How Bitcoin Is Going To Impact US Real Estate Market

A report by real estate firm, Redfin, indicates that as many as 75 properties in South Florida have listed bitcoin as their preferred mode of payment. Douglas Elliman brokerage CEO, Jay Parker, says he won’t be surprised to see hundreds of real estate transactions in bitcoin this year.

Acceptance of bitcoin on real estate industry does not come as a surprise, given that the cryptocurrency is already sending shockwaves in in retail and restaurants industry. However, its usage continues to arouse concerns given the levels of volatility that consistently affects its valuation. Liquidating the digital currency immediately after a transaction is usually a safe play, given that its price can swing either way

Some governments restrict the amount of money that their citizens can transfer abroad through the normal banking system. Bitcoin usage in the U.S real estate industry should thus continue to grow as foreign investors look for ways to circumvent the tight and inefficient currency controls.

Bitcoin bypasses such restrictions as it is not regulated by any central body and has a standard value all over the world. The cryptocurrency has also emerged as a sure way of bypassing U.S sanctions imposed on some countries.

Venezuela is one of the countries that is feeling the full effects of Washington sanctions. However, investors from the country are increasingly investing in Florida real estate properties by relying on bitcoin to settle transactions.

Some real estate agents have started to accept bitcoin payments as a way of gaining a competitive edge against their peers. According to Magnum Real Restate Group President, Ben Shaoul, there is a lot of inventory in the market which calls for new and innovative ways if one is to ink more deals.

“I think the demographic of the crypto user is a younger millennial, but, that being said, you have a lot of people come over from other countries, who are buyers from different places, who like to trade in different types of currency. Not everyone wants to trade in dollars or yen or euros," Shaoul said.

Bitcoin is also helping tackle the problem of money laundering in the real estate business. Because all transactions are recorded in a public ledger, it is impossible for people to launder money without being noticed given the trail that is left behind.