We are experiencing a significant shift in the real estate industry. More and more people are engaging in property transactions using digital money. In cities like Los Angeles, Miami, and London, people purchase expensive properties with Bitcoin. Stories abound of developers accepting Bitcoins for new projects in Dubai and New York. Many industry experts are excited about the potential for digital money and blockchain when it comes to real estate. But although digital currency transaction is the future, insiders say that we are not quite there as yet. However, when it comes to real estate market, the many benefits of buying and selling in Bitcoin can hardly be overlooked.
- A Bitcoin transaction is cheaper as it cuts costs by eliminating third parties. The fee to process the transaction is only 1%, which is a requirement for Bitcoin transfers.
- Also, digital sales are compelling in international property markets because they are quick, and in some cases even instantaneous. They remove the need for transfers between foreign banks and currency conversions, which can slow down the process by taking weeks or even months.
- Moreover, it is more transparent than the method for tracking fiat money as the firm just checks the legitimacy of the prospective Bitcoin buyers. Moreover, it is easier and more efficient than traditional currency from a technical perspective.
- Buying property in Bitcoin essentially involves fixing the price in fiat money and then converting it to Bitcoin. But the property seller absorbs none of the volatility as long as they exchange it back to fiat money as soon as the transaction is complete.
Mass adoption obstacles
Some Bitcoin analysts are less convinced that the property market would more widely adopt the cryptocurrency. First, the mechanics to convert their cryptocurrency into fiat money is very limited. But the biggest problem is the fact that Bitcoin and property appeal to different types of investors.