Cryptocurrency is an innovative ecosystem, already doing its magic in real-estate all over the world, and it is here to stay. In case you do not know, cryptos are digital currencies, that do not depend on banks to transact due to its blockchain security, which records every transaction in an open-source list that lives in every single computer that becomes a part of this technology. Transactions with cryptos are done directly from one person to another, without the need of a third-party like PayPal.
Buy anything with cryptos. Really?
Cryptocurrency is becoming a way of payment for regular everyday things. And it is not hard to use cryptos anymore. I sincerely believe that in about 10 years, more or less, we will be doing practically everything with easy using cryptocurrency. Because the only thing you need to pay in cryptocurrency is the agreement of the seller, doesn’t matter what you are buying. If the seller says yes, then you have a trade. And Yes! It is seen as a trade, or a swap, because cryptos are said to be property not currency, which is the reason (in many countries) you do not pay taxes on it right away when you trade, buy or sell with cryptos until you turn those cryptos into FIAT currency (like USD and EURO). But you must inform yourself accordingly with the country where you may be trying to transact.
When I think of buying a house with cryptocurrency I confess I feel a little funny. Lol I mean funny, as in wait a minute, you serious? I cannot believe we have reached a place in time where we are purchasing homes, business, cars and absolutely everything you can possibly think of with digital currency. Something that was thought of as CRAZY 10 years ago, has turned ordinary people into millionaires. Back when bitcoin first got started it was thought of as NO-WAY-JOSE, and people who got to buy these coins for 30$ freaking bucks each happen to be millionaires now. What can we possibly say?
Not many people believed in it, and the people who did, from high school drop-outs to serious investors are now combined into representing some…. I repeat…. MILLIONAIRES around the world.
Now it’s time to start understanding how things are going to turn out, and real estate is a HUGE part of this. Many coins and tokens that exist at the moment came into existence specifically to become a real-estate-market, like WCO for example. https://winco.io/?l=on
Cryptocurrency acceptance in the Real-Estate market around the globe.
The US government recognizes cryptos as property not currency, as every other country in the globe. The IRS treats swaps or trading as taxable, unless it falls under the 1031 exchange law for like-kind exchanges https://bit.ly/2f37nbL and we will only find out officially if cryptocurrency falls under that category or not, by the end of the year. And just so you know 1031 exchange is for real-estate only.
“In the U.S., the IRS stated they consider it property, and every transaction needs to be calculated as a capital gains tax,” says Jake Bryan, bitcoin consultant. “There are services out there to simplify the process — I recommend Node40’s blockchain accounting tax service.”
Trading houses, homes & any sort of property for cryptos in America is happening as of right now through companies like Blooming Sky (NY), Magnum Real Estate Group(NY), Sand Key Realty (FL), Brown Harris Steven Residential Sales/One Sotheby’s International Realty, & Kuper Sotheby’s International Realty (TX).
Now here is a real estate in Canada selling luxury properties all around the globe http://bitcoin-realestate.com/
“Real estate developers, brokers and sales representatives must fulfill specific obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations to help combat money laundering and terrorist financing in Canada. These obligations include establishing a compliance program, client identification, record keeping, ongoing monitoring of business relationships, and reporting certain types of transactions to FINTRAC,” says Jamela Austria, a spokesperson for FinTRAC.
The UK has already taken some measurements to protect their customers from the fluctuation of cryptocurrencies rates. “We have designed a contract to protect both the buyer and seller from fluctuations in the exchange rate. The Land Registry agreed in principle that the price could be recorded in Bitcoin, but the buyer may well choose to use pounds, simply because calculating any capital gains tax may prove very complicated.” Says Solicitor Adrian Toulson, director of risk at law firm Breeze and Wyles, was involved in the ground-breaking conveyancing.
Bali, Indonesia is the last place you’d expect to be involved in cryptos, right? Well Bali was one of the first places to embrace cryptocurrency real-estate, even though there isn’t much listed, there has been an investment of 800 bitcoins for a villa in Bali. Wow!
Mr. Piso a real-estate agency in Spain fully embracing cryptos has sold a property for 40 bitcoins and are currently open to the innovation.
Here are some tips I have learned and readjusted with a real estate agent Tony Giordano (via cnbc.com):
- Research: YouTube videos can be very helpful with this.
- Understand: No matter what people call it, cryptos are a real currency which you can buy or sell with it, trade per se.
- Hire and Expert: Make sure that the agent you are hiring is very familiar with cryptocurrencies, how to operate them and how to best protect you from fraud since this is still an unregulated market.
- Practice/Learn: There’s nothing better than learning it by doing it, and with cryptocurrency it is no different. Download an app like Opay or Coinbase, learn how to buy and then sell again into whichever fiat currency you desire. Search for a list of cryptocurrency vocabulary on google.
- Keep up to date: stay tuned to websites like com where they present the main currencies in the market right now.
Cryptocurrency real-estate is only at the beginning and embracing it in the early stages may be the smart thing to do, from investing in these tokens to learning how they process, giving a try into buying and selling with them. Let us know your opinion of where you believe this will go, whether you’d like to invest in it, and how far should we go into investing these tokens in the real-estate market.
The Winco Team has been working hard on solutions for the real-estate market around the world connecting non-digital business to the cryptocurrency world. Stay connected to our blog and social networks for helpful updates on how to incorporate your Wincos and cryptos in general into your everyday life.