As consumers continue pushing toward digitalization and next-gen technology, landlords are starting to capitalize on these trends in new and unique ways. With more interest in platforms like Bitcoin, Ethereum and Monero than ever before, we decided to take an in-depth look at the current state of cryptocurrency and its potential to revolutionize the market.
Digital currency, also known as cryptocurrency, is a virtualized alternative to paper-based money. It’s strength is derived primarily from its foundation, blockchain technology. It’s a highly secure and verifiable means of transferring funds from one online account to another. While it offers some degree of anonymity in certain applications, it also establishes a transparent and traceable path for all transactions.
Modern cryptocurrencies like Bitcoin, Ethereum and their countless competitors are so secure and reliable that some IT experts claim they’re entirely un-hackable. While this remains to be seen, its potential to replace traditional, paper money is drawing a lot of attention from any industry that relies on consumer-based financial transactions – including real estate.
Those who were quick to embrace cryptocurrencies are already reaping the rewards. A resort property in Lake Tahoe sold for more than $1.5 million – or a total of 2,739 Bitcoins – in 2013. It was the largest real estate transaction involving Bitcoin at the time, but there’s been many successful deals since.
A residential property developer in Manhattan is even accepting Bitcoin for upscale condominiums in a brand new development. He’s already seeing interest from customers interesting in purchasing luxury condos with Bitcoin. These range in price from $700,000 to $1.5 million, so they’re not cheap by any means. He expects to see even more interest as cryptocurrencies gain more momentum among mainstream consumers.
The reach of cryptocurrencies like Bitcoin goes beyond the United States. A mansion in the Notting Hill district in London hit the market in late 2017 with an asking price of $17 million – and the seller only accepts Bitcoin.
Much of the big profits in modern cryptocurrency required early and significant investments, when the most popular cryptocurrencies were trading for dollars or even pennies. But there is still a lot of potential for future investments in Bitcoin, Ethereum, Monero and similar platforms.
All of this newfound interest in cryptocurrency will transform the way we do business in the real estate industry and beyond. Backed by a platform that might prove to be impervious to hackers or fraud, Bitcoin and its competitors is shaping up to replace traditional money as the preferred currency of realtors and investors around the globe.