Crypto Is Being Used In Real Estate?
Did you know that the real estate industry is starting to turn to crypto? It might seem a little weird when you first hear it, but there’s a lot of benefits in it for real estate as a whole. It gets even weirder, though, when you realize these real estate cryptocurrency transactions are not only taking place in the real world, but also in the metaverse.
The most obvious and direct use of cryptocurrency in real estate is simply using your crypto coins to purchase a physical house. It gets much more convoluted than that, with crypto enabling multiple people to own shares in both virtual and real properties, and buy limited digital plots of land in the metaverse.
Crypto also allows real estate to become a more liquid commodity than it ever could be before, as divvying properties up into “tokens” makes it much easier and quicker to sell shares online, as well as attract even more buyers who are intrigued by the decentralized system.
How Is Crypto Helping Real Estate?
There are numerous benefits to using cryptocurrency and the blockchain in real estate, just as there are for many other industries. Dividing properties up into “tokens” that can then be easily bought, sold, and traded, lets real estate be a liquid commodity. It’s usually a much more complicated process, but crypto allows for easy and quick transactions.
Embracing crypto also lets real estate companies have easier and smoother transactions, while avoiding being taxed when transferring the rights to a property. The privacy of blockchain is also another big draw for many. The wider pool of investors, and the access to secondary markets is another reason real estate companies are starting to incorporate crypto in their business operations.
What Are The Cons Of Crypto In Real Estate?
Nothing is without its cons, and crypto in real estate is no exception. One of the scariest cons is hacking. When crypto is involved, hackers are always looking to see what they’re able to hack into and how much crypto they can steal.
While blockchain technology goes a long way in protecting your data and your money, it’s not foolproof, and hacking does occur. If a real estate company’s system is hacked it could result in huge losses.
Second most important of the cons might be the fact that crypto is so volatile. A coin can be worth thousands one day, and nothing the next. Because of this, real estate companies will be taking a gamble every single time they receive payment in the form of crypto.
Real estate companies also make themselves subject to future laws and regulations involving crypto once they start using it.
In Summary
As more industries embrace cryptocurrency and blockchain technology, the way their businesses are run will have to change. While there are many benefits, companies need to weigh them carefully against the cons before deciding whether or not crypto is right for them. Being able to purchase a house with cryptocurrency is just the start of what blockchain can offer real estate, and whether or not even more industries jump on the bandwagon is yet to be seen.
Article Link: Crypto Is Being Used In Real Estate?
-----------------------------------------------------------------------------------------------------
Author -