There’s no doubt that 2018 is shaping up to be a coming-out year for blockchain and cryptocurrency in real estate. We’re hearing about more and more deals closed by real estate agents using cryptocurrency, and blockchain-enabled real estate startups are seemingly cropping up on a weekly basis. The industry’s level of interest is approaching a fever pitch.
Cryptocurrencies operate independently of a central bank. The most well-known example of a cryptocurrency is Bitcoin but there are over 1,000 others with new ones being “minted” every day. To the SEC, cryptocurrencies are a security, the CFTC considers them commodities, the IRS sees them as property, and so on. There are a variety of agencies that have some oversight but no one agency oversees all crypto transactions.
In regard to cryptocurrency and real estate, Michelle Coleman from 6sqft.com explains “Cryptos take out the need for a middleman. There is no payment processor necessary for a buyer to pay a seller. The two simply need to agree on the sale price and the buyer sends the allotted amount to the seller’s wallet (like BitGo and Xapo).
The digital nature of cryptocurrencies makes transactions much faster. It can be completed in minutes or hours.
Typical real estate transactions require title insurance and appraisals. Once the blockchain technology is up and running on home records, neither of those will be necessary but until then, they are still necessary.”
Stonebridge Mortgage Group can help you with your real estate loans and other mortgage solutions, both residential and commercial. We serve the greater Portland area and are located in Gresham, Oregon.
Call us today at 503.661.5580