Despite the fact that many conservatives insist that the crypto market is a dangerous world, however, in the long term, it continues to grow, despite all its volatility. Moreover, in the era of sanctions, when people began to be deprived of the possibility of paying with Visa and Mastercard, cryptocurrency was no longer perceived simply as a speculative asset. Today, cryptocurrencies are a real alternative to traditional payment systems. About how it can be used, and whether it is possible with its help. buys real estate – we will tell in this article.
The moment has not yet come when the cryptocurrency is used massively for various types of purchases. Thanks to BTC and LTC, we can even pay for entertainment services, like a Netflix subscription or blackjack gambling. However, we are talking not only about the widespread use of cryptocurrency, but also the availability of real assets for purchase with cryptocurrency. If the purchase of small goods can hardly surprise anyone, then the purchase of real estate for cryptocurrency is already something more serious.
Real cases
The reality of buying real estate for a crypt, as well as the nuances of this process, depending on the legal regime in a particular country. For example, in 2021 in Miami Beach (USA), an exclusive penthouse was purchased – part of the Arte Surfside building, on the ocean. The purchase was made for cryptocurrency. In fiat, the deal amounted to over $22.5 million.
At the beginning of May 2022, in the Portuguese city of Braga, a three-room apartment was bought with the help of cryptocurrency – without any conversion into fiat money. Local media presented this deal as the first in the history of the country’s real estate market.
Such a purchase became possible due to changes in legislation that came into force in April 2022. Now, property owners and realtors in Portugal can directly sell their homes for cryptocurrencies – previously for such transactions, it was required to fully convert their savings into euros.
In many other countries, payments in cryptocurrency are still not legal, but the legal situation is rapidly changing for the better. In addition, no one has yet banned barter transactions, so it is possible to exchange crypto-assets for real estate as an exchange agreement. In many countries, there are special platforms where it is possible to barter real estate for cryptocurrencies.
But what about the future?
In the future, NFT technology will allow real estate tokenization cases to be implemented. This will have the following scopes:
Fractional ownership of the real estate. NFT here will represent a share in the ownership of the real estate, this will simplify many bureaucratic procedures, and will also make the purchase of housing on the principle of crowdfunding relevant.
Rental of property. Here, the NFT would symbolize the level of residency rights for a certain amount of time. That is, one person may have an NFT that secures his ownership of an apartment, but another person may have an NFT that secures the right to use housing in the next three months, for example.
In addition, NFT can also act as a mechanized intellectual property right and be sold on the same principle as digital art. For example, if a person has created a unique house design and receives a percentage of each resale of this house, similar to patenting.
Today, the crypto market and the NFT industry are just beginning to develop in the real estate market. And if earlier cryptocurrency adherents were afraid of legal difficulties and did not seek to trade real assets, now the one who occupies this niche can become quite a successful businessman. But due to the fact that registration of ownership of real assets is carried out in registries of public authorities, blockchain registries should still become legitimate for registering transactions.