The way Blockchain has disrupted financial services all over the globe with its widespread application in numerous industries, it’s hard to find one segment that has not been influenced by the technology. Real estate is among the sectors influenced by it.
The Initial Coin Offerings (ICOs) have changed the landscape of real estate with stock investing, startup loans and venture capitals associated with crypto. In this blog, we will walk you through how various cryptocurrencies like Bitcoin, USDT, Ethereum, and Ripple have modified the game of real estate.
Use of Crypto in Real Estate
The disruption in various industries that have been caused by Blockchain did not leave real estate intact either. Previously the norm was to transact high-value assets through digital channels and face-to-face engagements. However, the pandemic led to modifications with drones being used, meetings and virtual tours, and Blockchain taking the cake.
Through the technology, real estate ventures got completely modified with smart contracts allowing assets like real estate to be tokenized and traded. The cryptocurrencies that are most commonly being used in doing so include Bitcoin and Ether.
Automated Transactions with Blockchain
One of the many ways through which Blockchain has modified the world of real estate includes automated transactions. The technology aims to provide speed and safety from frauds that may occur in typical exchanges. Blockchain simplifies the transmission of data during preliminary sales agreements and the deed of sale before the notary, thereby reducing time and integrating innovation.
You should know that the automation of real estate transactions is way beyond the project stage now. The innovation can come in extremely handy in places where corruption and lack of transparency usually raise the issue in terms of land ownership. Through Blockchain, the status of the property, deeds, and a history of the property or land can be achieved. Moreover, Blockchain is not limited to banks, real estate agencies, buyers or even sellers.
Real Estate Smart Contracts
One of the significant features of Blockchain is that it is fast and secure. Based on its unparalleled speed, the technology offers smart contracts between properties trading real estate without any third party involved. Practically speaking, the majority of smart contracts use automation of value exchanges in the form of virtual currencies known as crypto assets.
These digitalized contracts are equal in value to paper contracts and allow parties to secure their information without chances of modification. Every accounting entry is recorded in the Blockchain, allowing for the transfer to be visible and immutable. Contrary to everyday transactions with these contracts, there is no chance of misinterpretation or doubt.
Real Estate Fundraising
Entrepreneurs in the real estate market are incorporating digital currencies in real estate transactions by creating new currencies and tokens. These facilitate buying, renting, trading and even investing in real estate without the traditional transaction method. You can compare this to buying shares in a company that has a real estate property.
A home listing with Bitcoin
Another tangible use of cryptocurrencies, specifically bitcoin, has been home listing. Many sellers and agents have used Bitcoin as an incentive for buzz and attention around properties. In the real estate market, you can now find some sellers explicitly asking for the payment through Bitcoin. In contrast, others ask the price to be split between USD and Bitcoin.
This works exceptionally well for real estate house listings that are high end in nature. The buyers of these houses may very well have Bitcoin they would like to utilize in real estate. Moreover, real estate serves as a tangible asset, and many have enjoyed a high with Bitcoin. Converting it and Investing in real estate seems like a lucrative opportunity.
Benefits of Crypto in Real Estate
There are numerous benefits associated with buying real estate property using cryptocurrency. These include;
- Privacy in buying property
- Smooth transactions internationally and in-state
- Ample liquidity
- Lesser cost of real estate transaction
- Finding a balance between Brick and Mortar with Bitcoin
To conclude,
Cryptocurrencies have made a mark on payments, remittances and foreign exchange services. One of these services, namely one of the most eminent industries, is Real Estate. The potential benefits are high, but risks tend to exist as well. However, The market is still developing, and the ground is ready for more play. Safe Investing!
