The Pros and Cons of acquiring a property utilizing Cryptos.

The Pros and Cons of acquiring a property utilizing Cryptos.

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Who would´ve thought of buying a home online with digital currency just a few years ago?


The real estate market has gone through some great changes, and though the properties are still pretty much the same, the way people are buying has changed drastically.

This is a 217 trillion dollar market making up to 60% of all global wealth, but though this is the largest source of wealth, it is also the most illiquid for about 99% of the world today.

Blockchain offers a secure and transparent platform making it suitable for mortgages, titles, and real estate transactions allowing investors to purchase properties from anywhere in the world. Also, the integration of new technologies provides liquidity through cross-border investments for investors all over the globe. This ecosystem has the power to transform how real estate authenticates ownership.

Cryptocurrency and Blockchain have paved a distinct path for the real estate market, opening the doors for the possibility of e-commerce in this division.

Millennials and even the generations to come are ready to start buying properties online; the conjunction of the new technologies with the real estate industry reflects how people are buying and desiring to buy more daily.

So let’s take a look at the pros and cons of purchasing properties with cryptocurrency at the moment?

1. Accessibility to the best the industry has to offer (Pro)

Without boundaries, investors can access the best properties and opportunities all over the globe, and they can diversify their portfolio in many different categories.

2. Volatility (Con)

Volatility has kept numerous investors out on the sidelines, but if predictions are accurate and cryptos do come to settle down then a new giant wave will come forth within the real estate sector. As of now, volatility is very high, prices can change within just hours, which can be a problem when purchasing a house, for example, because imagine what would happen if you have a set price to pay for your down payment, and prices drop right on the day of your agreement? You would be short and that is not good, so as of now crypto transactions must be done quickly, which may not always be possible.

  • ps: most of the cons in purchasing a property by using cryptos will be attached to the volatility and taxes coming up a little further along.

3. Diversification (Pro)

Cryptocurrency and blockchain support international real estate with significant efficiency. This is one of the biggest advantages because it gives you the chance to invest in different aspects of real estate allowing you to spread your money around the globe. Diversifying is very important because it balances out your risks and it can maximize your investments.

4. Taxes (Con)

It´s crucial to note that there are tax implications for using cryptocurrency and the problem with this is that most countries do not have clear tax lawsencompassing cryptos.

You do not want to get caught up by surprise in the middle of your real estate investments, right? So you must get familiarized with your country’s laws, seek a cryptocurrency consultant or accountant.

In most countries, you only pay taxes on cryptos when you convert them into fiat, so it is possible that you could purchase a home with cryptos and may only have to pay taxes when you sell it in fiat currency, but as mentioned above seek for a professional to assist you with legal advice.

5. Quicker and Safer transactions (Pro)

Real estate transactions have always taken place offline, buyers and owners face to face, but cryptocurrency and blockchain are revolutionizing that through the security and efficiency of smart contracts because it eliminates multiple intermediaries and bureaucracy. So this ecosystem is inevitably faster than the traditional approaches.

6. Tokenization (Pro)

This process represents a fractional ownership interest in an asset with a blockchain –based token. So each token represents a small part of the asset like a share or a stake of an asset; it makes real estate industry inclusive, which until not long ago had been reserved for the wealthy, but now with the blockchain tokenization, the average person can also take part.

7. Less fees (Pro)

Can you think of an inexpensive overseas investment? Probably impossible when considering all the fees exchanging fees, investment fees, broker fees, transfer fees, attorney and taxes, it can accumulate to a massive total. However, through tokenization, as mentioned above you are able to cut through this process and all the expensive intermediaries, diversify and invests in international real estate without ever leaving your home.

8. Smart Contracts (Pro)

“The practical consequence […is…] for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate.” — Marc Andreessen

Indeed. Smart contracts enable blockchain to satisfy pre-set rigorous legal requirements needed in the real estate sector that usually take infinitely much time, but with smart contracts, the entire process can be optimized with much more flexibility.

Final Thoughts

Real estate will never be the same after this period of adoption, millennials are changing everything, properties may start to change, ownership, and even the desire to own home might change. The ease of acquiring property through the new ecosystem may spark more of the interest of millennials, and the generations after that, whose interest of purchasing a property through the traditional process is zero to none.

Cryptocurrencies and blockchain are obtaining their fit in this world because the world is finding their real use cases.

The community is continually finding applications the world needs and once the globe awakes to what Blockchain and Cryptocurrency can do all the use cases we are still to discovering there will be no turning back. The new ecosystem is reconstructing the real estate sector, and it has great potential to transform the medical/health, education, jobs/employment, and so many other domains because it affects accessibility in areas that weren’t reachable before.

The Winco Team


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Disclaimer: Our team works hard to bring you the best content in the cryptocurrency market, but it is only our point of view and not legal advice, and may be divergent from other opinions, so please do not make any decisions without concluding studies of your own to understand the profit possibilities and uncertainties involved at your own risk.

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