Can Blockchain be the future of real estate?
Since the middle of 2021, various real estate companies have begun to accept cryptocurrency payments. And, while it is true that the adoption of new technologies takes time (such as the use of credit cards in the past), cryptocurrency and Blockchain are now widely used in the United States. There have been a few cases of real estate purchases using cryptocurrencies in recent years. Miami quickly took the lead in this context, as it currently holds the record for America's largest known cryptocurrency deal on real estate - a penthouse sold for $22.5 million in crypto equivalency. Despite this new opportunity and market boom, some people (particularly developers and investors) still need to get used to and learn about this system.
How has everything been working so far? Buyers from all over the world can put down a deposit on a condominium in any cryptocurrency that can be traded from their own digital wallet to another cryptocurrency that can be instantly withdrawn in USD (by the receiver) with a simple swipe on an app, completing an instant transaction. All while adhering to anti-money laundering and “know your customer” regulations to ensure complete legality. Big real estate companies are partnering with companies that support the buying and trading of cryptocurrency, and they are closing more deals in cryptocurrency instead of traditional currency.
Miami's crypto real estate boom has served as an example for other American tech-centric cities such as New York, San Francisco, Austin, and Los Angeles. It has been heaven on earth for some of the few real estate agents who have been early adopters of this system, as they realized how these cryptocurrency and Blockchain transactions are legal, enforceable, and efficient. Furthermore, blockchain supports the innovative "smart contracts," which are essentially self-executing contracts in which the terms of the agreement between the buyer and seller are directly written into lines of code that exist across a distributed decentralized Blockchain network. So far, blockchain and real estate have been smartly regulated locally. With rules such as proof of identity, anti-money laundering, and “know your customer”, crypto transactions in real estate have been a very safe and secure method that holds great promise for the industry's future.