Blockchain And Real Estate: 4 Ways The Tech Is Changing Property

 

Blockchain technology was invented a decade ago, in 2008, by a person or group of people with an unknown identity. It is making its presence felt across the globe in all the fields, of which real estate is one.

In this article will be examining how blockchain property and real estate can work together to generate value for consumers, investors, developers, the whole industry in general.

There are many ways cryptocurrencies can affect the real world, including cryptocurrency-based loans, real estate investments, Bitcoin investing, etc. Let’s see what we need to know about these products:

1) Crypto loan: 

Image by Petre Barlea from Pixabay 

This type of money can be used by homebuyers for financing their purchase of an apartment, house, condo, car, investment of any other asset such as stocks. When using crypto loans, users pay a small amount of cryptocurrency, then they receive funds based on that currency. So how are the funds intended to acquire assets? Cryptographic coins (crypto coins) are “mined”, the process of mining means creating new coins from unallocated crypto coins. These miners have no known owners, so it means that you can mine them without giving them any funds. Once the coin has been mined, the same process repeats to get more coins, until the full amount has been obtained. That fund is given back to the user through crypto lending. As in crypto loans, the interest rates can vary depending upon one’s credit score, but there are also a few plans like fixed-rate products, variable rate plans for short term investments, for short term projects.

2) Investing in real estate:

 Now that crypto lending is done, let’s start talking about real estate investments. In order to invest in properties, users need to hold tokens in their accounts. They should not deposit money directly; instead they use some services where the company will offer to buy or sell them. Investors in this category might find out if the broker is reliable, or if someone else thinks of buying or selling the properties and who is responsible for those transactions, and whether the investment is worthwhile. The main advantage is that this is a more passive and safe way to invest. If the price swings too much, most likely they will not be profitable, no matter how much a brokerage firm makes.

3) Buying property via auction: 

Auctions are a great tool to do so. Usually, there will always be at least one bidder trying to bid on every particular property. Most people prefer to check several websites before deciding. One great example would be eBay, which lets you post a picture of your desired property online and then ask users for bids. You will find thousands of different listings to choose from. Another way is Bitbidder, another service that offers free listing on public websites and allows clients to register via phone or mail. However, this platform is for freelancers only.

4) Bitcoin investing: 

Finally, let’s talk about Bitcoins. Bitcoin is certainly one of the most popular cryptocurrencies, but it does not mean it has no place in the real world. Many banks have started accepting it as payment method. Some exchanges like Gemini allow users to deposit their bitcoins and then use their dollars when buying something, such as using Bitcoin for a mortgage. We already mentioned that some companies have become very successful offering up mortgages on bitcoin. All this while staying transparent. Since the beginning the cryptocurrency market in 2008, with almost 500x growth, there was nobody in the world who had heard about this currency. Since then, its popularity rapidly rose. Today, approximately 1% of the global population uses this cryptocurrency, according to CoinGecko. But it is still nowhere near mainstream. The best thing about bitcoin is that it can act as a store of your wealth, since it is stored in a single point where nobody knows how much it actually is. Furthermore, you only need to keep it under 24 hours if you want to withdraw it. Therefore, it is a very safe and reliable investment option.

With all these advantages, Bitcoin as an investment can do wonders. From trading your money to getting funds for your business. So to conclude, even though cryptocurrency will never replace property in our lives, but only the markets will change. What will make a huge difference to my future will be if I’ll use these three categories of products together. For now, I can say that real estate is doing fine, with no doubt because cryptocurrencies seem to perform better than this. With that being said, if I were to try going into digital assets, I think I would stay away for a little bit than just sitting on my computer looking at a website. To sum up, in order to have all these advantages without sacrificing anything, I would definitely rather use currencies to buy real estate instead of simply investing in properties and then hoping for profits.