Cryptocurrencies arrive with the ambition to change the traditional ways of purchasing and selling. Today, crypto transactions are on the rise globally, and the real estate industry is no exception.
Here are a few questions that will offer you a deeper understanding of bitcoin property purchase:
Is it Safe?
It is best to take all precautions when you want to speak about crypto-currencies. This subject is of heated debate, demonstrating great uncertainty about its future. However, the real estate world has recently seen the arrival of this new kind of payment method – buying real estate with cryptocurrency. Most investors see it as a viable alternative to buy or sell on the market.
Some sites now specialize in buying and selling goods with these new cryptocurrencies. Most of the ads appear credible but beware. Deals offered in Bitcoin leave the door open to scams and volatile exchange rates. Still, more and more people trust these cryptocurrencies around the world.
All and all, the complexity of these new means of payment does not seem to demotivate daring investors. Plus, there are no frauds reported to date. So, for the time being, it sounds reasonable to go with a bitcoin property purchase.
How Can You Ignore The Risks After The Terrible Downfall of Crypto?
In Nov 2011, the bitcoin price was bottomed at $2. After seven years, all cryptocurrencies experienced a terrible backlash at the start of 2018. With all of these, the cryptocurrency marked itself with unpredicted instability and a major risk.
But surprisingly, these changes have not let real estate investors to backdown. Many remain confident and think about the long term. These roller coasters are expected – they say. Many experts are optimistic about this currency. According to them, it should continue to grow.
Are People Interested?
In the United States, more and more listings of houses for sale are found accompanied by the mention “Bitcoin accepted”. At the end of 2017, the real estate company Redfin noted 75 properties sold on American soil thanks to this cryptocurrency. Even though Bitcoin is an extremely volatile currency, this does not seem to worry some investors. Besides, the lure of profit offset the risks the purchasers have in their mind.
Moreover, foreign investors also see these new payment methods as a solution to avoid currency exchange taxes in certain countries. Half of the buyers of Bitcoin real estate in the United States are from Latin America. For these buyers, bitcoin purchases serve as a solution to bypass the limits imposed on international transfers.
Considering all these points, yes, people are definitely interested in using crypto for real estate transactions.
Sustainable Transformation or a Temporary trend?
Bitcoin is an ungoverned technology that can be used anywhere in the world. It is a way to escape government authority and to make anonymous dealings. And it can surely change the way we do purchases. But it is important to remember that the prices of these digital currencies are not backed by a solid foundation. Only the interests of investors influence their development, and this is a huge risk. And in sectors like real estate, where you risk losing big, it is not wise to invest with your eyes closed.
So are we on the verge of witnessing a real transformation of the market? It seems impossible at present. Some experts see it as only a passing fad. Plus, who knows, maybe it’s just a way for sellers to create a buzz and gain visibility. However, one point is clear – many players are now trying to take advantage of this opportunity to gain a foothold in the real estate market. But only the future will tell whether they are winners or losers!
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