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30/11/2017 13:53 GMT | Updated 30/11/2017 13:53 GMT

Benefits Of Using Cryptocurrency To Buy Real Estate

Even with the recent growth and prevalence of the blockchain technology (which is still shrouded in mystery), the real estate industry has still not been seen to fully adopt the technology as a mainstream mode of payment and take advantage of its many benefits.

For a piece of technology that experts have called the future of banking, cryptocurrency is certainly an area of great focus by the trillion-dollar real estate industry. Many main players in real estate have bet on the future of cryptocurrency future by contributing in various ways such as innovations and funding.

Acceptance vs. Reputation.

Cryptocurrency, being an international online currency, can easily attract foreign buyers if incorporated in the real estate business. This is forward thinking in play. Let us compare this to a situation a decade ago when people were skeptical about PayPal when it was introduced as a currency that would ease life for some people. Right now, it has become an integral part of our world, simply because it was accepted.

Anybody truly familiar with both the real estate and blockchain industry knows that real estate is among the 2.5 million items that can be bought by use of Bitcoin. What does this mean? That investment companies, brokerages, and real estate agents are gradually moving towards the Bitcoin plate.

Now, why I don’t necessarily believe that acceptance would automatically mean a high reputation for cryptocurrency, is because of the following facts:

⚫ The global acceptance of cryptocurrency does not necessarily mean that all major businesses hold it in high regard. Amazon, for example, squashed the idea of accepting Bitcoin, saying its consumers have not expressed interest in it.

⚫ Bitcoin’s reputation has been compromised, with many terming it as a platform for criminal transactions. This has certainly brought public relations issues. A Los Angeles hospital was on Feb. 5, 2016, hacked, and the criminals demanded a ransom of $17,000 — to be paid in Bitcoin.

Why you should buy real estate using cryptocurrency

Cryptocurrency, being a decentralized digital currency created on the Internet using software is designed in a way that banks aren’t needed to hold money. One can send money directly from one person to another without having to go through a central system like PayPal or banks.

What does this mean for real estate?

1. Immediate Settlement

Buying real estate usually involves third parties like attorneys and surveyors, fee payments, and delays. In several ways, the cryptocurrency blockchain can be tailored to add or eliminate third party approvals and ensure completion at a time or date, for only a portion of the time and expense required to conclude traditional asset transfers.

2. Reduced Expenses

Considering the fact that the miners are compensated by the network, there are minimal transaction fees for cryptocurrency. The lack of cryptocurrency transaction fee has seen most users create and maintain their Bitcoin wallets.

3. Less Risk with Robust Theft Detection Mechanism

Cryptocurrency, unlike the credit card, uses a “push” mechanism that allows the buyer (cryptocurrency holder) to pay exactly what they intend to the recipient without further information. Credit cards operate on a “pull” mode where when you give a merchant your credit card, the seller initiates the payment then pulls out the designated amount from your account. Cryptocurrency is superior because no amount of money can leave a holder’s account without their consent since they can instruct payments from their wallets. A credit card user has to trust the card network, the card issuer, the merchant, and IT supplier.

4. Global Recognition

Luckily, cryptocurrency isn’t bound by the interest rates, exchange rates, or other inflationary charges of any nation. It can be used internationally without experiencing any troubles. This saves lots of money and time spent by investors transferring money across nations. Cryptocurrency operations at universal level, making transacting more efficient.

What are People Concerned About?

The main concern on everyone’s mind when dealing with cryptocurrency is security. The major solution businesses search for as they shift to blockchain technology is network reliability and data security. Luckily, there are steps towards making sure the users are fully protected.

Another common concern is the speed of transaction. When choosing between the common players like Etherum, Bitcoin, PayPal, Visa, and Universa, you want to consider the speed of each when it comes to conducting transactions. For instance, Visa allows 2,000 transactions per second while PayPal does 450 in the same amount of time, which is still higher than Ethereum which does 20 transactions per second. On the other hand, Universa allows up to 20,000 transactions per second.

Consumers are also attracted to cheaper options when it comes to transactional costs. It eases the transition journey.