Cryptocurrency the future of real estate transaction
Using cryptocurrency in real estate investment
February 9, 2020
Reasons blockchain technology will transform real estate
February 13, 2020Cryptocurrency the Future of Real Estate Transaction
Cryptocurrencies such as Bitcoin and Ethereum are virtual currencies. They’re pretty much like digital versions of dollars that you can use to pay for real estate and other goods. On the other hand, blockchain is the ledger, the database that is being distributed and it is immutable. It provides transparency. Cryptocurrencies like Bitcoin and Ethereum run on their own blockchains, so they’re secure. In Propy, they use blockchain technology in their backend to make their products transparent and immutable. They’re preparing for their next wave of consumers, such as millennials, who don’t want to go to banks. They want to make a few clicks and buy any good they can, online. Interest in the home buying process in particular is declining for the younger generations. At Propy, they are looking into automating the purchase process to eliminate the hassle.
Propy, is looking into becoming the Amazon of Real Estate. Without a transaction platform, the buyer can electronically sign the purchase agreement online; communicate with their agent, the seller’s agent, and with a title company. Propy, then, provides the payment instructions and the consumer or the end user receives the evidence of the deal – the title. The current process is slow and laborious. It’s just inconvenient. At the moment, there’s a lot of scamming going around, deposits… trying to capture that information, and etc. The majority of real estate transactions are done through email, AKA the oldest protocol ever, so the hacking process is really easy. With cryptocurrency, and Propy by extension, that lack of security is avoided.
Blockchain
One of the really cool things about blockchain is that it breaks the transaction down into lots of little pieces of data then puts them all back together at the other end. It’s all scrambled, so while the data is in transit, it can’t be hacked. It also means that if you live in the US and want to buy property in London, you don’t have to convert your US Dollars to UK pounds; you can actually have that be a part of the cryptocurrency or blockchain transaction. As for the legality of the transactions, when end users receive their purchase agreement, or the offer to sign, the agreement is stored and hashed. The hash then is put on the hash of the document onto the blockchain.
Hash by the way, is an encrypted string of numbers and letters. It has a fixed length so no matter how long the data you enter is, the result will always have the same length. So, if something happens in the future, or if the title or deed is lost, then the blockchain serves as evidence of ownership. Many governments recognize it as evidence in court.
Buying a house with cryptocurrency
It seems like it was not too long ago that cryptocurrency was only used for shady dealings on the dark web. Today, the landscape is vibrant with new opportunities and a growing list of applicable crypto use cases. At the end of this current decade, it will be possible to buy a house with cryptocurrency; on top of that, it will be easy. This sounds hard to believe, but it is true. If you are truly serious about buying a house with BTC, BNB, or XRP, then there are a few large factors to consider. First and foremost, you must find a seller who accepts crypto as payment. As one can imagine, this is no easy task. If you somehow find someone who can accommodate your needs, the next step is deciding if this seller is trustworthy. Even if you do find a trustworthy seller, there are more roadblocks.
Next, you will have to find a title insurance and escrow company that feels comfortable handling your crypto transaction. There is a good chance that this company will ask you to cash out your crypto in favor of something more traditional (e.g. fiat), essentially defeating the purpose of buying a house with crypto. If this all seems like a great deal of work to you, then you are right. However, there is an easier solution. As mentioned earlier, buying a property with crypto is an expensive and tedious adventure. Thankfully, there are modern options that make everything a bit easier.
How to buy property with crypto?
While it is not as easy as ordering a pizza online, buying a house through Propy is far more efficient than traditional methods. On this platform, a buyer searches through the marketplace until the buyer find a suitable property. From there, the buyer submits an offer to the seller. After the seller digitally signs it, the intermediaries complete tasks, such as property inspection and other conditions that are requested by the buyer.
The future of cryptocurrency and blockchain
Crypto and blockchain is a very new technology that still has a long way to go for people to start adopting it. Two years ago, the resistance was tremendous. Many agents were asking if property transactions using cryptocurrency was even legal at all. To even start, an MOU (Memorandum of Agreement) was required with a Minister of Justice. But once the first steps were underway, the procedures and processes that came after were easier. Propy has had amazing feedback from leading brokerages in the US and in the UK as well. CEOs want software to help agents do more transactions efficiently rather than hire new people as well. As for us, we’re excited to see how it will look moving forward and we think crypto has great potential in the industry of real estate.
If you are looking for a modern, uncomplicated, safe and hassle-free way to make your money grow, then Crowdfunding Place might be the investment solution you’ve been waiting for.
