Buying real estate for cryptocurrency is now more than real!
Skeptics have been trying to convince us for years that the crypto market is a “bubble”, but in the long run 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, the cryptocurrency was no longer perceived simply as a speculative asset, now it is a real alternative to traditional payment systems.
However, there is still a lot of work to be done before the mass adoption of cryptocurrencies. We are talking not only about the “high” threshold for entering this market, but also about the availability of real assets for purchase with cryptocurrency. Buying pizza or games on Steam is not surprising, but what about real estate?
Real cases
The reality of buying real estate for a crypto, as well as the nuances of this process, depends on the legal regime in the country.
In May 2021, an exclusive penthouse was bought for the crypto — part of the Arte Surfside building, on the ocean in the Surfside area, in Miami Beach (USA). In fiat currency, the deal amounted to more than $22.5 million. The buyer himself remained anonymous, as well as it is not known what cryptocurrency he uses. This deal came a month after Arte Surfside announced that it was accepting cryptocurrencies.
At the beginning of May 2022, in the Portuguese city of Braga, a three-room apartment was bought for a crypto without any conversion into fiat money. Local media presented this deal as the first in the history of the country’s real estate market.
This was made possible thanks to changes in the legal field that came into force in April 2022 last month. 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 Russia, payments in cryptocurrency are not yet 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 in the form of an exchange agreement. There are sites in Russia where you can exchange real estate for cryptocurrencies, for example Barter Smartplace.
But what about the future?
In the future, we will be able to see real estate tokenization cases using NFT technology. This trend will manifest itself in the following ways
- Fractional ownership of real estate. NFT here will represent a share in the ownership of 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.
- Finally, NFT can act here as a mechanized intellectual property right and be sold on the same principle as digital art. For example, you have created a unique project for a house and receive a percentage of each resale of this house, similar to patenting.
So far, the crypto market and the NFT industry are just beginning to develop real estate. Previously, crypto-enthusiasts were afraid of legal difficulties and tried not to get involved in trading real assets, but now success will be for those who manage to occupy this niche in time. Nevertheless, the registration of ownership of real assets is carried out in the registers of public authorities, so blockchain registries should become legitimate for registering transactions.
Use our apps:
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