Cryptocurrencies have made a special place in our lives since their advent. Nobody expected cryptos to take over the market in this brief period, and the majority of the people are looking forward to getting associated with it. Fascinating! With the advancement in technology and the nature of cryptocurrency, people are adapting to their day-to-day chores. From doing business to paying for groceries, bitcoin is slowly becoming a local currency.
And in this race of adapting bitcoins, the real estate business is not running behind. For those still unaware of the crypto world, a cryptocurrency is a digital payment entity that serves like real money. It is a virtual currency and is easily purchasable on various apps and websites. But the real question is whether or not the two worlds of real estate and cryptocurrency can work together?
Well, there is no definite answer to it. In simple, yes and no terms, the answer is both. Yes, it is possible to buy and sell real estate with bitcoin; and No, it is not possible to transact real estate using crypto. It is a complicated affair. Visit this site to help yourself with the crypto domain.
Why the Clash?
Firstly, real estate and cryptocurrency have a common denominator: they are investment entities. One who deals in either of the two is out there to make more money. So, from that perspective, the two can easily co-exist. But cryptocurrency is still not considered a legit entity by the government and IRS, which restricts its usage in a government-controlled institution of real estate.
The anonymity of the person dealing in bitcoins is what concerns authorities the most. You get a unique identification number when you start your bitcoin journey, and it is that unique identification that nobody knows except you. It made bitcoin an instant hit in the market. In the world of privacy concerns, bitcoin delivered it without any hindrance. And perhaps, one of the reasons the government does not stand by it.
But it is not the case. The government has witnessed the power of cryptocurrency and has started amendments to include it as a legit source. As in real estate, the whole system is government-regulated and legit documentation practices while buying or selling any large or small real estate property because the government keeps track of the land utilized and the money traveling with it. The real estate system is obligated to transparency while the virtual crypto world uplifts privacy: the two extreme ends of any business.
Is there a solution?
Yes, definitely. There is a solution as to how to buy real estate using bitcoins. Well, it is possible to purchase and sell real estate using bitcoin and other cryptocurrencies. However, you must be aware of the complexity of the procedure, which includes attorneys, banks, exchanges, and other essential actors. Payment of taxes must not be ignored while performing the transaction because this tax and other related documents will keep the government authorities in control.
Secondly, for a transaction to be successful, both parties need to be on the same side of the line. It means the buyer and seller must agree to deal in bitcoins without any doubts. There are different tax rules and laws for making a deal using digital currency. So, whatever the case, both parties must be aware of the difficulties involved.
The third thing is to look out for other crypto enthusiasts like escrow and insurance firms who would support your idea of dealing in bitcoins. Else, without a common ground, the whole deal will become a mess. Whether you purchased the entity or paid for it, you will be assessed a tax, which must be paid in real money. Do not forget to consider this.
Why the shadow of a doubt?
Honestly, it is common for the general public to have a shadow of a doubt. Whenever a new entity, product, or technology enters the market, people are hesitant about it. They do not easily trust the mechanism of things. The past has shown us to not fall for things that do not make sense to us.
And this time, it is about money. Bitcoins came into our lives in 2009. Money has been around for generations and ages. We have known only one way of believing that we have money is when we can see it from our eyes resting in our hands. No offense, but for many, cryptocurrency is a hard pill to digest.
Secondly, the correct information and knowledge about bitcoin and other cryptocurrencies are still not rigid. The highly volatile nature of crypto still fears the people as they might lose their money. But this is a biased judgment as the same is the stance with real estate. You never know when the rates of properties can slash down to the bare minimum or reach sky-high limits.
Thirdly, it is about finding like-minded people. Just because you believe that skydiving is safe, does not mean that the whole will believe it, too. Even if you find a seller or a buyer who is ready to make the transaction using bitcoins, you will find immense difficulties in finding the insurance and escrow firms with the same mindset. Because the firms are not controlled by individuals, but by a certain group of people who make a cumulative decision on everything.
The Parting Words
So, the answer to the question: Can you Buy and Sell Real Estate with Bitcoin or Cryptos is a definite YES. But it comes with certain conditions. Either take the pain and look out for like-minded people and do your business, or sell off your bitcoins, make cash out of it, and then do the business.
Either way, you are using cryptocurrency in your favor. Perhaps, it will take more time for bitcoins to become a part of our daily lives. Today, everyone walks around with a smartphone in their hand and uses online payment apps; cryptocurrencies will follow suit shortly.