Can We Merge Bitcoin and Real Estate and Is it the Future?

Cryptocurrency; the digital currency that underpins the Blockchain and the “new kid on the block” when it comes to investment assets. Like any child pushing at its limitations and restraints, the recent volatility has caused concern amongst some people.

But where some see trouble others see an opportunity. A firm of property developers, GoHomes, recently agreed on the sale of two brand new homes paid for in Cryptocurrency. And this raises a very interesting prospect particularly for some of the original Cryptocurrency miners who have seen huge increases in their ‘wealth’ thanks to all the Cryptocurrency they mined years ago when everyone said they were mad to take payment in something that was worthless.

Buying property using Cryptocurrency or indeed selling to buyers using Cryptocurrency is right at the cutting edge of the process of transferring the ownership of real estate in the UK. But the concept has been proven and the question is is there a future for this type of transaction. Personally, I think so yes. The process is exactly the same up to the point of exchange of contracts; same due diligence, same enquiries, searches, everything the same. The main difference is that contracts are exchanged and completed simultaneously. Equally the solicitors acting for the buyer will have to do a high level of due diligence to confirm the source of funds in keeping with Current AML regulations. This is slightly easier if the client is a Cryptocurrency miner and more complicated if they are a trader but in both cases, all the information is held in The Blockchain.

The sellers for their part need a solicitor who is aware of the pitfalls and drafts a sales contract able to pre-empt these and they must have created a digital wallet within which to receive the sale proceeds.

My feeling is that vendors will be attracted to this market because it is a new marketplace to sell to. Buyers will be tempted by the prospect of exchanging a relatively volatile asset for one that is more traditional, flexible and less volatile.

The danger of Cryptocurrency volatility can be (to an extent) removed by vendors pricing in UK Pound Sterling or Cryptocurrency equivalent. In this way, the buyer is required to cash-in sufficient Cryptocurrency to meet the purchase price and costs. And sellers do have to hold Cryptocurrency. The current weak link in the chain is the cryptocurrency exchange delay between the payment of Cryptocurrency into the digital wallet and the output of sterling to the vendor but this will get resolved in time. Interestingly contracts complete on the payment of Cryptocurrency by the buyer. but the seller does not get their sterling immediately this can be dealt with in the contract.

Make no mistake, cryptocurrency is starting to make inroads as a valid means of payment for real estate. In a relatively short period of time, all the kinks in the process will be resolved. Quantum Property Investments intends to be among the first few to offer its London based property for sale with a sterling marketing price and Cryptocurrency equivalent.

Written by: Doug Morris (CEO) Quantum Property Investments

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website.

You May Also Enjoy

Home and Living

Top 4 Indications That Your Two Story Home is in Need of Pest Control

Have you noticed tiny pests crawling around your home? Pests are more than just a nuisance. They can cause damage and spread diseases. If you live in a two story home, it can be even harder to spot the signs of an infestation. Knowing what to look for is the key. In this guide, we…
Read More
Estate Agent Talk

Matching Your Needs: Choosing The Ideal Residential Property Management Services

Owning residential properties can be an excellent investment, but managing them can quickly become hard. From handling tenant issues to maintenance and rent collection, it’s a time-consuming task. Fortunately, there is a solution—property management services. They can handle these tasks for you, freeing you to focus on other priorities. However, with so many options available,…
Read More
Breaking News

Third of Private Renters Are Struggling to Afford Their Rents Says New Research

Over a third of all private renters are finding it difficult to afford their rent according to new research out today. Whilst overall 35 per cent of renters said they were finding it difficult or very difficult to afford their rent, this proportion increased to 56 per cent for those not in work due to…
Read More
Home and Living

Why Select High-Quality Shower Drains for Stunning Wet Room Design

A wet room is a fully waterproofed bathroom with an open shower area, where the floors and walls are designed to handle water exposure. One of the most important aspects to consider when designing a wet room is your shower drain. With a great range of available designs, homeowners and those in the construction industry…
Read More
Breaking News

Bank of England’s decision to hold the Base Rate – Industry Reaction

The Bank of England held interest rates at 5.25% for the seventh time in a row. The decision comes despite official figures yesterday which revealed inflation had fallen to the Bank’s target of 2% for the first time in nearly three years. Here are some thoughts from the property industry.   Rightmove’s mortgage expert Matt…
Read More
Breaking News

Breaking Property News – 20/06/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   OpenBrix, Home, & TDS unite to digitally upgrade the tenant user experience Full disclosure Adam Pigott and the team at Openbrix are one of my original and long serving clients in my day job of getting proptechs from MVP to exit (Proptech-PR). But as…
Read More