New singer Emily Armstrong and drummer Colin Brittain join line-up as group reveals new album 'From Zero' and world tour
Many large companies across different industries accept Bitcoin as a legitimate source of payment; the real estate industry couldn't stay away from it. Sellers are broadening their buyers' pool by accepting Bitcoin as a payment method and to get increased exposure.
We see properties in New York, Miami, Melbourne and other major cities listed with the price in Bitcoin. There are some websites that list properties for sale only with this mode of payment.
Some developers in Dubai are advertising the acceptance of Bitcoin for their new projects. This is just the starting and it sounds a bit early to say if the acceptance will spread or decline. Before cryptocurrency is embraced as a common and trusted method of payment, concerns of regulation need to be resolved. There is also a lack of information about how it works and a growing stigma caused by massive price fluctuations and news of price crashes.
Risk
Accepting crypto for real estate is minimum risk to the seller if the currency is immediately liquidated to avoid massive and immediate fluctuations or a market crash. In January 2018, there were a number of major fluctuations where the price plummeted to less than half.
Lack of regulation
One challenge for real estate developers to accept crypto payments is the lack of regulation and integration with escrow accounts. Keeping accounts of something that may completely disappear or be banned anytime is also a challenge. For buyers seeking mortgage from traditional lenders, cryptocurrency is not yet accepted as a down payment.
Advantages
Cryptocurrency has its admirers and haters, while some investment moguls say it will soon have a sad ending, others are trying to make agreements with giant companies to start accepting them as legal tender. The fact remains that the technology (blockchain) behind cryptocurrency can solve major problems and can make buying and selling real estate a frictionless experience. Transferring large sums of money is faster and cheaper with crypto and it can open new doors and make the flat world even flatter.
Tax
We live in world where we pay taxes for products and services. While making payments with a currency that is not regulated, there is no way to charge tax on it. This is a major hindrance for all industries, including real estate.
Let's put everything in a Swot analysis to see if cryptocurrency is ready for prime time in the real estate sector.
Strengths
. Seamless global trnsactions
. Less transfer fees
. Security: As it's powered by blockchain
Immediate settlement
Weaknesses
. Hardware malfunction: Wallets can crash; exchanges can be hacked
. Volatility
. Reputation
. Lack of understanding on tax
Opportunities
. Fractional ownership of residential real estate
. Creation of a more transparent ecosystem with smart contracts
Threats
. Rapid changes in technology
. Change in government rules
. Massive price fluctuations
As the world moves towards a cashless society, crypto seem to be the future of currency. Governments globally have started taking this seriously and are acting in favour or against it. There is a lot of debate across all industries whether crypto will change the financial ecosystem and get into our daily lives. There is, however, a lot of work to be done and problems to be solved.
The writer is online marketing manager at Aston Pearl Real Estate. Views expressed are his own and do not reflect the newspaper's policy.
New singer Emily Armstrong and drummer Colin Brittain join line-up as group reveals new album 'From Zero' and world tour
The Group was highlighted for its strength in investor relations, and was one of only six companies in the UAE to receive the distinction
Sharaf DG is gearing up to create innovative intersections for brands and partners to collaborate, launch products and scale existing product experiences
He has held senior roles driving revenue growth at several global media brands
Victory for either side at the Oval would be a boost to their hopes of qualifying for next year's World Test Championship final at Lord's
Starting from June 2, 2025, the country's flagship carrier will launch four weekly flights
Distracted driving is a serious traffic offence in the country punishable by an Dh800 fine and four black points
He gently warned people to maintain a safe distance as he moved through the crowd