Pros and Cons of Buying Real Estate with Bitcoin
Bitcoin is a digital currency; it is a decentralized ledger that facilitates digital transactions. It is the first of its kind, a decentralized peer to peer payment that is powered by a strong encryption and network of users and computers with no middlemen or central authority. In the users perspective is like cash for the internet. With bitcoin you can buy things using it or you can choose to accept payment with it. Having been created in 2009 it has expanded it uses having a lot of benefits and has a share of its disadvantages. They are created by people called the miners; they use their computers to come up with complex maths to ensure security for the money.
With its growth the questions for the people in real estate still remains, can you purchase a real house using bitcoin? The answer for many people will depend on the pro and cons of using bitcoin. But it is important to note that many real estate firms are accepting bitcoin as a means of payment. Below are pro and cons of using bitcoin.
Bitcoin ecosystem is rapidly evolving with additional innovations, service providers, merchant space and users. All this stakeholders can attest to the following advantages. The lack of intermediaries in transactions using bitcoins, such as banks, means no transactions fees incurred. Though there are some little charges from digital wallet companies and other providers. The transactions are anonymous so it is hard to track the person making it secure in one part. The transactions are very secure since bitcoin is based on a very strong encryption. Since it is a decentralized peer to peer network, there are no regulatory authority and government to control bitcoin. It is relatively simple, easy and straight forward to transfer money from person to person even internationally. This makes it easier to buy a real estate using bitcoin from all locations internationally.
Cons of using bitcoin
They are reasons as to why you should not use bitcoin. Which are losses; the traditional financial products have a very strong consumer protection unlike bitcoins. If you lose your money there are no intermediaries to help you track or find them. You end up making loses, if you buy a house and send it to the wrong person or a conman, there is no way of possibly getting it. Secondly, there is lack of applications; bitcoin is mainly known for drugs and gambling making it a concern of how well it can do commercially. You will wonder if it is applied in many fields, hence uncertainties of using it. It is highly volatile and it is not universally accepted despite is growing number of uses. It has a limited scaling in speed of downloading applications and mainly used for financing immoral and illegal activities.
It is a growing platform of virtual money and it would be good to try it in making transactions in real estate but great caution should be taken not to fall into any traps and incur loses that cannot be retrieved.