Published August 03, 2022 22:29 PM
Cryptocurrencies In Real Estate Transactions
Cryptocurrencies are now used in our daily lives, and it seems that this trend will continue.
Cryptocurrencies are being used more and more frequently, and they are being accepted in a wide range of markets. Using cryptocurrencies will, in our opinion, completely transform the real estate market.
The buyer can save a lot of money by not exchanging bitcoin for traditional currency, and the seller gets to keep the in-demand digital commodity right away.
Only a few minutes are needed for the transaction. Additionally, it is completely transparent. Bypassing banks and attorneys, sellers and buyers are able to verify information at any moment, guaranteeing the transaction’s continued integrity while saving money.
With a unique digital identification system that is a trusted way to establish identity and the availability of funds, blockchain technologies are used to combat fraud.
For a long time, many businesses that deal with financial instruments have been drawn to Cyprus.
Long ago, the headquarters of many financial institutions were relocated to the island. The system of preferential taxes is to blame for this. With the exception of assets that are derivatives of foreign currencies, Cyprus does not tax revenue from securities. In this sense, a lot of cryptocurrency ventures are looking into Cyprus as a location to base their businesses. As a result, bitcoin transactions are generally welcomed in Cyprus.
There are several incentives and advantages to utilize cryptocurrencies as a form of payment when buying real estate, including:
- Speed – the money transfers from one wallet to another in a couple of minutes.
- Transparency – the transaction is documented in the blockchain and is made transparent by using a special digital identifying mechanism.
- Security – thanks to blockchain technology, the seller may quickly verify that the buyer’s wallet holds the requested amount of money by using the buyer’s wallet’s specific address.
- Transaction costs are less than those charged by conventional banking institutions
The volatility of cryptocurrencies is one of the main concerns of sellers; however, this issue is avoided by using assets like USDC or USDT, the two most popular cryptocurrencies in such transactions, as they minimize exposure to the risk of volatility.
Can FIAT Be Given To The Seller?
One of the key inquiries made by a seller is whether they can receive payment in fiat currency or if they must store the money in their wallet in the form of cryptocurrency. In this case, we have the following choices:
- One alternative is for the seller to keep the money in cryptocurrency
- Invest it in other types of cryptocurrency so they can sell it at any time for more money
- The seller has the option of converting the funds to FIAT currency through reputable cryptocurrency exchanges
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