REAL ESTATE WORLD OPERATIONS COULD INCLUDE CRYPTOCURRENCIES
It is important to remember that Bitcoin is the most popular cryptocurrency today; therefore, it is the one that is commonly used to carry out transactions. However, it should also be noted that there are multiple projects for other cryptos to be adopted, such as Ethereum, Ripple, CRO tokens, or Binance Coin.
Real estate market & cryptos
According to some analysts, the possibility of carrying out transactions with cryptocurrencies, like Bitcoin, represents an advantage for many countries.
Since this would allow opening the real estate market to all people who own cryptos, whether you are American or European or from anywhere in the world, functioning as a universal currency.
However, there are also risks to consider, one of the most important, and it is none other than the instability of cryptocurrencies. One day, Bitcoin is 10% more expensive, and at the end of the day, it loses 20% of its value. This phenomenon would mainly affect the prices and income of real estate companies.
On the other hand, operations with cryptocurrencies are not within the laws of Leasing or Against Real Estate Scams, a situation that has led to activities of this type being kept private.
Citizens take advantage of investing in the construction sector
Blockchain technology has opened the possibility that private citizens can take advantage of their savings in the construction sector through tokenization.
Tokenization links an economic right to an asset, a property, or a work of art through a digital token, known as a token, through a blockchain registry. That token gives the investor rights over that good similar to those of a company share.
Tokenization allows converting any physical asset into digital (tokens) transferable securely and transparently.
Unlike traditional real estate investments, investors can sell their tokens at any time, even before expiration, on digital markets.
One of the advantages of tokens is liquidity. We can make our investment liquid whenever we want, without a buyer.
Payment methods used for the purchase of properties
Many countries already have laws against transactions with cryptocurrencies, but most seek control over these without the need to limit or prohibit them.
In Latin America, countries such as Colombia and Venezuela have more flexible laws regarding the payment methods used to purchase a movable and immovable property.
Since the launch of the PETRO project, a cryptocurrency created by the Venezuelan government to secure and control foreign exchange transactions Buying a property with Bitcoin, in theory, is not complicated since it is based on trade as simple as a transfer of funds from one electronic wallet to another.
The fundamental problem of these transactions is determining the origin funds from which the buyer is acquiring the property.
Since although it is indeed a SUPER SECURE transaction it must be taken into account that the process of obtaining the cryptocurrency is not controlled by any government or banking institution.
That is why before real estate operations with BTC, it could be necessary for the buyer to clarify the origin of the amount paid in cryptocurrencies.
The uncertainty and ignorance of this market mean that, in general, the sellers who accept this type of currencies are significant investors in the field of cryptocurrencies, which is why they almost always come out ahead.
In countries like Spain, once the buyer and the seller are willing to make the transaction through cryptocurrencies, the acquisition must be registered in euros.
This happens due to the instability and lack of legal support in this type of financial operation; in addition, in this country mentioned above, they consider it convenient to set an exact amount in which the transaction will be made before a notary.
They are regular purchase and sale procedures before the registries or notaries, with the only difference that, at the agreed time, the value of the cryptocurrency is translated, in this case, to euros to be able to legally deed the property.
The problem with bitcoins in these cases is that being decentralized, you cannot in any way deed the property in cryptocurrencies but always in currencies linked to a central bank.
Communication between the real estate market and the growing perception of Bitcoin as a store of value may indicate that housing and Bitcoin will have an excellent long-term relationship.