Should You Use Cryptocurrencies to Buy a House?
Unless you’ve been living in a cave for the last year or so, chances are you have heard of cryptocurrencies like Bitcoin, Ethereum and Litecoin. While it can be hard to wrap your mind around the block chain technology that powers these anonymous currencies, one thing is for certain; there is a lot of money in these things.
Fortunes have been made by cryptocurrencies miners, traders and investors especially here in tech centric Silicon Valley. With so much money being generated by these currencies and more people and businesses accepting them as payment it’s no surprise that real estate transactions will start to involve them more frequently.
But should you use cryptocurrencies to buy a house? Let’s take a look.
The Future is Here
When these coins first came into existence many proponents claimed that one day all transactions, from buying a soda to buying a house, would use the new currencies. The thought of financial transactions beyond the control of any 3rdparty like a government or bank is very appealing to many facets of society.
While not everyone is on board, this once theorized future of cryptocurrency use is already here. In 2014 a home site in Lake Tahoewas bought using Bitcoin. Likewise, in 2017 the first single family home was sold in Texas using Bitcoinas the currency.
These are just the well published cases of these transactions. Given the anonymous nature of cryptocurrencies, this has most likely happened a lot more.
The Mechanics of the Sale
In reality, it doesn’t take much for real estate to be bought or sold with cryptocurrencies. In the most basic sense a buyer and seller just need to agree on the currency of the sale. That could be U.S. dollars, Euros, cryptocurrencies or anything else mutually agreed on.
“I have 100 head of cattle, how many you want for that house?”
If, however, both seller and buyer don’t agree then the currency will need to be converted. There are many exchanges where you can turn cryptocurrencies into widely accepted legal tender like dollars. So, if you’re flush with Bitcoin but the buyer isn’t comfortable accepting them, then you can simply turn your Bitcoin into cash and then pay them that cash.
Now, let’s kick this section off by clearly stating that I am notan expert in investing and I am most certainly notgiving you financial advice.
Ok, now that’s out of the way, let’s talk about volatility.
Cryptocurrencies are notoriously volatile. Last year Bitcoin reached $19,800 but dropped to $11,000 in the same month! Yes, you can make some money investing in these currencies, but you can also lose a lot too. Many pundits are fearful that large governments will outlaw or restrict the use of these currencies, which could plummet their value.
So, if you have a lot of money in these currencies that are notorious for sharp spikes and drops, it might make a lot of sense to funnel that investment into something less volatile, like real estate. Yes, real estate can rise and fall as well but we’ve never seen volatility like this in the real estate market.
Have Questions? We Have Answers!
If you’re interested in learning more about completing a real estate transaction using cryptocurrencies then it’s time to chat with Jamec Blue. He has extensive experience with a variety of real estate situations. So, no matter if you’re buying, selling, investing, flipping or anything else Jamec is the person to talk to!
He is a licensed real estate broker and a Realtor that has over $10 million in sales and with a host of happy clients, he’s the real deal. If you have questions, Jamec can answer them!
Give him a call at 510-541-7489 or visit https://calpre.com/today for more information.