Bithomes: How Cryptocurrency Is Modernizing the Real Estate Industry
Real-estate and cryptocurrencies are a match made in heaven according to insiders in both industries. As cryptocurrencies mature, so, too, will their seemingly limitless applications in the real-estate biz.
“This industry of real estate is notorious for lagging behind in technology, and innovation […] Why [Bitcoin] hasn’t touched down in real estate in the sale of an apartment is odd, quite frankly.” – Ben Shaoul, President of Magnum Real Estate, LLC.
Ben Shaoul sells real estate in New York City, one of the most competitive real estate markets in the world. And he’s received several recent requests from buyers who wanted to pay for property in Bitcoin.
In fact, most of the people who request to pay for real estate with cryptocurrency are shopping for homes in the $700,000 to $1.5 million range. Most of the clients approaching Shaoul to pay in Bitcoin are young people who want alternative payment options or international buyers accustomed to using cryptocurrency.
While your average real-estate buyer isn’t ready to buy their next home with Bitcoin, real-estate industry professionals are realizing they need to be able to accommodate the buyers who are.
The first U.S. home sold for Bitcoin was in Austin, Texas, one of the most technologically-advanced cities in the country. The buyer was an anonymous tech professional, unsurprisingly.
In addition, many property owners like Shaoul see cryptocurrencies like ether and bitcoin as a new class of assets they’ve added to their portfolios. Shaoul, who also collects art, plans to buy and hold his own bitcoins, too, until they appreciate considerably.
Changing the Face of Real Estate
Many real estate companies are looking for ways to appeal to the younger, more modern demographic. Millennials want transparency, efficiency, speed and mobile access when it comes to everything, as the stereotype goes.
Though businesses strive to build apps to keep up with the growing tech demands of their industries, ShelterZoom has released a free app that any real-estate company can use on their website to facilitate smart contract property purchases.
On the app, buyers can instantly submit offers for any property and complete the offer process through the site widget. All transaction parties receive push or text notifications throughout the offer process.
The ShelterZoom widget can instantly modernize any real-estate website to appeal to Millenials or tech-savvy buyers.
ShelterZoom was built on Ethereum’s blockchain. The widget creates a nearly paperless offer process that’s simple, fast, standardized, highly-secure, and completely auditable.
BrickBlock: Crypto Backed By Real Estate
Another interesting development in the field is BrickBlock, a cryptocurrency coin backed by physical real-estate properties.
In much the same way that crypto-currency increases accessibility to its asset holders, BrickBlock buyers can invest in high dollar, luxury real estate with only $100.
BrickBlock transactions are completely transparent, blockchain-stamped transactions. BrickBlock’s creators say BrickBlocks are a more secure investment than standard cryptocurrencies are because they’re backed by something that’s physical.
— Brickblock 🌎 (@brickblock_io) November 15, 2017
Practical Solutions Means Adoption’s Forthcoming
Society has become comfortable with shopping online for both small and large items. In addition, younger generations want to carry out every transaction through their mobile devices or social media accounts.
Cryptocurrency offers high-level security, transparency, and auditability. It also makes financial transactions easier overall.
In many ways, the blockchain provides realistic solutions to safely bring several types of real-estate processes and transactions online.
Soon enough, paying for houses in anything other than crypto may be seen as absurd.
What do you think? Do you think the real-estate industry is a great place for blockchain solutions? Be sure to sound off in the comments below!
Image via ShelterZoom, Realtybiznews