Cryptocurrency is a type of digital currency that can’t be held in your hand like a coin or bill. Instead, it’s a digital token. How we deal with cryptocurrency as an asset depends on how well we understand how it works as an asset.
Bitcoins, digital wallets, initial coin offerings (ICOs), and other terms related to cryptocurrencies are being used more and more in real estate and in the news. Because of this, cryptocurrency and real estate are becoming more and more connected. Even though not all of the news has been good, it has been an exciting roller coaster ride for real estate professionals, entrepreneurs, and others interested in the latest innovations, technologies, and alternative currencies.
The idea can be hard to understand, but for our purposes, cryptocurrency can be used to pay for things just like regular money. However, it’s not treated like regular money as an asset. Instead, it is more like a stock.
Due to the new era of digitalization in the form of cryptocurrency and dealing with cryptocurrency and real estate and vice versa, a lot of new and technical legal disputes relating to estate and probate matters are being seen. So the safe and secure option while dealing in crypto and real estate matters is including an estate planning lawyer on your team for safe and secure transactions.
You may own a certain amount whose value can change over time. However, while you can trade cryptocurrency for regular currency, you can also trade it for other assets or another cryptocurrency, which you can’t do with shares.
Utilising cryptocurrency and the blockchain to transact real estate transactions could be a revolutionary step forward for the market. It is time for the real estate industry to adopt blockchain and cryptocurrency. This kind of digital exchange has the potential to open up homeownership to people for whom it was previously out of reach.
Many of the rules of how real estate business works are still so old that they are as useless and inefficient as phones that are still plugged into the wall.
Because of this, everyone including brokers, real estate agents, developers, buyers, sellers, and especially cryptocurrency investors should pay close attention to the crypto-real estate wave that’s been sweeping Miami for months, especially since Bitcoin’s price has dropped by 50% since November.
The possible crypto-new normal in real estate is still uncharted territory for most developers and investors, even if many have made billions of dollars selling houses and condominiums the old-fashioned way over the course of their careers. Whether justified or not, the prospect of a currency swap causes anxiety. But even if the present regulations are out of date, everyone is familiar with the game’s mechanics and the inefficiency premium that must be included.
Home listings are one of the most obvious ways that bitcoin is being used in real estate. Several sellers and real estate agents have been using this method to get more people talking about and interested in their homes. Some sellers have said that they will only take bitcoin. Some people have asked to be paid in both US dollars and bitcoin.
This could work well for high-end homes, where the most likely buyers have bitcoin and want to use it to buy a home. This seems to be a growing trend since a lot of people have made a lot of money with cryptocurrencies and are looking for a way to balance that out and keep their gains by turning them into real estate.
Expedia.com has been adding more and more vacation rental listings like Airbnb. The huge site for booking travel also takes bitcoin. For many, this may be a way to lease and rent that is becoming more and more popular. Even more so now that more people are holding small amounts of cryptocurrency and more people are living more nomadic lives.
Smart contracts and decentralised ledger technology could change many industries in the long run, including finance, intellectual property, logistics and supply chain, the internet of things, energy, health care, insurance, and the sharing economy. Due to the revolutionary progress in the fields mentioned above, we cannot ignore the importance of lawyers and attorneys who are playing pivotal and important roles in clearing and explaining things and issues more transparently in litigation matters related to estate, probate, wills, and family lawsuits.
These lawyers are giving advice on anti-money-laundering/know-your-customer (KYC) issues and other related compliance issues. They also help with the registration requirements for money service businesses and money transmitters. Additionally, they work with venture capital firms on deals involving companies that deal with blockchain
There are a lot of new digital currencies with names like Bitcoin, Litecoin, and a million other “coins.” Inc. says that there are already more than 1,300 different kinds of digital currency. Right now, hundreds more are in the process of being released. This is easiest to think of as digital money that you never hold or touch. The easiest way to look at this is to picture it to be like money in your PayPal account that you transfer but never see or touch, tokens in your favourite video game, or cash reward points on a credit card. It’s not real, but you can earn it, send it to other people, and spend it.
From the above, we concluded that things are changing quickly for financial products and services that use blockchain technology. Whether they are starting funds to invest directly or indirectly in digital assets or making new coins or tokens for the launch of new distribution networks, clients in this area have specific needs that Dechert is well-suited to meet.
One of the most popular ways entrepreneurs try to use digital currencies in real estate transactions today is by making new currencies and tokens that can be used to buy, rent, trade, and invest in real estate without having to do a traditional transaction. This is more like buying stock in a company that might own real estate.