In light of acquiring property using Cryptocurrency, Bitcoin is creating ripples in unexpected places. Today, we look at crypto in real estate, how types of property transactions are shifting, and if it was even possible to buy a part of an island using Crypto.
Europe Leads the Crypto Estate Market
Europe is currently at the top of the hottest market when it comes to acquiring properties using Cryptocurrency. According to Unicorn founders, Europe is at the forefront of exchanging these hot-class assets for Crypto.
At the top of the food chain is Spain, which has circa 289 real estate properties for sale via Cryptocurrencies, while Portugal comes 2nd with over 130 properties listed for sale.
Tokenization
Noticeably, a large portion of global wealth is tied to illiquid investments, many of which often trade at a loss. It is safe to say tokenization is the new ideal. It involves converting these poorly marketable assets through Cryptocurrency and Blockchain technology into digital tokens for seamless transactions.
According to the Boston Consulting Group, this market could hit an enormous $16 trillion (€14. 85 trillion) by 2030. This is especially true when the levels of growth starts to attract the attention of investors as well as regulators.
While the US struggles to coordinate proper regulation for these digital tools, Europe is ahead of the curve. Basically, new laws for 2025. Investors may have to re-evaluate the actions of tokenizing real-world assets like real estate, valuable art and equities.
At $500 million, is a recent ground-breaking property deal in the Bahamas’ Long Island and Andros Island with payments made using Unicorn.
Risks and Rewards
Investors should remember that just like any other investment, Cryptocurrency isn’t any different as it’s very volatile. The UK’s Financial Conduct Authority highlights that all Cryptocurrencies bear high risks and are only speculative investments. Crypto can be very unpredictable and may change in the blink of an eye from a mere post from an influencer.
The Future of Property Deals?
Finally, as we take a look into the future of real estate and crypto, one thing seems very apparent: Cryptocurrencies and Blockchain technology will reshape most, if not all, aspects of property transactions. Through the tokenization of property, investing in real estate assets might become less rigid and more accessible to people worldwide.
But as with any innovation, it is important not to get too excited and overzealous; simply put, ‘Never invest money into Crypto that you can’t afford to lose.’
As we watch this space evolve, one thing is for certain: Cryptocurrencies and Real Estate present a future that may change the way people view property ownership.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used for legal, tax, investment or financial advice.
