Should you use bitcoin to buy property?
21 Feb, 2018
“I think the internet is going to be one of the major forces for reducing the role of government. The one thing that’s missing but that will soon be developed, is a reliable e-cash.” - Professor Milton Friedman, a Nobel Prize winner in economics
Whether Bitcoin can be called as a legal tender or currency is still debatable, but it can definitely buy you products and services just like an official legal tender in most of the countries around the world.
Whether you are tech savvy or not, but you would have definitely come across the term Bitcoin or Cryptocurrency. This blockchain based technology has been making headlines recently due to the dramatic rise in prices. A single Bitcoin today is trading over £7000 which looks impressive (figures as of 21st February).
Bitcoin-based transactions have already started taking place in the property market. The sellers can list their properties and engage with those buyers who are interested to pay via Bitcoin.
Here, are the reasons why Bitcoin is soaring popularity in the property market.
- Bitcoin facilitates quick transaction processing as compared to lengthy bank transfers due to its faster verification process.
- It has shown a fast growth and acceptance and many financial institutions are taking it seriously due to its increased value and acceptance rate.
- The currency facilitates privacy as it is not associated with any name, address or other personal information, thus one can maintain anonymity of the transaction. However, one needs to know that once you convert it to a normal currency, then you will lose the anonymity.
- There is no fee attached with Bitcoin when compared to other transactions. So, as the valuation soars, there are chances of making more profit. Also, there is no ‘margin’ involved unlike in traditional bank transfers on currency conversion in case of international transactions.
- A bitcoin based transaction takes place over a network which involves several computers, all with different owners and at different places. So, when the transaction is made, it is recorded on every single computer on the network thus reducing the chance of cheating or changing details as that would mean breaking into every single device on the network.
- The digital tender has a restricted supply which in theory protects it from any manipulation and inflation.
So, if a person wants to buy a property with Bitcoin, he or she will have to choose an e-wallet to store the money. Bitcoins can be purchased either from people via Cryptocurrency exchanges or directly from exchanges.
The bottom line is that Bitcoin is fairly new in the market, but is rapidly gaining popularity. However, it’s not mainstream enough to draw a volume of buyers who can be offered sale only in Bitcoin. Though it can be added as an alternative mode of payment, but how many would choose it over the traditional payment methods is still a question mark.