The real estate market has always been a popular investment. Couples are always looking to move into their first home. There are also parents who no longer need such a big house since their children left. Even investors and businessmen seem to think that owning real estate can help your financial situation in the long run.
However, there are certain changes that can be made to the market. Implementing more (and better) payment options and shortening the transaction process are just two of them. This is a perfect opportunity for cryptocurrencies such as Bitcoin to enter and shape the market better.
The virtual currencies that have slowly started circulating into mainstream use have found their application in the real estate market, as well. People buy Bitcoin for many reasons, and this is just an additional one. Not only that but it’s also predicted that cryptocurrencies such as Bitcoin and Ethereum have the ability to make notable improvements in buying and selling real estate. Find out how below!
Transparency
Cryptocurrencies could become revolutionary in the real estate market because their fundamental law is transparency. The system is decentralized and nobody can manipulate the market, especially not banks and governments. This is incredibly necessary considering these institutions have a hand in the price fluctuations.
However, it’s not just about the manipulation. With cryptocurrencies, the ownership and financial history of the property are also accessible. This helps prevent inflation of the price and lets potential buyers know the true worth of the property.
Of course, this isn’t always the case. Some properties undergo changes between the previous owner’s purchase and selling points. However, it can still provide a general idea of the changes that were made.
Finally, transaction verification and security can help buyers feel more confident when purchasing real estate. The transaction history also contributes to this feeling among buyers.
Investment opportunities
Because cryptocurrency is a fast and secure payment option, more and more investors are turning towards these currencies. In turn, this means that more investors might use cryptocurrency to invest in the real estate market. Naturally, this means more investment opportunities.
It can also present opportunities for multiple investors to pool their funds. This is because cryptocurrencies can be bought fractionally. If you can’t buy 1 Bitcoin, you can only buy 0.7 Bitcoin, and so on. This also means that sellers can price their property at fractional values. As such, multiple interested buyers can set aside these funds for purchasing and investing in property.
The general nature of cryptocurrencies also helps the interest in investment. As mentioned earlier, they are decentralized currencies. It doesn’t require a bank account to start investing, either. This opens the market up to more than just a select few people, helping raise the demand.
Globalization
Because Bitcoin and blockchain technology removes geographical restriction for the real estate market, it also helps contribute to globalization. Currently, the most lucrative projects and resources are only available to accredited agents, contractors, and investors.
Bitcoin’s involvement in the real estate industry changes that. As a result, investors from anywhere in the world can buy property anywhere in the world. Similarly, anyone can sell property using blockchain technology and Bitcoin.
This could also help to stabilize the market. Because there is no need for third parties such as real estate agents and lawyers, the whole process ends faster. Quicker transactions make for better revenue models, projections, and investor reports.
Final thoughts
Bitcoin and similar cryptocurrencies are slowly beginning to gain the same value as traditional payment methods. Although it’s not yet as widespread and some businesses have not yet implemented it, there’s no doubt about its credibility.
Similarly, while most real estate agents, investors, and sellers don’t yet accept Bitcoin as payment, there are specific markets that support this payment method.
Cryptocurrencies are well on their way to changing how the real estate market works. Considering the old, inefficient methods, of which some are still in place, it seems like this is for the better.
