Despite Bitcoin being created in 2009, the ever-increasing ubiquity of all things “crypto-related” has taken what used to only be discussed in tech symposiums and made it an everyday topic of discussion for everyone from novice traders and speculators to some of the most advanced,
cutting-edge companies the world has to offer. The breadth of applications that would benefit from Blockchain technology is so far-reaching that people are exploring its potential utility in a unique way daily. And as far as the depth is concerned, technologists and futurists alike have stated that we’re hardly scratching the surface.
cutting-edge companies the world has to offer. The breadth of applications that would benefit from Blockchain technology is so far-reaching that people are exploring its potential utility in a unique way daily. And as far as the depth is concerned, technologists and futurists alike have stated that we’re hardly scratching the surface.
But what does digital currency – that is the creation of complex mathematical equations – have anything to do with Real Estate? Good question. But before, I answer, let’s discuss some of the basics. Cryptocurrencies are digital currencies whose transactions are secured using a decentralized network of computers. Every cryptocurrency consists of its own network of a community of people from around the world called “miners.” And by validating the cryptocurrency transactions on each respective network, the miners ensure the integrity of the distributed ledger otherwise referred to as “the Blockchain.” Aside from the decentralized alure of cryptocurrency, it is the fact that cryptocurrency cannot be easily manipulated, nor can it be easily counterfeited that increases the draw. For obvious reasons, in a world where leaders and politicians can seemingly “print” as much money as they desire, the adoption of cryptocurrency in our marketplace is
gaining traction and picking up momentum.
There are many different cryptocurrencies. In fact, there are thousands of different cryptocurrencies and usages thereof; with some of them being used purely as currency or a storer of value and others being used to traverse and transact in a “metaverse” like Fortnite. But the original Bitcoin remains the most popular and widely used in real estate transactions. For quite some time, consumers have been able to use their Bitcoin – and other currencies – to purchase goods of all types. However, what most do not know is that the usage of cryptocurrency to transact with real property is already here and has been for a while. Believe it or not, the first registered cryptocurrency transaction involving real estate took place back as early as 2014. But we are now far beyond accepting Bitcoin as a form of rent. Here in California, home sales, rental payments and mortgage refinances are just some of the real estate transactions consumers can complete with digital currencies.
In follow-up articles, the attorneys of Attorneys Real Estate Group, APC will continue to explore the numerous types of real estate transactions being consummated utilizing the blockchain and cryptocurrencies, along with the industries that may be adversely impacted as more and more adoption of this technology is embraced.
The information provided in this article is strictly that; informative. It is not intended to be used
or taken as legal or investment advice. Each fact pattern is unique and there are always nuances
that must be taken into consideration and analyzed prior to a complete legal analysis.
Should you find yourself in need of such analysis, or analysis regarding any other real property
or mortgage-related matter, the attorneys at Attorneys Real Estate Group, APC are here to help.
or taken as legal or investment advice. Each fact pattern is unique and there are always nuances
that must be taken into consideration and analyzed prior to a complete legal analysis.
Should you find yourself in need of such analysis, or analysis regarding any other real property
or mortgage-related matter, the attorneys at Attorneys Real Estate Group, APC are here to help.