Having cryptocurrency as an available payment service isn’t only trending within sports news alone. More and more sectors and industries are embracing the idea of offering cryptocurrencies as a payment method including the real estate industry.
Since cryptocurrencies have grown in popularity over the past few years since the booming era of Bitcoin, the advent of NFTs have made cryptos more accessible as an investment platform. Nowadays, cryptocurrencies have turned into household names with more people taking interest in its forms like Bitcoin and Ethereum.
If you happen to have any of these and are looking to make some large investments, then you can delight in knowing that it’s now possible for you to purchase a house using cryptocurrency. Should you be interested in wanting to learn more about this, you can stay reading for more.
According to research, cryptocurrencies are a type of virtual decentralized payment system that operate through the use of a blockchain. There’s a lot you can do with these like make purchases for goods and services in the same way you would with the use of a fiat currency. The only difference with cryptos, however, is that not all vendors recognize cryptocurrencies as a valid payment option.
Apart from the popular Bitcoin, there are also other cryptocurrencies that you can look into depending on what exactly you’re looking to do with the coin since most of them serve various purposes. There are several legitimate platforms that you can use to purchase cryptocurrencies like websites and apps. Also, the virtual space is making room for more online brokers to enter the space and create opportunities for investors interested in investing in cryptos.
How Cryptocurrencies Work
You need to exchange your real money with an equivalent cryptocurrency amount using an online platform that can perform the exchange. While this is happening, an investment record is made on a blockchain that acts like a database to store the order of the transactions happening. All the records made on the blockchain are permanently made and visible to the public for anyone to see so that all transactions are traceable but anonymous.
When we apply this information to the real estate business, it becomes rather complicated for lenders to verify who or where the money is coming from since cryptocurrency transactions are done using anonymous identities. This can prove to be rather problematic but doable.
Buying A House Using Bitcoin Or Ethereum
As we had mentioned earlier, various cryptocurrencies serve different purposes. If you’re looking for the best cryptocurrency to invest in so you can buy into real estate, the best option would be to consider Bitcoin or Ethereum.
To buy a house using cryptos, both the buyer and seller would need to first agree on this. As a buyer, you would need to find escrow and title insurance companies that will agree to handle the process since the transaction isn’t involving fiat currency. Though this may seem rather daunting to do, you have several avenues and options to consider that are readily available online.
Advantages that you can expect to come across should you choose to use Bitcoin or Ethereum as a payment option include:
- The ability to trade a volatile cryptocurrency asset for a secure real estate asset
- The ability to find a crypto offer that can offer you a discount if the investor is confident that they can gain a profit from the cryptocurrency that you are offering to them
- Using cryptocurrency to facilitate the payment can speed up the process of buying the property since certain parties and mortgage process hurdles are excluded from the process
But with every advantage is also a disadvantage and you can expect to come across these when you’re using cryptocurrencies to purchase a property. These include:
- Still being under the volatile nature of cryptocurrencies that are constantly changing in value
- There are still many property sellers that are unfamiliar with using digital currency, making it challenging to find sellers that are fond of the payment service
- Because a crypto stash to buy a house is rather large, it can become challenging to find a seller that can accept the digital currency on property listing sites.
With the right connections, the process of buying a house using cryptocurrencies can be smooth. However, if you’re unfamiliar with the process, it might be of benefit to you to do some research and make sure you’re partnering with the right people and platforms.
Krishna Murthy is the senior publisher at Trickyfinance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.