Bitcoin, Ethereum and cryptocurrency in real estate transactions are increasing across the U.S. and Florida was one of the first major examples of this trend.
In December 2017, a Bitcoin enthusiast sold their house in Miami and completed a successful Bitcoin real estate transaction.
In February 2018, Title Partners of South Florida closed its first Bitcoin real estate transaction and we’re seeing more and more real estate being purchased, listed and sold with Bitcoin, Ethereum and other cryptocurrency as they become more popular and socially acceptable.
Would you like to accept Bitcoin, Ethereum or other cryptocurrency for your real estate sale or use them for the purchase of real estate in Florida? Give us a call at 954-566-6000 to discuss your options.
Why Is Bitcoin The Most Popular For Real Estate Transactions?
Simply, Bitcoin is the most popular cryptocurrency. It grew in popularity and its value rose from $0.003 in 2010 to almost $20,0000.00 with a market cap of over $330 Billion in December 2017.
Bitcoin is a peer-to-peer electronic monetary system without a central regulatory body. Due to its wide acceptance, many states have crafted legislation for tax purposes and have referred to it as digital property or a commodity. This means you’ll need to pay capital gains tax when your property is sold through a Bitcoin real estate transaction. We at Title Partners of South Florida strongly suggest you consult with your CPA or accountant prior to buying or selling real estate with Bitcoin, Ethereum or other cryptocurrency.
All bitcoin transactions are encrypted. To start making a real estate transaction with Bitcoin, you need to have a digital wallet. You can typically fund it with PayPal or with your credit card through a mainstream bitcoin broker. However, some banks and credit card companies have banned their users from making transactions using cryptocurrencies like Bitcoin. There is much speculation as to why this may be happening, including possible concerns from banks about liability and disruption in their industry. Before choosing to fund a digital wallet, be sure to check with your financial institutions to ensure all financial transactions will go smoothly.
How Are Bitcoin, Ethereum and and Other Types of Cryptocurrency Used To Purchase Real Estate?
Bitcoin and other popular cryptocurrencies like Ethereum are being used to purchase real estate all over the world. From home services to purchases and sales, the industry is exploring various ways to use Bitcoin, Ethereum and other cryptocurrency.
Property buyers are now paying with Bitcoin, Ethereum and other cryptocurrency while sellers have the option to accept the digital currencies directly or have them converted into USD.
The power, openness, and security of the blockchain is also being explored by stakeholders in the industry as a viable option for recording property titles and transfers during the sales process.
Is Bitcoin, Ethereum and Other Cryptocurrency Commonly Used for Real Estate Transactions?
The use of Bitcoin is attracting more attention, and more sellers are now willing to accept it in place of cash, particularly those who are cryptocurrency investors. However, the use of Bitcoin, Ethereum and other cryptocurrency by title companies and other vendors involved in a real estate transaction is still very uncommon. In fact, very few title companies have the experience and understanding of how cryptocurrencies work. Therefore, they’re not always able to handle the intricacies involved in a transaction that’s paid for using Bitcoin, Ethereum or other cryptocurrency.
What Companies Are Supporting It?
The acceptance of Bitcoin, Ethereum and other cryptocurrency is becoming more common all over the world. Today, more than 100,000 merchants worldwide accept this digital currency as a form of payment for products and services, including well-known companies like Virgin Airlines, Microsoft and WordPress. NASDAQ has also announced plans to allow Bitcoin futures to be traded on its electronic exchange. This list also includes Title Partners of South Florida, which has created several options for accepting Bitcoin, Ethereum and other cryptocurrency in a real estate transaction, including peer-to-peer transfers.
Title Partners of South Florida: Your Bitcoin, Ethereum And Cryptocurrency Real Estate Closing Specialist
Bitcoin and cryptocurrency like Ethereum will continue to show promise in the real estate industry. Purchasing real estate with cryptocurrency has the potential to reduce the time required to close a transaction. Also, cryptocurrencies like Ethereum allow for smart contracts, and cryptocurrencies in general can improve the security of the transaction. Most sellers would prefer buyers who can provide secure funds within a short period of time.
Title Partners of South Florida offers a unique service for Bitcoin, Ethereum and other cryptocurrency real estate transactions. Our team is pioneering the processing and closing of real estate transactions involving cryptocurrencies, and we have successfully closed real estate transactions involving cryptocurrency. Unlike most title companies who don’t have experience handling transactions with cryptocurrencies or navigating the complexities of a cryptocurrency transaction, we at Title Partners of South Florida have the expertise necessary in helping you navigate and close a cryptocurrency real estate transaction successfully.
Contact Title Partners of South Florida Today
For more information on best practices for using Bitcoin, Ethereum and other cryptocurrency in real estate transactions, contact us today. If you’re interested in partnering with us for title insurance or closing needs, visit our online quote page or give us a call at 954-566-6000.