Real Estate Investing in the Age of Cryptocurrencies

With the advent of online banking and digital payment methods, physical currencies have witnessed a significant decline in their usage. This might not be totally applicable to third-world countries, but developed countries are rapidly adopting this revolution.

Studies show that as that of 2018, only 1-2% of Americans used physical means of dollar bills and coins for their payment. This number might have further been reduced as more and more people are now depending upon a number of digital methods such as crowdfunding platforms, debit and credit cards, blockchain networks, and cryptocurrencies for almost all of their transactions.

With that said, here’s a quick fact for you to know. The pound is the oldest currency dating back to the 8th century, while the latest and most updated currency is South Sudanese Pound introduced in 2011.

Different Physical Asset Classes:

Physical assets are classified into different classes and are of different types. Here is a list of physical asset classes that you need to know;

• All gold held by the financial institutes and individuals
• All coins and banknotes all across the world
• All international stock markets
• International supply of different types of money including savings, cash, and checking
• All internationally developed real estate

International banks have been the primary and largest source for purchasing real estate for the past 100 years. However, there has been a significant decline in the graph showing that banks are not lending as much money as that 10 to 20 years ago. And that is the reason why private money options such as numerous digital currency systems, hedge funding, investment funding, and crowdfunding platforms for real estate are slowly dominating the real estate market.

Growth of Cryptocurrencies:

Cryptocurrencies are slowly dominating the world and are not only a means of digital transactions but also investments. Studies conducted in 2018 show that the combined market capitalization market value of all cryptocurrencies and blockchain currencies in 2017 was 654 billion dollars. While the worth of the blockchain industry reached its all-time highest in 2018 with a net worth of 700 billion dollars.

Top 10 Largest Cryptocurrencies by Market Cap Size:

According to their market size, the top 10 largest cryptocurrencies are;

• Bitcoin
• Ethereum
• Tether
• USD Coin
• Binance Coin
• Binance USD
• XRP
• Cardano ADA
• Solana
• Dogecoin

Cryptocurrencies For Real Estate:

Cryptocurrencies and real estate are two parallel industries that go side by side and help an investor elevate his investment profits. Both industries enable their holders to diversify their investments by rolling out their wealth from any one industry and investing it in another. However, the most common practice in this regard is that a holder takes out his money from the digital currency platforms and invests it in real estate.

Many international companies such as Propy are facilitating their clients to make real-estate-related transactions through cryptocurrencies. Propy has become the first company to handle and close the first recorded real estate closing and deed transfer using blockchain currency in South Burlington, Vermont. While according to the company’s CEO the company has closed deals in similar ways in Ukraine and intends to use this method to close deals in California and Dubai soon.