by Taylor Pipe on 06 May 2021
How the world-famous cryptocurrency is changing real estate transactions in 2021.
One of the wildest developments to come out of the 2010s was the development of Bitcoin, a cryptocurrency that was once seen as a bit of a joke. However, Bitcoin is proving itself to be a huge financial asset and has soared to over $50,000 per share. If a person has purchased 30 stocks of Bitcoin, they would be around $1.5 million richer than they were at the time of purchase.
Even Elon Musk has made it possible to buy Teslas with the newly-popular cryptocurrency. Bitcoin has proven to be an investment that buyers trust, and with the value for this digital asset increasing upward of $55,000 a share, it makes sense that the crypto could be used to purchase physical assets, like real estate.
What is Bitcoin?
The digital currency was created in 2008 and was meant to be a form of exchange. Like most cryptocurrencies, Bitcoin runs on a blockchain. A blockchain is basically a ledger or list of every transaction made to make it easier to see where money is moved around and offers a private wallet or key to make it easier for buyers to trust their investments.
Blockchain crypto is often more secure and can become recoverable if things do go wrong. Typically, the blockchain will give you a QR code with a private key to your updated transaction list. This could make it easier to recover lost wealth, but typically Bitcoin is so secure that this isn't needed.
When Bitcoin first came on the scene each stock was on sale for under one dollar. According to CNBC, if you had invested just $100 in Bitcoin in 2009, you'd have a profit of over $48 million today. That's enough to re-invest, buy a home, or live off the interest of your initial investment.
So what if you did have enough invested in the cryptocurrency to start using Bitcoin for other purposes than building wealth. What if you used cryptocurrencies to purchase properties?
Purchasing real estate with Bitcoin
It's no surprise that Bitcoin is one of the hottest modes to buy real estate with today. Simply put, if you have a large stash, you could sacrifice a few coins and get a great deal on a real estate investment. For example, since Bitcoin has been hovering around the $55,000 mark, you could spend 12.7 in Bitcoin and get a $700,000 house.
Using Bitcoin for your real estate transaction seems to be the new frontier in terms of bargaining and property hunting. Everyone wants to cash in on the blockchain cryptocurrency because they see the data pointing to significant increases in the long run.
This is especially poignant for sellers in metropolitan areas who have high-priced property. The idea of using technology for buying real estate mixed with the idea that the seller might become wealthier due to the history of bitcoin is very enticing. This means if you're trying to purchase real estate with Bitcoin, the seller will probably accept your offer on that alone.
Choosing to buy real estate
Unlike the popular blockchain cryptocurrency, using Bitcoin as payment in real estate transactions can have its benefits. Traditional dollars can take longer the process than Bitcoin. Blockchain technology also has the ability to secure data and create a ledger for all Bitcoin and real estate-related transactions. This technology might make buying and selling properties easier in the coming years.
As a buyer, owning cryptocurrency is a huge asset when working with sellers and working out legal fees for residential and commercial property. Including Bitcoin in offers would typically give you the cutting edge and security when competing with clients for other listings.
Is there a downside to using Bitcoin for a real estate transaction?
The real risk of buying real estate with Bitcoin is that you're losing your initial buy-in. When you choose to invest in cryptocurrencies, there is a risk, much like traditional stocks. You never want to sell your stock, only to learn it's increased ten-fold overnight.
The value of Bitcoin is increasing rapidly. According to CNBC, forecasters are saying the price of one Bitcoin might hit half a million dollars by the end of the decade and might eventually reach $1 million per coin. But whether the price of each would go up is kind of in the air as investing in cryptocurrencies can be volatile.
If a buyer is offering cryptocurrency when they purchase real estate, it can definitely be a game-changer. Property is definitely more of a physical asset than cryptocurrency. And a buyer may persuade a person to sell to them by using the blockchain crypto as leverage in real estate transactions.
It might help you get that new house with a newly-built in-ground pool that you'll be using all summer long. Or it might be worth it to make the price of a particular property not seem so daunting. If you read up on where the blockchain currency is going, you may not be so quick to jump into the real estate market waving your Bitcoin around.
Is it worth paying for real estate with Bitcoin?
To make a long story short, you can definitely buy real estate with Bitcoin. But you have to be willing to accept that the blockchain cryptocurrency might rise due to new unforeseen developments, including the possibility of it going in the complete opposite direction and tanking in price.
Check with experts before you make a complete decision that can impact your wealth. Call brokers and determine which purposes make holding on to your Bitcoin more attractive. Read up on future earnings and trust that the blockchain cryptocurrency will probably keep rising at this rate.
You can buy real estate with Bitcoin. However, that doesn't necessarily mean it's going to be worth it. Real estate is a great investment because it's physical and it can appreciate in value immensely over the years. But the same can be said for Bitcoin and other cryptocurrencies - even DogeCoin.
Looking at listings may be appealing, but watching your Bitcoin increase is more satisfying. That being said - if you have the means to buy crypto and use it as leverage in the real estate market, why not? Real estate is one of the safest investments you can get into and that should be enough for high-stakes gamblers who take chances on cryptocurrency to be willing to get into the market and see their money actually work for them.
It's no secret technology has enabled us to do things we never thought possible. From carrying high-definition cameras in our pockets to creating a new form of blockchain currency that is more valuable than the physical dollar, technology is shaping the way we do everything.
It might even change the way we look at real estate and buying property forever.
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