Influence Of Cryptocurrency On The Real Estate Market
Though the adoption of cryptocurrency in the real estate business happens quite slowly, it still managed to make a great contribution by improving homeownership accessibility and making the home-buying process shorter. What other changes can you expect to see in the real estate business due to mass crypto adoption? Let's find out now.
Only a small number of realtors have already appreciated the comfort and possibilities offered by blockchain technology and crypto transactions to people working in this industry. The majority still consider NFTs, different assets, and the blockchain a novelty and know little about this sphere, but there are lots of examples when homes have already been sold and purchased for cryptocurrency. It guaranteed a seamless transparent experience when all stages of the process from the appraisal to making an offer were completed online. The National Association of Realtors has already created a Cryptocurrency Presidential Advisory Group which researches how this innovative technology influences the real estate field and in what way people working in this industry can benefit from it.
One of the latest solutions introduced was the development of the Propy transaction platform that has already completed real estate transactions on the blockchain for the amount of over $4 billion.
Basics of cryptocurrency and blockchain
It's not surprising to see digital money in the modern tech era, but how does cryptocurrency differ from other examples of financial transactions? The answer lies behind the blockchain technology created with the goal to enhance, protect, and automate transactions made. Let's look at the basic terms and their definitions.
Cryptocurrency is a digital form of money that exists in virtual wallets and can be processed in transactions through a decentralized system that uses encrypted databases. All such transactions are conducted online and this money is characterized by the absence of tangibility too. Nowadays, the most popular coins like Bitcoin, Ethereum, Litecoin, Dogecoin, Ripple, and others are used as a form of payment in the stores that accept crypto and even to purchase properties too.
Blockchain is a decentralized unchangeable ledger that makes records of all transactions and keeps track of the token movement by doing so. A person who decides to buy an asset no matter whether this is a car or home submits a transaction through the blockchain transforming a cryptocurrency used in a block added to the general chain of transactions.
NFTs are translated as non-fungible tokens and are defined as exclusive assets that represent artwork, real estate, music, video and other uniqie things stored on the blockchain.
Why cryptocurrency gets more popular in real estate
Traditional transactions that take place in the real estate business take much time and are not fully protected from fraudsters. Therefore, it is important to find a more convenient, safer, and faster way of processing money for everyone.
Only a couple of years ago, experts in this sphere couldn't even think that fintech can be a solution and it can be introduced so quickly. Blockchain tech and cryptocurrency made it possible to buy homes making only a couple of clicks. Such transactions are not subjected to background and credit checks, so they take less than a minute to be completed. Some people refuse to make crypto transactions because of the volatility of some coins, but experts have their advice for such clients. There are stablecoins that reduce risks since such token as USDC is tied to the US dollar, for example, that minimizes risks involved.
Who can benefit from getting homeownership using crypto
It is not a secret that not everyone can buy real estate, and the main obstacle for that is background and credit checks. With cryptocurrency, there is no such problem. Crypto holders can take quite impressive loans if they have collateral which is impossible for people with a bad credit score. It is a good solution for those who can't qualify for a traditional mortgage and look for reasonably priced rates.
How to learn about blockchain sales
Everything new always seems scary, but if you learn more about crypto and blockchain, you can understand their unmatched benefits. There are even online courses for certified agents who want to extend their knowledge in this sphere as well as lots of traditional websites that inform about this technology on an everyday basis.
According to professionals who have already understood the value of the blockchain and crypto, it is the future of real estate transactions that will change the world and the way people obtain property. They compare cryptocurrency with the Internet that made a revolution, so we can expect another breakthrough in the finances too.