How to purchase a property with cryptocurrency?
This article is structured as follows:
- What is Bitcoin and Cryptocurrency?
- How can we use it in the real estate market?
- What are the advantages and inconvenients?
- Why is it the future in real estate business?
Bitcoin and Cryptocurrencies
Cryptocurrency is a form of payment that can be exchanged online for goods and services. Bitcoin is one of many cryptocurrencies that use the blockchain technology, an online ledger that is decentralized and contains all of the transactions that have been executed on the platform. The cryptocurrency exists only in electronic form. There is no physical component to this type of currency and the “coins” are stored in a specific online or offline wallet for sending and receiving transactions.
The availability of anonymous transactions, overall value appreciation, and a fast and cheap international payment method (compared to credit cards / paypal and wires), has led to Bitcoin and other cryptocurrencies to become increasingly mainstream.
Cryptocurrencies & Real estate
The future of cryptocurrency as part of the real estate market is described by “Realtor Magazine” as a matter of “how and when”. From buying a drink, to booking vacations and now purchasing homes, you can use cryptocurrencies.
How does it work when buying/selling a property?
The most important to complete a real estate transaction using cryptocurrency is for both parties (the buyer and the seller) to agree for the transaction to take place using such a currency. Although all currencies are prone to market fluctuations, the volatility of Bitcoin and other cryptocurrencies means it is only possible if both sides agree on the value of that particular currency.
What are the advantages & inconvenients?
Because of the difficulty of moving fiat money (US$, €,…) in large amounts due to bureaucratic issues, high commissions and security, cryptocurrency offers the possibility of making payments using various platforms depending on the country where the counterparties are located.
This form of payment gives the following benefits:
- Privacy when buying property
- Easier international and overseas transactions
- Avoiding tax on property transfer
- Liquidity in real estate investing
- Reducing the cost of real estate transactions
- Balancing the security/durability of brick and mortar with the volatility of Bitcoin
The volatility and unpredictability of cryptocurrencies make it a potential risk. That is why it is recommended to use “Stable coin”, a new class of cryptocurrencies that offer price stability and is backed by a reserve asset.
Stable coin examples:
-True USD (TUSD)
-USD Coin (USDC)
-Binance USD (BUSD)
We recommend as well to be guided by a professional, that will accompany you throughout the whole process, in exchange for a small commission.
Discover here our consulting partner in crypto payments: LA.Tradingclub
Why cryptocurrencies are the future of real estate?
Bitcoin & cryptocurrencies have been used in the real estate business for several years now. There is a better understanding of how to use it. The market is growing and the real estate platform will soon be more intuitive and convenient for purchasing.
Contact us for more information.