Whether it’s a bubble or bona fide, anyone who pays even cursory attention to the financial world can’t deny that bitcoin is a force to be reckoned with. The decentralized digital cryptocurrency, a form of payment comprised of lines of code, entered the mainstream consciousness late in 2017 and has remained a controversial topic.
The currency that’s purely digital whose value rises and falls quite unpredictably has understandably earned many antagonists. But for true believers, bitcoin represents a revolution in money, where power has been wrested from big bankers and into the hands of the people who use it. So what does that mean for real estate, where major, life-changing transactions happen every day?
There’s been a number of quick adapters all over the industry. From the East coast to the west and even across the globe, Bitcoin has come into enthusiastic use for purchasing real estate. To say that these sellers are simply hopping on the newest craze sells a bit short the advantages that bitcoin carries for the property business.
Average people joining the bitcoin revolution enjoy the freedom from financial institutions that cryptocurrency offers. Rather than a credit card where you’re entrusting your money to a network of institutions, crypto is a one-stop shop without third party interests or issuers taking their cut.
This simplicity in moving funds around is a special advantage when purchasing real estate. The ease of movement eliminates the long waiting periods necessary for looping in the banks, lenders, and fee payments that have been part and parcel of real estate transactions for generations. Today’s cutting-edge homebuyer, armed with bitcoin, can close as soon as they find a property they like, as long as they have a seller willing to play ball. Such expediency is an undeniable advantage.
Buyers hoping for privacy will find exactly what they’re looking for with bitcoin and other cryptocurrencies as well. In an industry where secrecy is often a must for major private transactions, the untraceable, encrypted payment enabled by blockchain technology can give anonymous buyers the complete discretion they desire. Blockchain can also cut down on fraud, so even faceless buyers can be held to the same standard of financial transparency as the rest of us when it comes to spending funds.
Some influential names in real estate proclaim to be intrigued by the Bitcoin craze, but when pressed admit they don’t want to tie their own money into crypto. The risk factor in using a currency that’s more like a commodity is simply too volatile for many, and the potential that bitcoin amounts to another risky bubble has left major financial giants steering clear. So where does that leave the average homebuyer?
For many everyday people, buying a home is enough of a major undertaking without adding in the risk of dealing with such a volatile payment method. In a real estate world prone to bubbles in its own right, mixing bitcoin into the equation may well pile on risk to a situation where buyers and sellers would rather minimize, not multiply, potential hazards.
But for those untimid about riding the ups and downs of this craze wherever it may end up, there are worse things you can do with your money than acquire some valuable real estate. With a growing number of agents and sellers using bitcoin to gain an edge on the competition, you may well end up financing the house of your dreams with money that exists only in computer servers. If the unpredictability of cryptocurrency can be held in check in the future, expect this to truly be the beginning of a transformation in real estate.