How Bitcoin Could Transform the Real Estate Sector
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Are you wondering whether Bitcoin could transform the real estate sector? If so, here's how this digital asset can change the real estate sector.
Bitcoin has gained massive global adoption and popularity in the last thirteen years that it has been around. Countries like El Salvador and the Central African Republic have already made this electronic currency a legal tender. Also, well-established businesses like PayPal, Starbucks, and Microsoft have incorporated this digital asset into their payment systems. And due to the increased adoption of this virtual asset, there is a higher chance that it is the future of money. Furthermore, if you are thinking about future earnings, you may start bitcoin trading by using a reliable trading platform like Immediate Edge
The rise of this digital asset could mean a few things for several industries, such as banking and real estate. This article explains how this virtual asset will transform the real estate sector.
These electronic money transactions are less costly and more secure and transparent, leading to increased interest in real estate investment opportunities. Moreover, if you cannot afford to purchase a whole unit of this digital money, there is a chance of buying a division of the currency. This electronic currency allows fractional ownership. Fractional ownership is when sellers can sell shares of this digital currency to more than one buyer. Fractional ownership is more popular due to the lower upfront costs required and the at which a person can purchase a property.
Bitcoin has an inbuilt infrastructure known as blockchain that helps validate and record transactions. Blockchain technology is a public distributed ledger that records transactions transparently. This transparency of this electronic asset allows crowdfunding, where many people can pool their funds to invest in a property.
Also, Bitcoin is decentralized; hence no government can manipulate or regulate the currency. Therefore, the Bitcoin network helps manage risks effectively. Also, this electronic currency opens up opportunities for the unbanked population. People from underdeveloped countries who cannot access banks can use Bitcoin to acquire property.
Absence of Third-Parties
When purchasing a property, traditionally, there is the involvement of banks, realtors, lawyers, and a lot more which can be costly and time-consuming. However, this electronic currency removes all these middlemen leaving the buyer and seller only.
Getting rid of third parties helps buyers and sellers to save a lot of money they would have spent on realtors and lawyers. Eventually, property buyers and sellers enjoy more financial freedom.
Better Market Transparency
Bitcoin has a decentralized system meaning that banks or governments cannot manipulate the system. Additionally, blockchain technology records all transactions publicly. Therefore, information regarding all these digital currency holders is available to others and stored securely.
All Bitcoin transactions are public hence increasing market transparency. Also, it is not only this digital money holders' information that is readily available. Instead, properties effectively have their identities within the Bitcoin network, and their entire chain of ownership and financial history is accessible. Therefore, if a buyer and seller transact today, details regarding the transaction are recorded publicly, increasing trust among people.
Also, with blockchain technology helping to verify transactions instantly and people being able to access transaction histories, Bitcoin holders can feel confident when conducting their transactions. Transparency and trust in the Bitcoin system contribute significantly to this virtual asset impacting the real estate market.
The Bottom Line
Despite this digital currency being in its infancy, it has proven that it can be a medium of exchange and a store of value. Also, Bitcoin presents many benefits to the real estate sector, as seen above. These include enhancing the management of the rental real estate and tenant relations, home sales, and investments. Therefore, Bitcoin is here to stay, so players in the real estate sector should consider embracing it to exploit its full potential.