In the past, you couldn't buy much with Bitcoin. It was almost exclusively used as an investment vehicle, with people trading it as an alternative to gold or fiat currency. Bitcoin has come a long way since then, and today even sovereign nations are building bitcoin reserves.
In addition to that, there is now a growing number of places where you can spend Bitcoin, and more and more of them are centered around transactions that make sense - for example, buying food from Whole Foods, booking travel accommodations on Expedia, or paying your electric bill on CoinBase. And now it is even possible to buy real estate using cryptocurrencies, but is it a good idea?
Let's not beat around the bush here. The answer is yes, if you are already invested in the crypto market. If you aren't, the answer may still be yes, but only under a few specific circumstances.
Why Use Cryptocurrency to Buy Real Estate?
Cryptocurrencies like Bitcoin and Ethereum may not be widely accepted in real estate purchases, that doesn't mean they won't ever be. While many real estate experts remain wary of cryptocurrency - they don't trust it because there isn't an actual asset behind it, such as gold ؙ- others are making waves in bitcoin-buying when it comes to home buying.
Some homeowners have even sold their homes for BTC, so if you were looking for ways to spend your cryptocurrency assets rather than just trade them on crypto exchanges and hold onto them in case they go up in value further, why not consider using them to buy your next house? Doing so could help you avoid costly exchange rates or foreign transaction fees when buying overseas, for example.
With Bitcoin, you can buy a home and live a mortgage-free life. However, be careful when dealing with any cryptocurrency as they are quite volatile and may even cost you your house if they lose value. If the worst happens, you can visit Favor Home Solutions to learn how to sell a house that's in foreclosure in Charlotte.
Are There Tax Implications When Buying Real Estate with Cryptocurrency?
One of the biggest concerns that come up when talking about cryptocurrency is how it's going to be treated by tax agencies.
We have no way of knowing what's going to happen in crypto over time, so any decisions you make right now could have a major impact on your future finances. If you do buy a home using bitcoin or other currencies, remember that it might be subject to capital gains taxes.
What Should I Do Before Purchasing Real Estate with Cryptocurrency?
Although you can use cryptocurrency in any real estate transaction, there are some things you should consider before making your decision. First, don't buy it with dollars-buy bitcoin first and then use that to purchase cryptocurrency real estate.
Second, know that using bitcoin or another form of cryptocurrency is only possible if both sides of the deal are willing. So, if you want to be paid in bitcoins for selling your house, you may need help finding someone willing to accept it.
Third, take advantage of online resources such as Coindesk or Coinbase where you can track fluctuations in price and get up-to-date information on current trends and breaking news about blockchain technology and cryptocurrencies. Make sure it works for you before purchasing property with digital currency.
Finally, it's always good to brush up on web security when dealing with crypto in general. There are plenty of bad actors out there looking to make a payday out of a beginner's crypto investment, so make sure your devices are updated, enable two-factor authentication for your crypto-relevant accounts, and stick to apps and platforms that have a good reputation when doing any kind of crypto trade or investment.
Who Should I Contact to Buy Real Estate with Cryptocurrency?
The first thing you should do is visit your financial advisor. Cryptocurrency investments are highly volatile and can experience rapid changes in value.
You'll want to have a conversation with your financial advisor before deciding whether it makes sense for you to invest in real estate with cryptocurrency, as not all of them will be able to help you manage the risk associated with these assets.
Next, you'll want to find a real estate agency or a website that specializes in real estate deals made with bitcoins. Those do exist and are the best way to connect looking to buy or sell real estate using Bitcoin.
* This is a contributed article and this content does not necessarily represent the views of realtytoday.com
