A buyer paid the entire value of a property still under construction with Bitcoin. Although cryptocurrencies can solve problems of transactions involving cash, the demand is still low.
An Argentine real estate company recently sold an office still under construction in Bitcoin. The property, which measures approximately 500 square inches, will be ready for use in June 2023.
The co-founder of that company Patricio Rozenblum confirmed that the buyer paid the total value of the property in BTC. They received the assistance of cryptocurrency exchange SatoshiTango to be able to settle the operation.
Regarding the transaction, Rozenblum stated that it was simple and there were no future fees to pay. He said the deal would have been complex if the payment had been in installments due to the volatility of Bitcoin. In that case, they should have resorted to using a stablecoin like Tether (USDT).
Bitcoin and other cryptocurrencies offer an opportunity for buyers of any property or product to make payments more easily. A growing number of companies are accepting Bitcoin, Bitcoin Cash (BCH), Ether (ETH), Litecoin (LTC), XRP, Cardano (ADA), Dogecoin (DOGE), and USD Coin (USDC), among others.
Of course, the possibility of paying with Bitcoin depends on whether the seller accepts payments with the cryptocurrency. Many people have reported that those transactions eliminate the risk of criminals snatching the cash away from them.
The Demand for Cryptocurrency Payments is Still Low but Has a Future
Rozenblum stated that the interest of customers in cryptocurrency payments is still a rarity. Despite the low demand, the businessman considers that cryptocurrencies could effectively solve problems of transactions involving cash. The latter frequently implies that the client must mobilize a lot of money, which can hinder negotiations.
The businessman was also optimistic about the future of crypto assets in the real estate industry. However, he noted that there needs to be a regulatory framework, mainly for administrative issues. Concerning the purchase of the office mentioned above, it was an exchange of assets, as they currently know cryptocurrencies in Argentina.
The Purchase and Sale of Real Estate and Cryptocurrencies in Argentina
Many Argentines purchase properties still under construction as an investment method to hedge against inflation. Another name that this system receives in the South American country is that of a future functional unit.
The buyer must pay an advance and subsequent installments, which can extend for several years, for a property still under construction. When the work is ready, he can choose between living in it, renting it, and managing it.
It is not the first time that a real estate company has resorted to using cryptocurrencies in Argentina. Various e-commerce platforms display property offers that people can buy with Bitcoin or stablecoins. Those transactions include purchases through real estate companies and private sellers.
Cryptocurrencies offer the advantage that users do not need to carry large amounts of cash to buy a product. In addition, those assets allow them to protect their privacy by not depending on third parties to conduct their transactions. Many retailers are aware of those benefits, which is why they are currently accepting payments with Bitcoin.
By Alexander Salazar