According to some in the real estate industry, bitcoin is the next development on the horizon. While it’s use is still in its infancy, the real estate industry is slowly adopting the cryptocurrency.
Bitcoin is backed by digital technology called Blockchain, “a digital ledger that records the details of the transaction but doesn’t include personal information,” according to Real Estate Insider. Such technology can be used for recording and transferring property titles and buying real estate, among many other practices.
“And some real estate companies are beginning to experiment with using cryptocurrencies for such things as rental payments …,” notes CRS (The Council of Residential Specialists) magazine.
Colorado’s The Group, Inc. reports that they recently represented a buyer in a bitcoin transaction involving a home in the Fort Collins area valued at more than $1 million. It is “what is believed to be the first residential sale involving Bitcoin in Northern Colorado,” notes The Group. “The bitcoin-to-dollars deal was a speedy transaction facilitated by the title company and structured to minimize tax implications.”
Real Estate Insider acknowledges that bitcoin is a volatile currency, with sudden value swings. Still, it notes, “A knowledgeable real estate broker can put buyers and sellers at ease with a well-crafted contract that allows either side to call off the deal if the prices swing too high or too low before closing.”
In that case, there’s always cash.
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