If there is one thing people have always struggled with, it is understanding what makes Bitcoin so appealing to the masses. There is no easy answer to this particular question and if there is anything we can tell you for sure, it is that it varies for everyone. While there are people who trade in Bitcoin just because it is fun, there are also people who view it as a kind of financial freedom for themselves. The bottom line is that people are more and more drawn towards cryptocurrency as it is gaining traction in the market. That’s why selling real estate and property in Bitcoin is now becoming a rising trend.
Bitcoin vs Traditional Financing
What makes Bitcoin so different to traditional financing options is that it is highly misunderstood and, to an extent, underestimated. Unlike payment methods such as PayPal, Bitcoin does not lock your finances in itself if you make a mistake. The biggest misconception people have about Bitcoin, however, is that it can only be used online. The facts are really quite different. Several real locations have now started accepting Bitcoin as a valid payment option. The biggest hassle with trading in Bitcoin was figuring out how to best spend it, but even that has been made easier with the help of Bitcoin debit cards that everyone can now use.
Real Estate Listings and Bitcoin
When the cryptocurrency world filled the market cap of $92 billion in July of 2017, everything changed. While there were only a few hundred people interested in Bitcoin at the beginning, everyone’s interested now. Ever since then, the use of Bitcoin has become more and more common all over the world. Recently some real estate went up for sale and, like any other listing, it too had a price stated. But what was so shocking was that it was listed in Bitcoin instead of US dollars. This real estate situated in Middletown of New Jersey was listed for sale for $2.15 million. Let us tell you, Middletown has been rated as one of the best places to live in the United States by many and to see real estate listed in Bitcoin currency just goes to show much traction the cryptocurrency world is gaining.
This wasn’t the first piece of real estate to be listed in bitcoin currency. The first property ever to be sold in bitcoin was a 1.4 acre home in Lake Tahoe of California in 2014. It was then sold for a total of 2,739 Bitcoin, which at that particular time amounted to $1.4 million.
What Could Go Wrong?
There are some drawbacks to selling real estate in Bitcoin. The massive fluctuations that occur in Bitcoin within hours make it a highly unstable currency. Buying a house for a particular price may seem like a good idea now, but 10 days later, it may seem like a rip-off.
Bitcoin started its new year with a rather dramatic start and incredible fluctuations. In January 2018 alone, the market suffered such a plunge that markets such as South Korea and India issued threats to pull out if the rates continued to drop. This same currency passed the $20,000 mark in December of 2017 which made a lot of investors a lot of money, only to lose it not more than a month later as Bitcoin fell as deep as $7,000 and below.
“The ones who are getting there because they’ve been sold the bill of goods, they believe, and these are not stupid people, many of them are smart people, they’re not naive even. It’s just human nature to jump on the bandwagon, it’s what every great bubble is made of and they’ll call this the greatest bubble of all time. The ones at the end of the day that typically get slaughtered the most are the average mums and dads.”
Jordan Belfort, the inspiration behind the movie The Wolf of Wall Street
Volatility of the Crypto Market
Bitcoin prices are stabilizing a little currently, as the current updates show the currency to be around $9,321.74, proving a stark 7.39 percent rise today as of writing this article and are estimated to cross $10,000 by the weekend. But all of this doesn’t change the fact that the currency is extremely volatile and can crash at any given time. These fluctuations only prove that Bitcoin is not stabilizing anytime soon, which makes this a bad news for old and new investors.
The idea to invest in Bitcoin may seem interesting but if I were to tell you the truth, the time to invest was years ago when the currency was still new. It is expected that as Bitcoin reaches $25,000, the currency is expected to crash. Playing with a few hundred dollars is all well and fun but if you are thinking of investing in Bitcoin or buying a house in Bitcoin, I would suggest waiting and let the currency play itself out before making any major decisions.
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