A Guide To The Crypto Rich

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The acceptance of digital currencies like bitcoin (BTC) as a method of payment continues to grow globally. Bitcoin payment providers like BitPay and BTCPay Server make it easier for anyone to purchase a wide range of items, including real estate, with digital currency.

Read on to find out how you can buy a house with Bitcoin.

Contents

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The real estate market is (slowly) embracing bitcoin

The real estate market has taken note of the possibility of using bitcoin and other digital currencies for payments.

For example, in August 2021, the United Wholesale Mortgage announced a plan to start accepting bitcoin payments. While the plan was later scrapped due to high costs and regulatory pressure, it did mean interest in cryptocurrency as a payment method in the real estate market.

This was not the first time that crypto and the real estate sector have converged. In June 2017, perhaps the first-ever known homestead bitcoin sale took place in Texas. According to the broker, Kuper Sotheby’s International, the transaction was processed through BitPay, which converted bitcoin into US dollars. BitPay has also handled other real estate transactions, including the sale of 2,739 BTC ($82 million today and $1.6 million then) of a Lake Tahoe property in 2014.

Currently, many real estate listing sites allow buyers to transact directly and indirectly using digital currency. Sites like Open Listings allow buyers to search for properties that accept crypto-assets like bitcoin and ethereum (ETH).

If you find a seller who is willing to directly accept BTC for their property, you can transfer the bitcoin equivalent of the house price and send it to the seller’s address once the sale is complete and all paperwork is signed. .

However, in crypto-to-crypto real estate transactions, you will have to deal with the volatility and trust of bitcoin between the parties to the transaction.

To ensure payment goes smoothly, it’s best to use an escrow service so that all ownership documents are in your possession before releasing the funds to the seller.

Alternatively, you can buy a house using bitcoins by converting your coins to fiat currency at the time of sale using a crypto payment provider.

Through services like BitPay, buyers and sellers can protect themselves from bitcoin price fluctuations because the digital currency is exchanged for US dollars as soon as payment is made.

The majority of real estate companies that offer properties for sale use a crypto payment provider to accept crypto but receive the funds in fiat currency.

Advantages and disadvantages of buying a house with bitcoin

Let’s take a look at the pros and cons of buying a house using bitcoin.

Advantages

Acquire a more stable asset

The value of bitcoin can fluctuate wildly. Therefore, when you buy a house using bitcoins, you are exchanging a volatile asset for a less volatile asset, which may be the right move for certain types of investors. However, this can backfire if BTC moons again.

Potential discount

If a seller is comfortable with receiving bitcoins, they may offer you a discount. Offering discounts to individuals who pay with bitcoin has become quite common among businesses that accept bitcoin, especially those that actually hold the digital currency on their balance sheets.

The inconvenients

Find a seller

Finding a home seller that accepts cryptocurrency is not an easy task. While some real estate listing sites allow you to filter sellers by adding words such as “bitcoin” to your search parameters, you often need to contact sellers for additional confirmation.

Bitcoin volatility

Bitcoin’s fluctuating price makes it a risky payment option for sellers who may not receive the value they hoped to receive if the price drops sharply soon after a trade. As a result, some sellers who accept digital currencies prefer to receive payments in stablecoins.

If you’ve been lucky enough to have made a nice amount of money from the crypto markets and want to diversify into other assets, spending bitcoin to buy property may be an option for you that doesn’t require not sell your BTC first.
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Learn more:
– A luxury apartment complex in Argentina will offer a bitcoin mining facility for residents
– US borrowers can now use crypto mortgages to buy a home

– Land prices in the metaverse are determined by these five factors, says hedge fund investor
– A house in Florida will be auctioned as an NFT

– Taiwanese buy $15 million condo in New York with Bitcoin
– Spanish Property Experts: Interest in Buying Bitcoin-Powered Homes Is Rising

– More US first-time buyers are selling crypto for a down payment – ​​Survey
– How to buy virtual land in the metaverse: a beginner’s guide

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A Guide To The Crypto Rich


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