The fact we are discussing this is exciting. The idea that we would have a viable, new currency was unthinkable to most at the start of the millennium. Because we have become more digital, our currency and products (e.g., NFTs) have followed suit.
Some elements could present issues regarding whether you can purchase real property. Cryptocurrency was established as a payment method that didn’t involve a bank or outside party. Although this was initially accomplished using blockchain, it is essential to note that not all cryptocurrencies use similar blockchain technologies.
Bitcoin & Blockchain
Bitcoin began in 2008. Because of its age, it may be the most commonly referenced form of cryptocurrency. In an attempt at simplification, bitcoin’s blockchain technology is a list of transactions. When one person gives another a Bitcoin, it is documented on the ledger—which is public.
To prevent people from altering the ledger and adding their name to it, the creation of each additional block was originally immensely complex. It has since been adapted and modified to keep up with how quickly the money is being exchanged while also maintaining its security.
Buying Real Property
Can you buy a home with cryptocurrency? Yes, you can—but there are hurdles. Recall the ledger discussed above. Your actual name may not be on it. You may have to take additional steps to prove that you indeed have these funds to the lender or seller.
Although it is implied, the seller will have to accept this form of payment. But regardless of your currency, the seller will always have to choose to accept. There are additional layers to consider. During your due diligence period, money will be placed into escrow—and you will be working with title insurance companies. These third parties will also have to be comfortable working with it.
Some Advantages
There are scenarios where the seller is a very motivated Bitcoin investor. Your offer may be highly unique to them. To work with your offer, they may be willing to negotiate down due to their desire to obtain cryptocurrency.
Cash offers can make the process shorter because there is no lender. Because of how valuable cryptocurrency can be, it is unreasonable to think that you have enough to where you don’t need a lender. The speed at which you can get to the closing table makes you attractive to a seller. And lastly, the value of the US dollar fluctuates, but it is nowhere near as volatile as crypto. That said, the seller is taking a gamble—which could benefit either side.
Auricchio Law Offices
At Auricchio Law Offices, we are committed to helping our clients fulfill their American dream—regardless of what currency they wish to use. Contact us to schedule your free consultation for professional and experienced legal counseling regarding buying commercial or residential properties.
Auricchio Law Offices
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