Bitcoin is a very hot topic right now. Should investors who are wholesaling properties be scrambling to accept bitcoins or is it another major pitfall for real estate investors to avoid?
The buzz about bitcoins seems only to be growing, just as the virtual currency is rocketing in value. What are the benefits and disadvantages involved in dealing in this digital currency for those wholesaling houses? Is it a must have or must avoid?
Home sellers are starting to consider additional ways to market their homes and are beginning to think creatively outside the box when it comes to advertising and sales. By listing a house for purchase with Bitcoin, property sellers may be able to capitalize on the media hype and also potentially expand their potential client buyer base by allowing Bitcoin buyers to enter the buying process. In recent years, a few major Bitcoin real estate transactions occurred and, perhaps one of the most notable transactions was a home near Lake Tahoe that sold for 2,749 Bitcoins. This equates to around $1.6 million of real U.S. currency at the time of the sale. Companies are starting to emerge which specialize in the use of Bitcoins in the real estate industry. For example, one such company is Homes4Bitcoin. It is a website that allows for homeowners and agents to list a property for sale with Bitcoins. BitPremier is also a different website which specializes in Bitcoins purchases. It is very easy to know how to purchase bitcoin in US on BitcoinBestBuy.
While it is not yet feasible for transactions such as escrow, title, insurance or property tax to be purchased with Bitcoins, it may just one day be. BitPay is a company that was founded to allow transactions that utilize bitcoin to take place easily and quickly. Similar to the PayPal concept, this is a company that is operating around the use of the bitcoin currency and also has an allotted timeframe for a transaction to be completed before the exchange rate has to be re-calculated. This is primarily because the Bitcoin exchange rate is constantly fluctuating just like the stock market.
It is not just real estate properties that you can purchase with Bitcoin or cryptocurrencies. Other high ticket items have also enjoyed some success when it comes to being purchased with Bitcoin. For example, a small airplane or a luxury yacht are just a few of the many things we are starting to see payment through Bitcoin as a currency. It's becoming straightforward to accept bitcoin, and more and more businesses in various industries are adopting it. A number of online retailers are beginning to take Bitcoin as an accepted form of payment, such as Tesla. In larger metropolitan areas, some property management companies are also allowing Bitcoin to be a form of rent payment for tenants with the advantage being that the currency cannot bounce unlike a check. Right now there is a fantastic window of opportunity for riding on the coattails of the currency and press by taking it. For many, it could be their best marketing move of the year and help to launch their businesses to the next level. Of course, this won't be a door of opportunity open for long. We are talking just a few months or years before the novelty wears off and everyone else is already doing it (depending on Bitcoin's performance and regulation in place regarding its use.
