Cryptocurrency is not new in your vocabulary. You probably already know that it is fast becoming the biggest thing in offering financial services across the world. The interesting thing is that it is still breaking new grounds.
One of the new grounds cryptocurrency is breaking is real estate investing. Everyone might not understand this, and that is why we have brought Winston Deloney to break things down.
Winston Deloney is an experienced real estate investor, serial entrepreneur and well-versed trader. In this post, he gives insight into how cryptocurrency could influence real estate investing.
For some, it may be hard to find any connection between cryptocurrency and real estate. Can you explain where the connection between the two is?
Yes, not everybody might understand this, but then it is straightforward. Cryptocurrencies are means of exchange for almost anything.
From pizza to electric cars, you can always use cryptocurrencies. Though it is still in its infancy, cryptocurrencies are fast making their entry into the real estate market.
Year after year, real estate properties are costing less in cryptocurrencies compared to traditional money. This and many more are the reasons there exist a connection between cryptocurrencies and real estate investment.
Since you have established a connection, is there a way cryptocurrency has been affecting real estate investing?
Just like how the pandemic is affecting the real estate markets, crypto is affecting real estate investing as well. Some of the ways this is happening are:
- It is eradicating intermediaries since cryptocurrencies transactions seem to be independent and don’t need the input of banks, broker or even lawyers.
- It is fast, reduces fraud and encourages transparency between the buyer and seller.
- It is secure because it is a decentralised system and easy to verify. This makes parties transact with more confidentiality and trust.
There’s been a hard crypto market crash recently. Do you think this has any effect on real estate investing?
The recent market crash might not have a direct impact on the real estate market. To a large extent, both operate independently. Cryptocurrencies only serve as a means of exchange, not a determinant of trends in real estate.
But then, no one can rule out the future direct impact of crypto on real estate. For instance, as crypto begins to gain grounds as a common means of exchange, hard crashes like this can affect real estate investing.
Has there been any time you believed that a change in the market trend of crypto would affect the market trend in real estate?
Yes, there has been. Even as things are currently operating, I am still sceptical about a direct impact. But then, there is always room for assumptions. And I assume that there will be a future impact on the real estate market when the crypto market is affected.
So, I believe that there will still be some level of deeper connection than we currently have.
Is it ever possible to finalise real estate deals with cryptocurrencies?
Yes, it is possible. It is already happening with people who are taking charge of digital currencies.
People are beginning to complete their real estate transactions using cryptocurrencies. This kind of arrangements holds many benefits for the parties.
For one, it eradicates intermediaries and real estate fees. It is also fast and encourages transparency between the buyer and seller.
In my case, I mostly purchase my rental properties by using both traditional cash and crypto. I focus on rentals since it has proven to really build long-term wealth.