The turn of the new decade has seen a rise in the popularity of cryptocurrencies, which were once relegated to the fringes of financial transactions. Nowadays, it is a different story as cryptocurrencies are becoming increasingly popular with both corporations and individuals interested in these digital assets.
The buzz around cryptos has seen the market capitalization of the entire industry rise to $1.90 trillion. The latest craze around cryptocurrencies is about the buying and selling of homes.
The practice of purchasing homes with Bitcoin is on a steep incline, with several high-end realtors listing expensive homes for sale with Bitcoin.
Bitcoin Mania Seeps Into Real Estate
Reports trickling in show a growing trend among realtors of buying and selling homes with cryptocurrencies. The go-to crypto of choice seems to be Bitcoin, which has garnered a significant following to become the most popular cryptocurrency in the world with millions of users.
Diana Olek of CNBC reports that the concept of purchasing homes with Bitcoin was practically unheard of about three years ago when selling a home with Bitcoin was almost impossible.
However, the tide seems to have turned in response to the growing popularity of Bitcoin. “More people are asking how to go about using Bitcoin as the form of currency in the purchase of real estate,” says Tony Giordano, president of Opulent Agency.
According to Giordano, to buy a property using Bitcoin, you will have to find a real estate agent who works with Bitcoin, a crypto-real estate attorney, and a third-party escrow who can transfer and hold the token. The transaction becomes a lot easier when it is a paid-off property without any mortgages.
On the Flipside
The Downside Of Buying Homes With Bitcoin
The soaring price of Bitcoin is linked to traditional economic concepts of demand and supply. At the moment, demand outweighs supply, posing a challenge for people looking to purchase or sell real estate with cryptocurrencies.
The scarcity of Bitcoin does not provide enough incentive for holders to part with their crypto to purchase real estate. It is not unusual to see houses listing for both Bitcoin and dollars as a way around this challenge.
However, Diana Olek notes that with the prices of homes shooting through the roof, this challenge will be a thing of the past. The market for high-end luxury homes with international buyers does not face this challenge as putting the price tag in Bitcoin serves as an incentive for even faster sales.
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Source: Cryptocurrency - investing.com
