Despite their volatile nature, Bitcoin and other cryptocurrencies are seen as having the potential to power the digital world. Gone are the days when money was needed for everything. Sending money or buying a product has become easier and faster thanks to globally flexible and advanced digital payments. Due to the popularity of cryptocurrencies, NFTs and other digital tokens, many companies in countries are starting to warm to these virtual values. Some countries have even gone so far as to legalize cryptocurrencies. Some big brands like Gucci, Microsoft, Starbucks and others are now accepting these cryptos as payment to buy their products, while some organizations like Twitter are working to pay their creator’s salary in cryptocurrencies. That said, what if you could buy your dream home or real estate using these digital currencies?
Cryptocurrencies, NFTs and other digital assets have wide scope in the real estate sector. Web3 has opened the doors to many new digital opportunities and many governments are exploring the blockchain industry for real.
Ashish Acharya, founder props “Web3 opens up new opportunities for the real estate industry. Governments are looking into using blockchain to store land records. Tokenization enables fractional ownership for many. Digital land is sold in the metaverse. But are we ready for it? Widespread use of this technology in India is highly assured. It seems far fetched due to non-existence and limitations associated with security tokens.
The problem with the widespread adoption of Web3 in the real estate sector is that currently the platform is still very new and complex. His adaptability will be key going forward.
Vineet Kandare, CEO and Founder, MyFundBazaar, said, “While Web3’s connection to the real estate market is unclear, the connection between an intangible and a strong asset like Bitcoin may raise questions for many. As the pandemic continues to grow, Web3 has changed the way one buys and buys in real estate in general. It is set to make a huge impact.
Explaining the benefits of blockchain in real estate, Abhijit Shukla, CEO and Director of Taraality, tokenized real estate, allowing investors to use real assets to create portfolios that can be easily leveraged on the blockchain. It also opens up real estate investment to low-net-worth individuals. This is because introducing assets – in this case property – makes fractional investing possible.
For example, an individual who would never be able to afford a $250,000 investment property apartment may be able to purchase a fraction of that amount, which entitles him or her to a fraction of the ownership that he or she can trade. at any time an equivalent fraction of any other property. Shukla highlighted that an AI platform allows multiple investors to buy parts of rental properties for as little as $50 each.
Tarity’s CEO also shed some light on the controversies surrounding Bitcoin and other cryptocurrencies that create panic among investors and avoid using these digital tokens.
Shukla said, the controversy surrounding bitcoin and other cryptocurrencies makes some wary of using them. However, people who see their potential are finding new ways to use cryptocurrencies to transform their financial practices.
Shukla further stated that some fintech companies are addressing the issue of price volatility based on the loan amount, where if the ratio is below a certain percentage such as 65% then a margin call is made. If it drops to 30%, the assets are released and their value is stored in USD. It is important to note that transactions involving cryptocurrencies do not have to be entirely cryptocurrency-based. While some transactions may be done entirely using cryptocurrency, both investors and sellers may use or receive cash as part of the payment.
Shukla added, “It is important to know that government agencies and third parties involved in any agreement may require financial payment for their services.”
Nevertheless, buying a property or a home can be seen as less time consuming and seamless with NFTs.
“By developing NFTs into deeply versatile tools, proprietary technology that includes a legal framework that allows NFTs to stand in for ownership of assets and record purchases along with legal documents on the blockchain. A daunting task that once took weeks can now be completed almost instantly,” Kandare said.
Additionally, DeFi cryptocurrencies or fiat currency is emerging as a perfectly intuitive way to buy real estate online.
According to Khandare, with the younger generation of buyers who grew up online and use the website as their marketplace, they can fully understand buying real estate online using DeFi, cryptocurrency or fiat currency. Where asset ownership is shared, NFTs can be used to obtain loans from lending platforms. However, investors should be aware that the rules may change over time as this investment becomes more popular. Also, hiring a lawyer with expertise in blockchain technology will help them with such transactions.
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