Miami, Florida, is embracing crypto technology and has planned a special crypto convention each year for hotels and restaurants. This forward-thinking move has prompted real estate agents to modernize their own thinking and processes to keep up.
How Crypto is Changing Real Estate
According to a Florida real estate agent who made two of the largest sales of her career through crypto, the real estate databases now have a field that shows whether the seller is willing to accept crypto as payment for the sale of the real estate.
There is a substantial similarity between real estate and crypto, scarcity and appreciation. Scarcity leads to appreciation. Unlike fiat currencies that depreciate over time, crypto increased due to limited quantities.
Crypto is more volatile than real estate but still a scarce asset; therefore, it will appreciate over time.
South Florida is considered the gateway to the Americas, and crypto real estate deals will help to facilitate international transactions. In addition, there are no exchange fees to worry about, which is good for buyers and sellers.
Another benefit of crypto in real estate transactions is that countries cannot limit or manipulate crypto like they can with conventional currencies. Crypto can stay true to its nature.
As frequent, sizable real estate deals close, such as the recent sale in Miami of a beach penthouse that sold for $22.5 million in crypto in June, more players will join the table.
The Future of Crypto and Real Estate
Many old-school buyers and sellers won’t be comfortable jumping into the pool of crypto just yet, especially with the coming recession and uncertainty about the economic future.
Even serious investors may see crypto as a fad that will eventually fade, leaving them holding nothing. However, in Miami, Bitcoin is surging, and multiple real estate deals are closing with crypto financing.
Real estate titans predict that other big cities like New York, San Francisco, LA, and Austin will take note and soon follow suit.
There is no doubt that crypto is changing real estate and quickly. If crypto sales continue, it will legitimize cryptocurrency and forever alter the face of large dollar transactions and how sellers and buyers interact. But, the question remains, how far will this trend push the real estate industry?
Some financial experts call crypto the “next generation of wealth,” and it will continue to alter the real estate market radically. For example, dozens of realtors in the Miami area are already changing their marketing messages to include accepting cryptocurrency in place of cash for property sales.
Time will tell how things actually evolve and the real future of crypto and real estate intersect.