With cryptocurrencies rising in popularity, it seems only natural that many sellers are now accepting bitcoin transactions from property buyers. In fact, the next-gen currency is being widely used for both commercial and residential properties. Plus, landlords up and down the country are also starting to accept bitcoin rent payments from their tenants.
Keep reading to learn more about bitcoin and how it is affecting the real estate industry.
The Use of Bitcoin in Other Industries
Bitcoin might seem like a minefield for many property buyers and sellers, as the currency is new to the market. Yet, it may soon become a standard payment option, as many other industries are accepting the currency for their products and services.
For example, the likes of Subway and KFC are currently accepting bitcoin payments in selected franchises. While Expedia, the biggest online travel agency in the world, now allows vacationers to pay for a hotel room using bitcoin.
Many people have been cautious of bitcoin, as they may view it as a financial risk. Despite its past volatility, it has increased in stability in recent years, and it has also skyrocketed in value. While it might take a number of years for it to become a primary payment method for property transactions, the US has already begun introducing laws to regulate many cryptocurrencies, such as bitcoin, effectively.
As the global real estate industry is reportedly worth $217 trillion, and the value of bitcoin is currently soaring, it makes perfect sense that more residential and commercial property investors will be adopting the next-gen currency and abandoning traditional payment methods.
A Higher Level of Security
Another benefit of bitcoin is the anonymity it provides, which is ideal for those embarking on a large-scale real estate transaction. In fact, the higher level of security rivals most financial systems, which is why many people are turning to the next-gen currency over using paper-based money. It could, however, prove challenging to run a credit check on a bitcoin buyer. Regardless of your chosen payment method, it is essential to seek legal advice regarding commercial property law.
A Seller Advantage
Bitcoin is not only benefiting buyers, as many sellers are also enjoying the fruits of the cryptocurrency. As it can take a great deal of time to accumulate a considerable amount of bitcoin, real estate is serving as a hassle-free way for people to receive a large amount of the digital currency in a quick, hassle-free manner. Plus, the value could potentially increase by many hundred thousand dollars in time so that it could be a greater investment opportunity than real estate.
A Faster Real Estate Closing
Bitcoin can lead to faster, more reliable real estate transactions. As it is simple to gain access to the financial information, and property titles will remain safe within the blockchain, it could lead to quicker title and mortgage processes. As a result, the real estate closing will be much faster in comparison to the traditional method.