Crypto and Real Estate: This Trend Needs To Keep Going

Crypto and Real Estate: This Trend Needs To Keep Going

Everyone is talking about cryptocurrencies and how they are going to change the world. But what are all these digital coins good for? Well, in this article, we're going to explore a few ways that cryptocurrencies have started playing a role in the real estate industry, as well as some of the potential benefits.

Crypto-Asset Backed Real Estate

One area in which cryptocurrencies are being used is in the real estate industry. Many investors, as well as homebuyers, are turning to crypto-backed real estate offerings to invest in property. The real estate sector has been fairly slow for several years, and it is ripe for change. One interesting example of how a cryptocurrency can be used to buy a house is through an ICO (initial coin offering). An ICO is when a company offers its own type of currency to investors in exchange for real money. The investors then receive a cryptocurrency that they can use to buy various products and services within the company’s network. In this case, an ICO can be used to purchase actual property. After receiving their cryptocurrency, the investor can then sell it at any time or hold onto it for years to come if they believe its value will increase. By using cryptocurrencies as an investment method, many people are hopeful that there could be a return of up to 1,000% or more in the next 5 years.

While the use of cryptocurrencies is still very much in its infancy, there are already some different types of coins that can be used as investments in real estate. One type is known as a utility token and acts like a service charge for the purchase and sale of real property. Another type is known as a cryptocurrency or security token, which gives actual equity in the company and/or assets owned by it. While both options provide a great way to trade real estate and cryptocurrencies, it is important to remember that there are also some risks involved.

What is Cryptocurrency?

Cryptocurrency is a form of digital currency that is entirely decentralized. This means that it has no central issuing authority and can be sent from one person to another without the need for a bank intermediary. Cryptocurrency is made using blockchain technology, which enables transactions to happen with security and anonymity. It is an alternative way to make payments in the digital age. What are the Benefits of Cryptocurrency?

Cryptocurrencies like Bitcoin and Ethereum offer a more secure way of making payments. They do not rely on banks, centralized authorities or even governments to operate. This means that you can send money anywhere in the world without it being traced back to you. Plus, transactions are usually completed much faster than with traditional payment options. Finally, cryptocurrencies can be used by anyone. There is no need for a bank account or access to credit cards - all you need is an internet connection and a cryptocurrency wallet.How Can I Get Started Trading Cryptocurrencies?The first thing you will have to do is find a cryptocurrency exchange. These are websites that allow you to trade fiat currency for cryptocurrencies like Bitcoin, Ethereum and Litecoin. Coinbase, Coinmama, Bitfinex and the Bittrex are some of the more popular exchanges. However, there dozens others out there that accept customers from all over the world.Once you have your exchange account setup and verified, you can then buy some Bitcoins or Ether. You will have to use your fiat currency and not cryptocurrency to make your purchase. Once you have bought Bitcoin or Ether, you can move them into a wallet to convert them into any other cryptocurrency that you fancy. Your new cryptocurrency wallet may need to be loaded with some funds in order to facilitate trades on the exchanges. So if you are trading on Bittrex for example, you will have to fund your account with enough Bitcoin or Ether in order to make any trades. You can use the same fiat currency that you used to purchase your Bitcoins from an exchange as a source of funding for trading on an exchange. Your wallet can also be loaded up with tokens. A token is a type of coin, but it’s not quite a full-blown cryptocurrency. Tokens are more like digital coupons than actual coins and they comply to different rules than most cryptocurrencies. The main thing that makes tokens different from currencies like Bitcoin and Ether is that they aren’t actually transacted on the blockchain. Instead, they are more like vouchers that can be used to purchase other cryptocurrencies.

How is Real Estate Affected by Crypto?

Investors are switching from stock and commodity investing to crypto, which has led to a high demand for real estate in major cities. There is also a trickle down effect where new investors in crypto will need homes in the city. As prices go up, so does the interest rate on loans. For example, rates have gone up to 4-5% for buyers who want to finance their home purchases with a mortgage. Real Estate is a long-term investment and only buy if you can afford to keep it. There are many horror stories of people buying homes that they could not really afford, but if you have the option to rent make sure you do so before making a leap into the realm of home ownership.

Pros and Cons of Crypto in Real Estate

Pros:

- Bitcoin and other cryptocurrencies are making it easier for people to purchase real estate

- A growing number of investors are looking for ways to diversify their portfolios and invest in property

- With more buyers, sellers can command a higher price due to the increased demand

Cons:

- Cryptocurrency is not a centralized currency, which makes it difficult to monitor if there is any fraud in transactions

- It is difficult to determine how much volatility will affect the market before buying property or accepting payment in cryptocurrency- Real estate transactions require a lot of paperwork, which can be time consuming and complicated- Cryptocurrency is not widely accepted which makes it difficult to conduct transactions. This will take time to change as people continue to accept and use cryptocurrencies.A recent article by Forbes described a real estate deal that was conducted via cryptocurrency. The sellers received $1 million worth of bitcoin in exchange for their home.The first property purchase ever recorded in the U.S., according to the public

Overview

The real estate industry is a perfect place to integrate cryptocurrency. Cryptocurrency and blockchain technology can significantly reduce the time it takes to close a deal. There are also benefits related to privacy and tracking. Real estate agents are already using these technologies, so it's only natural that they continue to do so in the future - Mazen Alzoubi