Is it possible to buy a house with cryptocurrency?
Over the past decade, the crypto landscape has grown vibrant with a whole lot of opportunities for investors and traders across the globe. The enigmatic digital currency is being steadily adopted for property sales and purchases since it is still under no concrete foundations of regulations. Is it possible to buy a house with cryptocurrency?
Is it possible to buy a house with cryptocurrency?
Even though cryptocurrency is being increasingly used to pay for various products and services, transacting property is still in its infancy. If both parties agree to make a deal involving digital currency, you could buy the property of your choice in the blockchain as well!
Even though the advent of smart contracts and the rising popularity of crypto is making this notion readily realizable, there are still many more issues that need to be dealt with before entering any such agreement.
Optional payment method In the housing market, most sellers are apprehensive about getting into a property sale that involves cryptocurrency. However, by adding it as an optional payment method, the seller can open up the avenues to make a deal much more profitable.
Uninitiated level of concern Especially in case of a bigger payment being made, the digital wallets and crypto face trust concerns. Only a smaller proportion of the traders embrace it with full conviction.
Volatility Even greater than the stocks and mutual funds, crypto markets are subject to massive fluctuations, soaring to the greatest of heights in no time and plummeting below the expectations equally. Lack of any guarantee could be one of the major reasons for a fidgeted seller.
Regional property regulations Decentralized nature of the crypto markets makes them unregulated over most corners of the world. Buyers mostly face the fear of any additional financial, regulatory, or even legal consequences while getting into any property.
Nevertheless, one could follow the following simple steps to ensure a fool-proof deal.
Owning a wallet The cryptocurrency transacted needs to be stored in a wallet of your chosen nature. This would help you make a fair deal at the cryptocurrency exchange agreed upon. There are many platforms that allow trading and storing cryptocurrency, some like Bitcoin era software are a good example of those.
Seller-buyer meeting Many listing platforms have propped up over the past few years listing the available property for those dealing over the blockchain. This further enhances the trust between the two parties. Further, if these deals are made as a result of a personal approach, you could avoid involving an external party in it.
Risk assessment What seems like an easy and convenient deal has many risks associated with it, including the seller’s authenticity and the security of the transaction. You would have to be extremely cautious while assessing the risks and evaluating them for smoother trade.
Market fluctuations The well-known nature of cryptocurrency is its volatility. The market fluctuations might affect your buying power to a great extent.
Government regulations Regional regulations for property might prove to be a bigger challenge. You could get involved in a smart contract available at various platforms and apps in the blockchain, like the one offered by Ethereum and other competent apps. Further, you would need to make sure that there are no financial or regulatory consequences with the deal you make.
Conclusion
Going by the crypto way of making a deal, the system is made fool-proof with enough security, verification, and secured terms for both parties. Additionally, the deal gets blocked in the public ledger system, blockchain, for any future reference in a transparent manner.
Thus, buying and selling property using cryptocurrency seems a very plausible manner of a transaction, it has its own share of challenges and concerns. We hope to see them tide over by the community soon.
Founder Dinis Guarda
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