Buying a Home with Cryptocurrency

Posted by reside360 Team on Wednesday, January 10th, 2018 at 10:45am.

 

It seems like you can’t blink without hearing something new on cryptocurrencies like Bitcoin and its potential. Bitcoin is now slowly infiltrating into the real estate market as well, which is notorious for some of its more antiquated practices. Yet, purchases in Austin and Manhattan were brokered with Bitcoin as the sole source of currency.

Some real estate agencies across the US are becoming more open to accepting cryptocurrency for purchasing a home, as well as agents accepting it as their commission. In areas where the real estate market is slow brokerages hope cryptocurrency is the answer to giving their firm more of an edge by offering different purchasing options. They are taking note from foreign markets that already accept cryptocurrency in real estate as common practice.

Purchasing in cryptocurrency puts the burden of risk on the buyer, opposed to the seller. Due to the fluctuating nature of cryptocurrency’s worth, a buyer may purchase a home at a fixed US dollar amount, and the amount of cryptocurrency used to equate to the fixed US dollar amount may change over time, but the seller has the option to convert the cryptocurrency to the dollar amount agreed upon. If the worth of the cryptocurrency appreciates, then it’s as if the buyer overpaid.

The easiest way to think of using cryptocurrency to purchase real estate is to equate it with selling stock to afford a home. The stock has a given worth one day, but a week later that amount could change. However, unlike stocks, cryptocurrency’s value has been trending steadily upward, and stabilizing, thus making it more desirable.

Only time will tell how widely accepted cryptocurrency will become as businesses across the globe catch up to this pioneering form of payment. Perhaps by this time next year buying your eggs and a gallon of milk with cryptocurrency will be the norm. The possibilities are limitless. 

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