Can You Use Cryptocurrency to Invest in Real Estate?

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How to invest in real estate using cryptocurrency

In 2018, the global real estate market grew from a value of $8.5 trillion to $8.9 trillion. The transfer of wealth through real estate is enormous, but it still operates in a very traditional way. It requires face-to-face meetings with investors, lawyers, and banks. A transaction also takes weeks or even months to set meetings, file paperwork, put money in escrow, transfer the funds, and cut checks.

Cryptocurrency — and the blockchain — offer a solution to the slowly turning wheels of the traditional real estate market. The infrastructure for buying real estate with virtual currencies already exists, and early adopters are taking advantage of it. In 2017, a buyer purchased a single-family home in Texas using Bitcoin and BitPay. Someone else used BitPay to buy property on Lake Tahoe for $1.6 million. Chinese investors are also very interested in using virtual currencies to diversify their holdings away from the prying eyes in Beijing.

In other words, the answer to the question is yes, you can use cryptocurrency to invest in real estate — and people already have. However, before you start shopping, there are a few things you need to know about using Bitcoin to pay for your dream property.

Every Buyer Needs a Seller

Cryptocurrency can be an ideal way to facilitate a transaction for a single-family home or even a highly specialized commercial building such as a winery or brewery. To buy this kind of real estate, or any other for that matter, with Bitcoin or another cryptocurrency, you need a seller willing to accept your offer. Finding a seller isn’t your only issue: you may find someone willing to accept payment in Bitcoin, but you will also need to find a brokerage, title insurance company, and escrow provider willing to support a virtual transaction. Early adopters are also likely to face resistance in terms of proving their identity; sales are highly unlikely to enjoy the…

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