Cryptocurrency: advantages for payment in the real estate market
Since its development, a little over 10 years ago, cryptocurrency has been actively integrated into life. And if before the implementation of transactions with digital money was quite limited, now cryptocurrency is available for almost any market, including real estate. In a number of countries, it is possible to buy an apartment or a house without any problems by paying with cryptocurrency.
The first digital money transaction in the real estate market was recorded in 2013 in Canada. Since then, many countries have legally approved such transactions, and investors actively conduct transactions using cryptocurrencies.
The main advantage of digital money for buying real estate is the speed of the transaction. There is no need to transfer funds from one bank to another, the process is easy and hassle-free. Another positive feature of paying in cryptocurrency for the seller and the buyer is the ability to reduce the number of tax fees. In the case of fiat money, the burden increases several times.
It is also profitable for developers to sell real estate for cryptocurrency. In this case, they can tokenize the asset or divide it into several digital shares. Such a step will make it possible to speed up the procedure for selling objects, and buyers will be able to invest in real estate under construction, even if they have little capital. In addition, there is no need for currency conversion and drawing up a lot of different documents.
Another important point is considered to be confidentiality. Transaction data via cryptocurrency is not disclosed, and you can count on a high level of protection of all the information. The transaction fee is no more than 1% of the amount.
It is convenient to purchase foreign real estate using digital money. In this case, there is no need to pay extra money for the transfer or go through a long bureaucratic chain.
It should also be noted that cryptocurrency is not afraid of devaluation, unlike fiat money. Many people are afraid of cryptocurrency instability, but if you invest in it and buy real estate, then you can avoid losses due to exchange rate fluctuations.
A number of countries fully support the purchase of real estate for cryptocurrency, canceling standard fees and VAT for such transactions. Moreover, it is possible to use digital money to participate in investment programs for obtaining a residence permit.
Despite many advantages of cryptocurrency, transactions with it have disadvantages. For example, its exchange rate can change quickly and can differ significantly from the day of the transaction and at the time of the transaction. In addition, one should consider the volatility to which digital money is exposed.