Buying a property in digital currency may sound like a futuristic fantasy, but it’s quickly becoming a reality. Early crypto currency investors, such as those that bought into Bitcoin early on (called “crypto whales”), have been seeking ways in which they can invest their newfound wealth, and real estate is at the top of the list. In fact, according to the Wall Street Journal, crypto millionaires have made some of the biggest real estate purchases in the past year.
These crypto whales are commonly targeting luxury homes and trading in their crypto to finalize the purchase, but it does make one wonder if this marks the beginning of a new era in real estate. Avi Dabir, an executive at FTX cryptocurrency exchange, recently remarked on the seamlessness of crypto transactions and how they could be done anytime, anywhere; unlike with banking transactions that require processing during a bank’s business hours.
Before you think the only way to buy a home with crypto is by trading in coins for USD, you’ll want to know that people are actually purchasing properties with their currency still in a crypto. Architectural Digest cited a penthouse in Miami Beach, Florida, that was purchased for $22.5 million in cryptocurrency. Clicking through to the article will show you the stunning property and fantastic views.
Investing in Digital Real Estate?
The term “crypto” isn’t just limited to its reference to Bitcoin, Etherium, and other currencies. At least not in the world of real estate. Does the term “Metaverse” ring any bells? People are starting to invest in real estate in a digital universe known as the Metaverse. Business Insider discusses Snoop Dogg’s “Snoopverse” where a plot of land will set you back $450,000 and Decentraland, where a buyer paid $2.43 million for a parcel of land.
While buying real estate in Bitcoin seems like it could become a common occurrence in the near future (or at least not an unusual one), buying crypto land has people a bit more hesitant. Specifically, because of concerns over retaining value. Real-world resources have value derived from sources that don’t exist in the digital world. No one can reasonably predict a rise in value, or even the continued existence of your investment, on a digital platform the way we can with a physical asset.
The Warren Group Can Help Usher in the Future of Your Company
So, what do you think? Will your team be accepting payment in cryptocurrencies any time soon? Will you oversee the purchase of a home using Bitcoin or other digital coins? What do you think about the viability of crypto real estate?
Regardless of how digital coins and assets evolve in the future, it’s important to stay in the know on the current market conditions in your area. You can invest in your own digital platform, one like The Warren Group’s Mortgage MarketShare Module, to track trends in your target area and gain real-time (real world) market insights for your area. While you’re at it, check out all of our other available Data Solutions and then reach out to a Data Specialist when you’re ready to take your strategy into the future.