December 20, 2017
As long as cryptocurrency is accepted as legal tender, homes, and eventually commercial and industrial properties, will continue to be purchased in this way. While it is difficult to say which cryptocurrency will reign supreme, it is clear that Bitcoin or another medium will play an increasing role in the real estate industry, and real estate industry experts will need to familiarize themselves with the fundamentals to remain competitive in their field.
While the medium of cryptocurrency is still up for debate, blockchain technology is here for the long haul. One of the most exciting possibilities of blockchain technology is the fact that information that once took precious time to secure and verify could be instantly and easily accessed. This means that property titles and other real estate transaction essentials could be secured in the blockchain, thus speeding up the title and mortgage process.
With over 500 members from around the world, the International Blockchain Real Estate Association (IBREA) met in Newport Beach, CA this spring to work collaboratively on mainstreaming blockchain technology. Their ambitious goals, which include the creation of “open source, nonprofit, secure, and scalable” universal platforms for title, property, and digital deeds would effectively transform and secure real estate transactions. Once the IBREA complete this project, they plan to set and promote standards specifically for the use of cryptocurrency in real estate transactions, as well as best practices for the escrow process, which will also need reform.
One thing that was noted in Miami, one of the few cities where Bitcoin is commonly used in real estate transactions, was the newfound reach of alternative forms of currency, with increasing interest from investors and buyers worldwide, including Canada, Asia, South America, and more. Real estate professionals in other cities are taking note, and beginning to look more closely at the possibilities that come with the use of cryptocurrency. While they may not encounter blockchain and Bitcoin technology now, if IBREA achieves its goal, it will be vital to the reputation and career of each person to be able to speak intelligibly about the subject and understand how to conduct these transactions.