BITCOIN AND REAL ESTATE

A fundamental shift away from the traditional financial system and economy is already in the works, a shift that has been ongoing since the 2007/08 housing and economic disaster and we thank Natoshi Nakamoto, creator of bitcoin for bringing about this very important and significant change.

For generations, we have watched our governments’ fiscal abuses, recklessness’s, and irresponsibility’s. It’s manipulation of our currencies and economies causing economic disaster after disasters, then leaving us the Tax Payers with mountains of generational debt to pay. This is precisely why bitcoin evolved. To have a currency and money system that governments can’t manipulate nor control is a welcoming reality for those of us who believes in the future and power of technology and money. 

It is amazing how that only two years ago bitcoin was unheard of. Now, over 65% of the US population have heard of it and about 5% had invested in it. To put this into perspective, this 5% translates to 16.35 million people. This means that 16.35 million people in the US owns bitcoins. Imagine what that would look like on a global scale. 

Bitcoin and digital currencies are still in its infancy so there is still a lot of bitcoin growing to do. So, don’t believe for one moment that this is a FAD that will go away, or die. Just think back to the 80’s with the internet, the 90’s with the Web1.0. People were slow to adopt them until they became main stream. Now, we have the WEB 3.0, the future of technology.    

A new digital economy is being built around digital assets through the block chain technology and it's been underway since bitcoin came to market. Many industries including the government are already using the technology. The entire ecosystem, is evolving in a very profound way where eventually every institution will no longer operate the way they previously did.

Bitcoins price has been hovering around the $6,300 bench mark for a while now and we have to thank the governments for that. Their enforcement of unfavorable and vague legislation and policies and their rather odd classification of bitcoin as a commodity when it is actually a currency. This does not help market stability at all.

Bitcoin prices will rise again. The signs are already showing. The biggest sign was yesterday when the news came out that China has now removed its bans on bitcoins. This is a very powerful action by the Chinese government. With China being one of the main countries for bitcoins, the impact of this is going to be significant.  

Fast forward to Real Estate

Real estate will be a beneficiary of bitcoin real estate. This will come sooner than we think. I predict that the next price rally into the $7,000 base price will bring about the rise in real estate purchases, but such rise will not be an exponential one and here’s why. Currently, the only way bitcoin real estate is transacted is through an “all cash” type transaction, where bitcoins are converted to dollars. The issue we have here is that very few bitcoin holders can purchase for “cash”. So, this market has limitations.

Now, let’s view the other side of the equation, the number of bitcoin owners that holds just enough bitcoins for a down payment. According to Reddit the average wallet holds about 21 bitcoins. That’s more than a 20% down payment on a $500,000 home if using $6,000 as the bitcoin base price. This is very significant. This means that this market sector for bitcoin real estate has the potential for exponential growth. Right now, it’s dormant. The question is, how do we wake it up?

ANSWER? LENDING.

Lenders have avoided lending in this sphere because of the extreme price volatility of bitcoin and cryptos. It is suicidal to lend in this sphere right now with all this volatility. If we can remove the volatility, we remove the risks. When that happens it will open the flood gates to the crypto real estate market in a very profound way. The effect will be global. So, lending is KEY to waking this market sector up.

The Challenges.

Currently, there is not a platform that can legitimately and efficiently process bitcoin real estate transactions. Past and present transactions were, and are still performed in a “wild, wild, west” sort of fashion, where buyers take pictures of themselves in front of their computer screens to evidence their ownership of the wallet. Adding to that challenge is the absence of an exchange platform that can convert and release funds sooner as well as in a lump sum. Coinbase, the largest exchange has limitations, so are others. Moreover, Escrow and Title companies are still very reluctant to service bitcoin related real estate transactions while there are still risks associated with them.

The Solution.      

Now let us consider a situation where, the Buyer can sign onto a qualified and federally licensed “platform”. Where they can open an account and upload their personal and wallet information into the system. Where the system can then verify the Buyer and the buyer’s funds, plus making certain that they have enough to cover the transaction, and transaction fees or other fees attached to the transaction by the escrow company or lender. Where the system can run the KYC, & AML screening, and if the Buyer passes, the system would spit out a “Wet P.O.F” (proof of funds) together with the letter stating that the Buyers funds came from legitimate activities and sends that to the lender and escrow.

A “platform” where Agents, Escrow companies, Title companies, Sellers, Lenders, and anyone involved in a transaction can sign up for free and create their own accounts, so they can all be connected to a peer to peer network, where payment documentation and processing can seamlessly take place and shared with full transparency.   

A platform where everyone in the transaction is left alone to perform their transaction duties the way they always did. NO CHANGES. A “platform” that once the escrow and the lender sends the demand letter for financing, it would re-verify the crypto funds before  converting them into dollars then sending it over to escrow. A “platform” where when escrow closes, escrow can, from within the platform, seamlessly disburse the funds to all parties concerned at no costs. This is the beauty of the “platforms” peer to peer network. Now, also consider this. When you have a broker to broker referral from out of state or country, you will be guaranteed your referral payment because once you sign up for an account the system records and controls the account and the payments.     

THIS IS THE FUTURE.  “ARE YOU READY FOR IT?

SO, REALTORS AND LENDERS JUMP ON BOARD THE "CHANGE" TRAIN BECAUSE IT’S ABOUT TO LEAVE THE STATION