Cryptocurrencies are becoming increasingly common in our markets, and it’s no surprise that they have found their way into the real estate industry. Recently, a commercial property worth $29 million in New York has been listed exclusively for Bitcoin. While the use of cryptocurrency in real estate transactions is not new, it is becoming more mainstream in local property sales. Read on our guide on digital real estate to learn more.
Bill Zielke, the CMO of BitPay, has been handling crypto transactions in real estate for years, offering a secure and fast alternative to traditional payment methods.
Given the growing popularity of cryptocurrencies, real estate agents should consider studying the potential benefits of using crypto technology in their practice before it becomes the norm.
Marketplace Platforms
Cryptocurrencies use blockchain technology to tokenize real-world assets like real estate. This digital representation of assets can be bought, sold, and transferred online, making transactions simpler and more accessible. It allows real estate trades to operate like stock exchanges, and home purchases to be as easy as online shopping. Additionally, it enables the easy conversion of assets to fiat currencies through online trading platforms.
Major benefits of tokenizing real estate assets include:
- More liquidity
- Lowered barriers for investment
- Programmable security
- Immutability
Cutting Out Middlemen
When managing your real estate deals, it can be overwhelming to have multiple parties involved in the process, from handling listings to payment transactions and legal documentation. Luckily, blockchain technology is revolutionizing the industry by streamlining these tasks, eliminating the need for intermediaries like lawyers and bankers.
This means that buyers and sellers can save money by avoiding the fees and commissions typically charged by brokers, lawyers, and banks. Additionally, with fewer parties involved in the process, transactions can be completed more efficiently.
By leveraging this technology, you can differentiate yourself from your competitors and offer your clients a more efficient and cost-effective solution for their real estate needs.
Real Estate Smart Contracts
Blockchain technology has revolutionized the real estate industry by providing exceptional security features. Digital contract automation and record-keeping are now safer for you and your clients. Personal information is securely stored on the blockchain, which makes credit checks quicker and ownership transfers automatic. The blockchain system also reduces fraudulent claims and transactions. This helps in ensuring the safety of property owners and real estate agents. With all the essential information stored in the blockchain, analyzing property details such as title, deed, land registry, and co-ownership becomes easier for investors and agents.
The Current State of Bitcoin
Bitcoin and other cryptocurrencies are experiencing a surge in value this year. As a result, people are using their digital coins to buy a range of items, including property, cars, entertainment, and fashion. In fact, luxury purchases using cryptocurrency are also on the rise. According to BitPay, approximately 32% of their processed volume in October came from the sale of high-end goods. Interestingly, Bitcoin accounted for 60% of the total volume of luxury purchases made through BitPay using cryptocurrency.
How Buyers Can Use Bitcoin to Buy Real Estate
There are many cryptocurrencies out there, but when it comes to real estate, Bitcoin and Ethereum are the most commonly accepted ones by title insurance and escrow companies. However, some companies may be hesitant to support ventures funded by cryptocurrencies. It’s essential to research before using crypto as a real estate agent. To ensure success, it’s best to convert your crypto into dollars and use them during the transaction process, especially if the other parties are unfamiliar or skeptical towards cryptocurrencies.
