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Trend Watch: The Rise of Cryptocurrency in Real Estate

Updated: Jan 9, 2023

By Alexander Powers

Cryptocurrency in Real Estate

Cryptocurrency is easily one of the biggest economic buzzwords circulating the web. From the recent, weeks-long internet debate over NFTs to the growing popularity and value of Bitcoin and Ether (ETH), the conversation around crypto investments is dynamic and ongoing. It should therefore come as no surprise that the digital currency has made its way into the real estate space—rapidly becoming a norm among high-net-worth buyers.


ETH house in Miami

Late last year, for instance, Brown Harris Stevens agents Keith Marks and Sonia Toth of the Keith and Sonia Team oversaw the sale of a four-bedroom unit at Miami's One Thousand Museum, a luxury condominium designed by Zaha Hadid. The $7.2 million sale was handled almost entirely in ETH, making it the City of Miami's largest cryptocurrency sale to date.


"The buyer made a generous offer based solely on the listing video we created, before ever setting foot in the unit,” said the team.


Among the reasons cryptocurrency has become appealing for real estate transactions is efficiency.


Purchasing a property using crypto can be done almost instantly, much like a Venmo transfer. Transactions made on a blockchain can employ a "smart contract" with specific stipulations such as when the digital currency needs to be converted into the U.S. Dollar. For the Keith and Sonia Team, the transaction was overseen by an attorney and a CPA, and it was agreed the conversion would happen immediately upon closing.


Other perceived advantages include anonymity and security.


Blockchain transactions are nameless. They are also generally safe thanks to their complex cryptography systems. Given that nothing in a blockchain transaction can be changed or altered, crypto transactions can potentially thwart fraud and allow for increased transparency. For real estate transactions, particularly luxury ones, this presents a significant advantage as many buyers and sellers prefer their transactions to be as discreet and secure as possible.


Beyond mere transactions, however, cryptocurrency is rapidly impacting the real estate market through other avenues, including:



With that being said, the full impact of cryptocurrency on real estate has yet to be assessed. There are risks involved, of course, and these can require additional considerations. Given the volatility of cryptocurrency, for instance, the down payment for the One Thousand Museum purchase was made in USD, so as to avoid currency fluctuations. Also, cryptocurrency can be vulnerable to hackers, as well as scammers posing as exchange platforms.


Furthermore, many cryptocurrency exchanges do not have the built-in background screening capabilities that banks and lenders tend to use to determine an individual's source of income. This can open the door to potential fraud or laundering.


As these concerns have been expressed by many, companies such as Milo Safew and RealT have been established to help buyers and sellers avoid fraud and prioritize transparency in the real estate transaction process.


Regardless of the potential risks, however, cryptocurrency is a rapidly growing sphere of our economy and has made an indelible mark in the real estate industry. While the future of the currency in real estate transactions remains uncertain, the possibilities for instantaneous, direct, and secure transactions yield an appeal that is not likely to die down anytime soon.


For up-to-date crypto news and developments, visit Coindesk.com

4 Comments


Accepting crypto payments? It's like adding a special crypto lane to your website's checkout! Following info from https://netizensreport.com/business-payment-api-how-to-choose-and-integrate/ you should pick a crypto processor (BitPay, Coinbase Commerce) - their API acts like instructions for your system to understand crypto payments. When a customer chooses crypto, the API securely talks to the processor, who converts the crypto to your cash (USD, EUR) and deducts fees. You then get the equivalent amount in your bank. Benefits? Security (processors prioritize it), convenience (no crypto complexities for you), and a wider customer base (crypto lovers!). Just remember fees and that not all cryptos might be accepted. This API basically bridges your website/app to the crypto world, letting you accept crypto payments smoothly.

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As blockchain technology continues to revolutionize industries, including real estate, Zert is at the forefront, providing secure, instant, and accessible solutions for cryptocurrency transactions. Our platform's mission to democratize finance aligns perfectly with this trend, offering users the ability to engage in real estate transactions from the comfort of their homes or offices. Join us in embracing this exciting evolution as we pave the way for a new era of digital asset transactions.

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Paul
Paul
Oct 12, 2023

The burgeoning integration of cryptocurrency into the real estate sector opens a novel frontier for cryptocurrency trading, intertwining digital assets with tangible property investment. This union could reshape strategies for traders, presenting new opportunities and challenges in managing and diversifying investment portfolios while navigating the complexities inherent in both trading and real estate transactions. An exciting development to observe in the evolving investment landscape!

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