Cryptocurrency is changing the real estate market in many ways. First, cryptocurrency has proved to be a way for people with little or no assets or financial history to invest in property. Additionally, homeowners are taking out mortgages that can be paid back in cryptocurrency. Lastly, cryptocurrency is helping people buy houses in the developing world. If you want to invest in Bitcoin, there are some things you should know first. According to SoFi Invest, “Although most people consider Bitcoin a form of cryptocurrency, there is still a debate about whether Bitcoin is truly a form of money that can be exchanged for goods and services.”
One of the many positive things that cryptocurrency does to the real estate market provides people with new ways to invest. Since 2012, cryptocurrency has been available for investors to divert their funds into something more stable than they would get from stocks or bonds.
How is cryptocurrency changing the real estate market?
Let’s explore how cryptocurrency changes the real estate market in three areas: buying a property with cryptocurrency, mortgaging homes to get crypto, and using cryptocurrency to buy houses in developing countries.
Buying real estate with cryptocurrency
Crypto has changed the real estate market by giving people who don’t always have enough money to invest in property a way to own real estate. In April of this year, a home in Austin, Texas, sold for $400,000 in Bitcoin with no need for a bank loan or even a cash transaction.
A brick-and-mortar business selling the house stated that one Bitcoin was valued at $9,300, and the buyer used Bitcoin instead of USD to buy the house. It is just one example of how cryptocurrency makes it possible for people with less money to own real estate.
Mortgaging your home to get crypto
In addition, people are mortgaging their homes to get cryptocurrency, similar to trading in old books and DVDs at a retail store to get credit. For example, in January of this year, a man mortgaged his home to buy Bitcoin, hoping it would be worth more later. Although he did not break even on the investment, this is an example of crypto as a way for people to invest and make money quickly if they believe in its potential.
Using cryptocurrency to buy houses in developing countries
Lastly, crypto shows up as a way for people looking to buy property but living in countries with weak currencies or strict government rules that keep them from buying international property. For example, BitPremier lists luxury homes worldwide, including mansions on the French Riviera and an English castle. Currently, Bitcoin is the most used cryptocurrency for real estate transactions. In conclusion, crypto is changing the real estate market by giving people who don’t have assets or a solid financial history a way to own property. It’s also being used as a mortgage for buying homes and offering better investment opportunities in countries with weak currencies or government regulations.
As you can see, cryptocurrency is changing the real estate market in many ways. Which of these trends do you think will become more popular and why?
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