How Can Real Estate Industry Benefit From Cryptocurrency?
TGFLIP MARKETING AGENCY
November 26, 2021
Content:
Introduction to cryptocurrency
Massive growth in recent times
Benefits of blockchain technology
How can the real estate industry benefit from it?
How can an individual investor benefit from it?
Conclusion
1. Introduction to cryptocurrency
Cryptocurrency is a vast concept that is gaining rapid popularity in recent years. According to Investopedia:
“A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.”
[Source]
Cryptocurrency (or generally referred to as crypto), is basically a digital asset that can be exchanged for goods or services, can be invested in, or traded. It works on a decentralized network that allows it to operate without the intervention of central authorities. This decentralized network along with blockchain technology(discussed later in this blog) develops visible transparency for cryptocurrencies.
In recent times, cryptocurrencies gain momentum under various new ideas. Coming up as a method of secure online payments that can happen within seconds across the globe, now crypto has targeted various other industries.
For instance, Bitcoin, the most famous and valuable crypto, despite its volatile nature has targeted the long-term investment portfolio. Similarly, Ethereum, another popular crypto, has provided a blockchain network for new cryptos, companies, governments, etc.
2. Massive growth in recent times
With big names such as Elon Musk, Tim Cook, and Jack Dorsey talking and considering cryptocurrency as an alternative payment method, the growth and interest have peaked. Daily life companies like Burger King, Microsoft, KFC, Pizza Hut, etc have entered the arena with the acceptance of crypto for payment. This indicates the bright and wide future of virtual currency.
Along with the instant payment services, people are considering cryptocurrencies as an investment option. The enormous crypto surge in the past couple of years resulted in a huge number of crypto millionaires. Although crypto is volatile, people are opting for taking risks over it.
“It is estimated that the global user base of all cryptocurrencies increased by nearly 190 percent between 2018 and 2020.”
[Source]
The transformation to digitalization and the virtual world boost the idea of digital currency. Therefore every industry, regardless of its nature, can benefit from blockchain and cryptocurrency.
3. Benefits of blockchain technology
Better Security:
Blockchain provides a gateway to safe and secure transactions, deals, and data storage. Its ability to create an unalterable ledger to store information supports its approach toward end-to-end encryption. Furthermore, the storage of data is decentralized, which means not controlled by any central party. This decentralized storage feature allows it to be more independent and safe from system hacks.
Trust:
Blockchain technology is capable of generating trust between the dealing parties, which ensures a hundred percent safe deal. This trust is developed based on unchangeable records offered by blockchain. Trading and exchange of cryptocurrencies is the perfect example of trust, where the participants do not know each other but do trust the system.
Reduced Cost & Work:
Blockchain efficiency cuts the cost and workload for organizations. This is due to its automatic nature. It also streamlines the whole financial process as there is no middle party involved to provide clearance.
Instant Traceability:
Blockchain provides a key benefit of instant traceability. You can trace the record within seconds without any interruption. This also shows the control over data and how you can manage it.
4. How can the real estate industry benefit from it?
Cryptocurrencies have managed to create an impact on the real estate industry by proving to be a safe, secure, and instant payment method. Additionally, the ledger system provided by blockchain technology streamlined the whole process of purchasing and selling real estate.
Smart Contracts:
Blockchain eliminates the intervention of the third party for contracts and dealing. These contracts serve as immediate paperwork between the parties. And the best part is they are secure and unalterable. Blockchain smart contracts are already in use in the real estate space due to their convenience. These contracts are stored on the ledger visible to all, excluding the doubt of interruption.
Instant Transactions:
Speeding up the pace of real estate transactions, blockchain has managed to provide a secure solution. Blockchain has enabled realtors to reduce the common fraud and risk factor. The whole transaction process is so instantaneous that there is no chance for the delay usually caused by paperwork.
Property Search System:
Blockchain can be used to create an efficient property listing and search system. Currently, most of the property search systems are either subscription-based or sharply focused on a sector. With a vast approach such as blockchain, property listing can be connected across the globe, also property search could be enhanced through a detailed network of research.
5. How can an individual investor benefit from it?
Here is a clear fact, investment in the crypto market has popped up as an asset-building strategy. Although the general market is volatile, it is still worth considering. Crypto offers investors to diversify their portfolios even with a minute investment.
But along with all its benefits, the investor needs to do his homework. Researching the market, and educating about the factors that control its growth is essential. Know your goal, stick with a plan and get your direction clear before starting.
6. Conclusion
Blockchain and cryptocurrency appear to be a lot beneficial for the real estate world. From speeding up the process to securing the procedure, this can be revolutionary for realtors. It is obvious that everything has flaws but visibly, this decentralized ecosystem can be more helpful than being disadvantageous.
In recent years, along with every other industry, real estate has also experienced a transformation to digital networks. Keeping up the transformation, blockchain can boost the effectiveness of real estate markets.
Disclaimer:
The information provided is not intended to be a source of advice or credit analysis with respect to the material presented, and the information and/or documents contained in this website do not constitute investment advice. The ROI varies from case to case, and TGFLIP Marketing Agency would not be responsible for any loss carried out regarding this information.
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