Ninety percent of the world’s millionaires got there because of owning real estate. After all, progress always involves risk.
The world’s most famous cryptocurrency, Bitcoin, has been around for quite some time now. We live in a world where you can make most purchases through Bitcoin. Each day, the system is evolving. Just look at the value of one bitcoin now! Bitcoin has now entered the real estate markets too.
Let’s understand it further.
1. Bitcoin System In A Nutshell
An internet based-decentralized payment system that allows each user to have an undisclosed address allowing them to trace the entire history of transactions. This is all done with the use of Blockchain technology.
Blockchain is a database of its users that is decentralized and shared by each of its community members. This means less threat of attack. Suppose there is an attack on a particular node of the network; the other nodes will then learn and adapt to be prepared for another attack. Like the human body, blockchain nodes can adapt and fight off a “virus” attacking it. The decentralization of the blockchain network allows for cryptocurrency to save itself from hacks and attacks. This makes the system more secure and stable than the banking system we know today.
2. Government’s Taxation On Bitcoin
Within the U.S., The IRS has a stance that Bitcoin is property. Therefore, each transaction is calculated within the capital gains category.
3. Buying Real Estate With Cryptocurrency
As long as two parties within the system agree to make a transaction, bitcoin works. You can use cryptocurrency for pizzas to real estate.
The first transaction for buying real estate with cryptocurrency happened in Austin, Texas. As the seller wanted bitcoins switched to dollars, a payment interface called BitPay was used. As bitcoin’s value keeps fluctuating daily, so the seller, who set the amount in fiat money was benefited in this particular transaction.
The benefit of buying real estate through cryptocurrency is that you can make the transaction in a matter of 10 minutes to a day, depending on the traffic congestion of the network. But best of all is that you don’t have to go through the banking system. Another benefit is that you can make the payment to the owner, your realtor, or anyone else involved at the same time.
As long as both parties agree and use bitcoin, that’s all that is necessary to make a bitcoin property purchase. Bitcoin purchases can help diversify your portfolios. A great benefit is that there is no upper limit when it comes to transactions using bitcoin. That means you can even make $10 Mil. transaction in just 10 minutes.
The benefits of bitcoin also have a tiny caveat. Bitcoin transactions are irreversible. This means that you need to have a certain amount of trust in the person you’re making the transaction with.
All this being said, if you are looking to buy real estate with cryptocurrency, as long as you are prudent and trust the other party, you can even buy yourself a vineyard from Napa Valley using your favorite cryptocurrency, bitcoin.