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Bitcoin Real Estate Purchases Come With Difficulties

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In the first half of 2017, the price of a currency exceeded the price of an ounce of gold for the first time, before breaking its historical peak, reaching $ 1402.03 on May 1, 2017. According to Michael Goldstein, president of the Satoshi Nakamoto Institute and host of the Noded Bitcoin Podcast “Bitcoin (BTC) is not competing with Visa or MasterCard. Bitcoin is competing with the Federal Reserve and the U.S. dollar,” says.

The cryptocurrency isn’t just a risky investment opportunity for the adventurous; it’s becoming an alternative way of paying for regular things. Over 100,000 merchants worldwide accept bitcoin, including Microsoft, Expedia and at least one Subway sandwich shop.

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There’s been a lot of hype surrounding purchasing real estate with cryptocurrencies like bitcoin. However, even though bitcoin has spiked considerably in value using the asset for purchasing properties and homes is not so easy.

You can buy a house with bitcoin, and it’s not as hard as you may think. You just need one thing: For the buyer and seller to agree on exchanging bitcoin for the property.

There are also excessive sales out there in the real estate market as well as bitcoiners can now acquire an abandoned prison facility for over 88 bitcoins. But everything’s not as simple as you think, despite, according to the publication Mansion Global, many real estate agents and attorneys have revealed that offering to purchase a home with bitcoin may come with some issues.

For instance, most BTC to real estate purchases are treated as an “all-cash” buy, and users usually transact between wallets or a facilitator like Bitpay. Due to the type of transaction, both parties will need a lawyer for the closing of the deal and it’s likely they will only accept fiat. Additionally to having lawyers present, the two parties also have to use an underwriter and an insurance company as well. Furthermore, some real estate deals have been made but fell by the wayside due to bitcoin’s price fluctuations.

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