We’ve witnessed Bitcoin enter the restaurant and retail space, and now it’s time for the real estate market to shake hands with this cryptocurrency too. A lot of real estate deals across the US, whether in Manhattan or in Lake Tahoe, California, are being closed with the help of Bitcoin.
Young Millennials Leaning towards Cryptocurrency
Ben Shoul, president, Magnum Real Estate Group says that the buyer is slowly evolving. They are no longer old moms and dads, but young individuals who are willing to make payments using modern, digital methods. In fact, it is the buyer who has requested for the acceptance of cryptocurrency as a form of payment. Shoul says that when a client wishes to pay using an unconventional method, it becomes vital to offer them the right facilities to do so, particularly in a highly competitive real estate industry.
According to Shoul, the younger population is the key user audience of Bitcoin and other forms of cryptocurrency. However, there are also buyers from various other nations, looking to buy and sell in different forms of currency. It is no longer the case that everyone wants to transact in euros, yen or dollars.
First Bitcoin Real Estate Deal in Austin
But not everybody is comfortable with cryptocurrency as a transactional tool. It was last month that first single-family home was sold in Texas using Bitcoin. The person who bought the house is a tech industry professional and bought the new residential construction in Austin with Bitcoin. The seller, however, is a traditional homebuilder and wanted to convert the currency into dollars while the deal was being finalized.
Sotheby's International Realty was involved in the brokerage of this deal. It made use of BitPay, an international payment service for Bitcoin, which has its headquarters in Atlanta. As per the buyer’s request, the bitcoins were converted into dollars and the deal was finally settled. Since the value of the Bitcoin changes on a daily basis, the entire risk was borne by the buyer.
It is obvious that those who are new to cryptocurrency are still quite nervous about the concept. Both parties involved in the real estate deal in Austin were low-key throughout the transaction duration, offering little information to the public. A lot of the worry might be around the poor regulation around cryptocurrency and minimal understanding about the taxing of Bitcoin gains.