even expand them here at home, [as] at last year's BRICS summit in Johannesburg, a BRICS Skills Challenge showcased how collaboration in fields like robotics, data science and aerospace can help our youth develop critical skills. 'Millions of talented South African youth remain on the margins, [so] we need to harness their potential through education, training and entrepreneurship support,' he said. Joosub also called for the country to look at technical exchange programs, scholarships, and joint research with programmes with China, India and others to help the country cultivate much-needed skills in engineering, artisans and the innovation sectors. 'By equipping young South Africans with world-class skills, we not only reduce unemployment but also make our economy more competitive globally. 'Our Constitution's preamble enjoins us to ' free the potential of each person , ' and there is no greater potential waiting to be freed than that of our youth,' he said. The foundation was concerned that unemployment was already at 32,9% and youth unemployment exceeded 46%. 'We cannot afford further blows. It's a stark reminder that nearly half of young South Africans struggle to find work,' he said. He said the US was punishing South Africa for its domestic policies, including affirmative action and Black Economic Empowerment, and the country's diplomatic stance on the Russia-Ukraine war and a genocide case against Israel , which he said the US views as creating barriers or running counter to its interests. 'We should be candid: while the American approach is blunt, it has exposed fault lines in our own house. 'This tariff standoff is, in part, a reaction to our policy choices - and it compels us to reflect on whether those choices are achieving their intended goals,' said Joosub. President Cyril Ramaphosa believes his administration will still be able to find a way out of the 30% tariffs before August 7. [email protected]
