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IS IT POSSIBLE TO BUY PROPERTIES WITH CRYPTOCURRENCIES?

Currently, with the boom that Bitcoin has represented and the use of cryptocurrencies as a means of payment for goods and services, the possibility of acquiring real estate or property in the traditional market is not in the minds of many people, just an illusion. Even though metamask holds prominence.

Although if we go back a few years, no one expected that today they would be paying with digital currencies and characteristics different from traditional money.

The fact is that the interest of corporations and goods and services companies has increased significantly, which has led to the use of cryptocurrencies as a means of payment.

What does the traditional financial sector think?

Many people have benefited from significant sums of money by investing in cryptocurrencies, which has led them to consider saving them or investing in new projects, among which investments in the real estate sector stand out.

One sector that has even been reluctant to use cryptocurrencies is the traditional financial system; consequently, its benefits are relatively zero because service fees cannot be used.

Worldwide, the real estate market is considered one of the most lucrative, which is why for many; it is not to their liking to know that they can carry out transactions in cryptocurrencies since they are generating insecurity due to ignorance of the subject.

Although nothing is impossible, the same is happening with the acceptance of cryptocurrencies in various daily activities of people, where goods and services can be paid even with payment cards in cryptocurrencies.

On the other hand, we observe how in some countries, the acceptance of payments for the purchase of real estate is being taken to government entities where the amount of the investment can even be expressed both in traditional currencies and its equivalent in cryptocurrencies.

The banking entities in this type of negotiations go into the background and it is the real estate agencies that are in charge of carrying out the entire process of buying and selling properties and, in turn, they are the ones who take the profits.

Key points of cryptocurrencies

Consequently, acquiring real estate through cryptocurrencies has caused great controversy; there are some essential considerations for carrying out this type of negotiation.

  • Cryptocurrencies, due to the lack of legality in most countries of the world, are valued as digital assets and not as a means of marketing properties or real estate; it could be considered something illegal for the traditional market.
  • Due to the lack of rules and laws that allow regulating the purchase-sale operations of real estate with cryptocurrencies, it makes the regulatory entities adhere to the use of the country’s official currency where the transaction is carried out.
  • Only the parties involved are the ones who accept or not the use of cryptocurrencies to carry out this type of commercial operations, remaining at their sole discretion, since in most countries no one is obliged to receive them.

A more reasonable option for the traditional market

Although the purchase of properties with cryptocurrencies is somewhat difficult to digest, it is valid to consider other options that allow achieving the final objective of “acquiring the property,” such is the case of the exchange of cryptocurrencies for fiduciary currencies.

This type of operation would not be so complex; even the parties could carry out the process in a more traditional environment, without any inconveniences.

It should be noted that to carry out a transaction of this type, the parties involved must be aware and clear of the possible considerations that the use of this type of funds could entail.

Even if this option is considered, it is necessary to file tax returns with crypto assets before the relevant entities since the parties are forced to declare them and even pay a certain amount of money for tariffs and taxes due to the large amount of money that the crypto assets represent transactions of this nature.

Conclusion

With globalization in the world, it is not very difficult to think that this type of operation would take its legal course because cryptocurrencies represent the refuge of the savings of people and investors.

If a legal regulation is achieved in the traditional real estate market, the intermediaries are the most affected by not obtaining a profit because the transactions would be carried out from buyer to seller or vice versa.

On the other hand, this would further promote the use and management of cryptocurrencies as a form of payment worldwide; legal support is more than enough for users to take such a big step because it requires significant capital to acquire a property.

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Smitty
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