It’s an interesting phenomenon, using a cryptocurrency, or ‘digital’ currency to purchase a property. I am always interested in new innovations and new trends and wanted to share my thoughts on whether Bitcoin should be one to watch in the real estate market. It has certainly fascinated me, and my initial thoughts are that I like the idea of it, and the application into real estate intrigues me. If you haven’t looked into Bitcoin or don’t know how it could apply to real estate, keep reading.
Bitcoin is one of many digital currencies that allow you to make transactions online, without the need for a bank. A digital coin is actually just a file or a piece of code, it does not take on a physical form. A peer to peer networked program allows you to trade and buy bitcoins without a central authority. What initially had inhibited the world of digital currencies has now been overcome by the blockchain, which is a public registry of all the transactions ever made with a digital coin and who owns which coin. Currently, one bitcoin is worth $14,002 Australian dollars and the value of bitcoin has raised steadily since 2014.
Australian Vendors are now accepting BitCoin
Recently, there have been several vendors across Australia that are accepting bitcoin as payment for their property. These vendors are typically educated in bitcoin and deal in the currency but it would be interesting to see if the general community members start to embrace this new currency. The appeal in selling a house for bitcoins lies in the fact that the price increase has increased dramatically, any return on a large bitcoin investment would be reasonably substantial at the current rate. However, it is volatile and is subject to change without notice.
As purchasing property is a form of investment itself, the use of valuable cryptocurrencies to pay for property is risky but could pay off handsomely. Speak to your Financial Advisor for tailored information on your personal circumstances. If you have questions about the real estate world or buying and selling, don’t hesitate to reach out to me on 0423 144 102.