How does Bitcoin Help Boost the Real Estate Industry
(Photo : Muhammad Rizwan)

Real estate is one of the oldest industries in our modern world. Over the years, it has acquired a consortium of bureaucratic processes that have made the exchange of property and funds bulky.

However, amid a global digital revolution, specifically the wave of Bitcoin, the way we relate with real estate is changing. 

In this article, we'll discuss Blockchain in real estate, particularly how Bitcoin is boosting the industry. 

1. It expands the real estate market 

One of the most significant ways Bitcoin boosts the real estate industry is by expanding the market. Traditionally, if you wanted to purchase a new piece of property, you had to look through listings, attend various open houses, and discuss favorable terms with the owner. After that, you would then need to prove your financial buoyancy to a lender who could back you in your purchase. The result is that purchasing a new rental property is a tiresome task that requires weeks, perhaps even months of fortitude. 

However, when Bitcoin and Blockchain enter the picture, it massively streamlines the process. So buyers and sellers can trade directly, exchanging deeds for bitcoin. Alternatively, they can also change them like stocks by tokenizing real estate assets. Either way, it makes investing in real estate cheaper and less time-consuming. That inevitably expands the marketplace by making it more inviting to new investors. 

2. It eliminates the need for third-party intermediaries 

As briefly highlighted in the previous point. Introducing bitcoin to the real estate industry eliminates the need for third-party intermediaries. Who are these go-betweens, you might be wondering? They include everyone except the buyer and seller in a sale. So the lender, the agent, lawyers, and so on stand as middlemen that we have long considered necessary in the real estate market. However, the adoption of Bitcoin is gradually altering or entirely phasing out their role. 

After all, why go through a bank when you can pay for a property via peer-to-peer? And why hire an account when all your transactions are already stored on the Blockchain? Consequently, buyers and sellers can save more money and enjoy more efficiency. 

3. It cuts down transaction costs

Next, Bitcoin boosts the real estate industry by cutting down transaction costs. When there are many intermediaries, each intermediary gets a slice of the action. Anyone making a budget for purchasing a home has to consider loan interests, inspection fees, agent fees, taxes, and other similar costs. Did you know the people making the most profit out of real estate are the corporate finance institutions? Right after the banks, the most lucrative careers in the industry are the realtors and brokers, superseding the landlords. In some instances, real estate lawyers, and even home inspectors, can comfortably earn six-figure incomes by acting as intermediaries.

Thus, by using Bitcoin, you can eliminate or at least drastically reduce the cost of these middlemen. 

4. It reduces fraudulent activities

When you decide to invest in something as significant as real estate, you must do your homework. You need to ask questions, read reviews, and do intense research before conducting bùsiness with various professionals. After all, the last thing you want is for someone to defraud you for your hard-earned money. So at the end of the day, the responsibility of finding trustworthy parties falls to you. 

However, when you trade with Bitcoin, that burden instantly becomes lighter. Modern security systems and verification processes make it harder for people to defraud others. Many trading platforms will hold the buyer's money in escrow till the deal is complete to prevent fraudulent scenarios. 

5. It encourages further investment 

Bitcoin encourages more people to invest in real estate by making it more accessible. Eliminating third-party intermediaries cut down transaction costs and makes it cheaper. Besides removing high go-between costs, converting the real estate into tokens makes them easier to sell off and acquire. So instead of looking for one buyer that can afford to purchase an entire piece of land, sellers can sell off bits of your property as tokens. Buyers can then easily acquire these tokens and earn interest through fractional ownership. 

Also, modern technology enhances security and makes buying into realty safer. Thus, leaning on the decentralized system of Bitcoin makes the real estate industry more transparent. 

Conclusion 

As Bitcoin gradually grows more legitimacy in the modern world, we can reap more fruits of its benefits. Although this article highlights how Bitcoin can potentially transform the real estate market, it is not far from reality. Many landlords and investors already trade Bitcoin as fluently as they exchange fiat currency. 


However, Bitcoin is not without its drawbacks, so you might need some help understanding the intricacies. If that is the case, don't hesitate to ask. Consult a property management company if you are considering investing in real estate, and they can guide you through. 

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