Cryptocurrency’s popularity is on the rise, and for a good reason. The value of crypto has increased at an incredible pace. Look at Bitcoin. In 2010, it wasn’t even worth a penny. At the time of writing, it is worth just under $40,000! There are also other forms of cryptocurrency that have also increased in value and quite rapidly.
One of the big questions is, can cryptocurrency be used to buy real estate?
The short answer is, yes -if you can convince the seller of the property to sell their home in exchange for cryptocurrency, it can be done. However, buying real estate with cryptocurrency is not the norm, at least not yet. However, there is reason to believe that eventually, more homes will be purchased using it.
When Will I Be Able To Buy A House Using Crypto Currency?
We think the future of real estate will definitely include payment via cryptocurrency. Many new startup companies are already planning to purchase investment properties via cryptocurrencies. It seems the main issue is there isn’t a system in place to use cryptocurrency. It can’t be used as a down payment to get traditional funding. Plus, the crypto market is highly volatile so even if you had the funds today, the value may plummet, and you wouldn’t have enough to cover the cost of the home.
As we speak, people are working to figure out how to solve these issues. Entire online marketplaces are being created to purchase products, including real estate, using cryptocurrency.
Has Crypto Currency Impacted The Real Estate Market?
As of now, cryptocurrencies have not significantly impacted the real estate market. However, once it becomes regularly used in real estate transactions, it will. If cryptocurrency becomes a common way to purchase real estate, it could cut out lenders and their regulations entirely. One of the perks of cryptocurrency is that it is still untraceable. As of now, it is easier to transfer large sums of cryptocurrency than it is to transfer cash without raising red flags.
Something else to consider is that the use of cryptocurrency could reduce the amount of fraud in real estate. All information regarding the transaction, including property rights, names, and the previous owners would be stored on secure systems with no way to delete the data, preventing fraudulent transfers of ownership on a property.
Want To Use Crypto To Buy a House?
If you were one of the lucky investors who took the risk to invest in crypto early on and want to get into a home, we are here to help. The agents at Bob Hill Realty can help you take your profits and invest them in a much less volatile market — real estate. Nobody knows how cryptocurrency will respond to proposed regulations by the government. Still, we do have a pretty good idea of where the real estate market in Upstate South Carolina is headed. Give us a call so we can discuss your goals.