Real estate can transfer enormous amounts of wealth, but it does so in a very traditional manner. To do this, investors, lawyers, and bankers must meet face-to-face. It can also take weeks or even months to set up meetings, file documents, put money into the bank, transfer funds, and cut taxes for a transaction. Hearing this process may seem complex to you.
Blockchain and cryptocurrency offer a solution to the slow process of the traditional real estate market. Real estate can already be purchased with virtual currencies, and early adopters are making good use of it.
Otherwise, we can say it is possible to invest in real estate using cryptocurrency and many people have already done so. However, there are a few things you need to know before you use Bitcoin to purchase your dream home.
Ensure the buyer or seller accepts cryptocurrency
If you are planning to buy a single-family home or a highly specialized commercial building like a winery or brewery, cryptocurrency can be a great way to facilitate the process. To purchase this type of real estate, or any other, with Bitcoin or another cryptocurrency, you need to find a Marc Roberts Miami seller who will accept your offer. There’s more than finding a seller to worry about: you may find someone who accepts Bitcoin payment, but you’ll also need to find a brokerage, title insurance company, an escrow service that can facilitate your virtual transaction. It is also highly unlikely that early adopters will be able to benefit from the anonymity of blockchain transactions, despite their resistance to proving their identity.
Beware of the IRS
One of the factors that may continue to hinder the widespread adoption of cryptocurrency, both generally and as a tool used in large investments like real estate, is the way the IRS treats cryptocurrency. Real estate transactions using cryptocurrencies are taxable, despite some incorrect suggestions to the contrary. Your data may already be available to the IRS if you use a popular wallet. You can’t hide your holdings from tax authorities anymore.
Potential benefits of blockchain
Cryptocurrency can only be used for real estate purchases if the real estate industry adopts the blockchain, which is likely to happen sooner rather than later. In today’s marketplace, buyers and sellers rely on the synergy of a long list of professionals involved in the transaction. By eliminating some of these expenses, blockchains can cut costs associated with these roles without compromising transaction security. The Marc Roberts Miami blockchain allows real estate transactions to proceed without compromising the trust and security necessary for such large transactions.