Over the last few years, cryptocurrencies have become widespread, and their values have skyrocketed. Several hundred cryptocurrencies have propped up online and they are being actively traded by crypto traders.
The rise of cryptocurrencies has challenged the traditional payment systems which are centralized and require physical cash. Many industries have experienced disruptions in their business models with the rise of bitcoin and other cryptocurrencies.
Businesses which previously only accepted government-issued currency are now more open to trading in cryptocurrencies.
The real estate market has also seen a rise in cryptocurrency transactions where people are trading real estate for bitcoin and other digital assets.
The application of bitcoin in the real estate industry is becoming more prominent as the payment landscape shifts in favor of digital transactions.
Whether someone is looking to buy a house in Bahria Town Phase 4 or rent a house, it is not uncommon to find a listing online which will accept payments in digital currencies.
In fact, many real estate transactions are now based on digital currencies because of the benefits that come with such transactions.
Cryptocurrencies give people the opportunity to easily buy and sell online. Since cryptocurrencies are not centralized and are not regulated by the government, they can be traded without having to deal with any government entities.
The real estate market presents a huge potential for digital payments because real estate transactions are usually big. Cryptocurrencies make transactions super easy by enabling the seller and buyer to transact directly without having to go through a bank.
The real estate seller can either store the cryptocurrency in a digital wallet or convert the digital currency into a fiat currency such as the Pakistani rupee.
Cryptocurrency transactions have become common in real estate for a number of reasons. Firstly, cryptocurrency presents a very efficient way of transacting. The transactions are fast and secure. The technology behind bitcoin and other cryptocurrencies is extremely efficient and quick.
This is very useful when the transaction amount is big. This is the case in real estate where the average transaction size is big, which can otherwise take a lot of time to process using traditional payment methods.
No Hassle of Paperwork
Getting money from a bank to buy real estate can take a lot of time and paperwork. Not to mention a lot of privacy concerns since the bank will have all the information regarding the size of the transaction.
A direct cryptocurrency sale from one party to another will cut out the hassle and paperwork associated with a traditional real estate sale. Real-time transfer of funds is a key attraction.
Secondly, real estate is a very lucrative and stable investment for cryptocurrency owners. Cryptocurrencies are extremely volatile, and their value fluctuates rapidly. This means that they are very risky assets compared to real estate.
Therefore, many cryptocurrency owners invest in real estate in order to convert their digital assets into tangible real estate assets.
Real estate is a very safe investment and is very stable compared to digital assets. Furthermore, real estate does not have the risk of depreciating overnight.
Real estate prices rise in the long run even if they face a short-term fall in value. The same is not true about cryptocurrencies which can plummet in a matter of hours.
Real estate markets present a very good investment opportunity to cryptocurrency owners who are looking for a safe, stable, and tangible investment.
Finally, cryptocurrencies are safe and private. This means that the seller and buyer do not need to share personal information or fill out a bunch of paperwork in order to transact.
They can transact anonymously using secure digital wallets. Since cryptocurrency is encrypted using a digital wallet, the buyer and seller will have greater privacy with their information, which is extremely valuable in the digital world.
The problem with the traditional mortgage financing is that it requires a lot of paperwork and personal information which is then used to make a decision on whether to disburse the funds or not.
Cryptocurrencies present a huge potential when it comes to the real estate market. Over the last few years, cryptocurrency-based real estate transactions have become more common as people are flocking to find a more secure and stable investment.
Given the rise in demand for cryptocurrencies and real estate, both have become lucrative investments and complement each other in many ways.
Given the legitimacy and attraction of bitcoin and other cryptocurrencies, real estate listings now accept bitcoin as payment.
Since cryptocurrencies can be easily converted into other currencies, they give the real estate seller peace of mind because they can convert the cryptocurrency into any desired currency anywhere in the world.
Property rentals are also accommodating bitcoin payments on their platforms by allowing people to rent houses and other real estate using bitcoin and other cryptocurrencies.
While the role of cryptocurrency in real estate has yet to realize its full potential, it is also important to be aware of the downsides such as online hacking and potential tax implications.
Staying safe online and ensuring that you stay one step ahead of potential hackers is extremely important to keep your transactions safe.
Furthermore, transacting through cryptocurrency does not automatically remove government oversight or exempt property buyers from taxes. Therefore, it is important to use cryptocurrencies responsibly online and do extensive research before executing large transactions.
While the future of cryptocurrency in real estate is far-reaching, and many exciting changes are on the horizon, one thing that remains a constant in real estate is the importance of finding a talented and experienced real estate agent who can guide you through the process, and help you reach your goals.
Graana.com can help you find the perfect agent to achieve your real estate dreams.