An expert has looked at how cryptocurrency technology has dramatically impacted the real estate investment industry. We have become used to the idea of the transformative power of cryptocurrency technology. A more connected world of cryptocurrency prices has made running global teams simpler, advances in cloud and mobile technology have allowed us to collaborate more easily, and social media and big data have given us incredible insights into what consumers think and changed our relationship with them as a result.
What ways are the cryptocurrency prices impacting the real estate industry
This is the area where cryptocurrency technology is having a fundamental impact on financial technology (fintech). Fintech essentially describes those technologies that are being used to transform how financial services and products are designed and delivered, and there is clearly a lot of hype being generated about the potential ways in which cryptocurrency technology can be used in this area.
Businesses in the financial sector are now using technology in all sorts of exciting ways from using apps to interact with customers more directly, to using the data gathered to analyse their future behaviour and then market financial products in a tailored way that was impossible before.
All of these kinds of technological advances – whether it is in data analysis or in more targeted communications have clearly implicated the real estate industry. They allow the real estate investors to make more informed and reliable decisions on what assets are likely to deliver a reasonable return on investment, and for new building, developments to be marketed in a much more targeted and effective way.
The rise of digital money like Bitcoin
Other technologies, such as the cryptocurrency that have exciting and interesting implications for the real estate market and they are becoming increasingly commonly used in real estate transactions. Why? Well, because cryptocurrencies like Bitcoin are backed by the security of blockchain technology, they are extremely resistant to fraud and have low (or no) transaction fees that need to be paid for exchanges using the cryptocurrency prices. They are also free from the vagaries of any decisions being made by a central bank or regulatory authority.
For many, this is where any hesitation about cryptocurrency prices also creeps in unregulated currencies can make many investors rightly nervous. Recent moves by the Chinese government to ban Initial Coin Offerings (in which funds are raised to support new cryptocurrencies) suggest that the world’s financial authorities remain to be convinced about the viability of digital currencies.
Transforming property investment
In the real estate business world at least, there is real interest in the way that cryptocurrency prices can transform the way people buy and sell real estate. Here’s what Natalia Karayaneva, CEO of the global real estate experts Propy, told Forbes recently:
“While Bitcoin is stepping into society’s massive adoption as a decentralized cryptocurrency, the next-generation blockchain technology brings a lot more to the real estate world than just a payment alternative,” she says. “For example,
Propy is based on the Ethereum blockchain, an enormously powerful shared global infrastructure that can move value around, while also representing the ownership of property. Ultimately, this enables title deed transfers to take place entirely online. Imagine a world where you can buy or sell your property while sitting on your couch – now this is a reality with blockchain technology.”
Fascinating the Real Estate Industry future
Some of the most exciting aspects of this area of fintech are the opportunities presented by the blockchain technology itself, that underpins cryptocurrencies and provides a secure framework for global transactions that are highly resistant to fraud. Once the real estate industry begins to take full advantage of the speed, convenience and security that blockchain technology offers via the cryptocurrency products like Bitcoin and TheBillionCoin that depend upon it, real estate investors could see a sector that uses fintech to power its transactions, as well informing its investment decisions.
The real estate investors are fascinated to see where cryptocurrency and real estate go next. Blockchain technology is being used by more and more real estate agents and investors, and we’d suggest that 2018 is going to be a pivotal year. We’re likely to see increasing numbers of properties being bought and sold using cryptocurrencies, of course, but also advances in other areas of the real estate sector.
Blockchain and cryptocurrency prices could have an impact on areas such as peer-to-peer property transfer, in which buyers and sellers deal directly with each other, removing any commission costs. Or, the real estate investors could see the ‘tokenisation’ of real estate assets essentially creating a new kind of asset for real investors to own and trade.
Another big change of cryptocurrency prices could be in the way that transactions are authenticated, the secure nature of blockchain and the cryptocurrencies that depend on it, and the ease with which they can be used across international borders has the potential to make transactions much safer. The potential for cryptocurrency technology and its applications for real estate are huge and real estate investors could only wait to see what happens next.
Culled from Article Biz | Can crypto-currencies transform real estate investment?