Bitcoin in Real Estate Transactions - Wave of the Future or Total Bust?

 Posted on December 00, 0000 in Naperville Real Estate Attorney

Bitcoin, though introduced back in 2009, has made little headway in the real estate market. Still, there are enthusiasts who still believe Bitcoin real estate transactions (and other blockchain exchanges) are the wave of the future, and even real estate professionals have a mixed opinion about the future of cryptocurrency in real estate. What does all this mean for investors who are looking to sell or buy a property using blockchain, and how can a seasoned real estate lawyer help to mitigate the potential risks of such a transition? Learn more in the following sections.

Bitcoin Transactions in Real Estate 

Last fall, a Miami condo made national headlines when its listing announced that the seller would only take Bitcoin for the transaction. The price, which was set at 33 Bitcoins, amounted to about $544,500 at that time. While others had allowed cryptocurrency for real estate transactions, this was the first ever “Bitcoin only” transaction.

Bitcoin enthusiasts boasted that the listing would be the start of a real estate revolution; it has yet to happen. In fact, cryptocurrency has made little headway in the real estate market. Some say it is because the market is not yet ready for Bitcoin because the currency is still just too volatile. Others fail to see any value in such transactions. The exclusivity blockchains also hinder the market's ability to transition over to “crytocurrency only” transactions.

Anonymity in cryptocurrency may also be vanishing, if the Internal Revenue Service (IRS) is successful at obtaining records from Bitcoin. They say their concern is that people may be trying to use the currency to hide assets and avoid taxation, and that it increases the chances of money laundering and illegal transactions. Whatever the reason for them cracking down on cryptocurrency owners, the knowledge that the IRS may soon have access to a purchaser or seller's account could make it less appealing in a real estate transaction. After all, it is the privacy that makes blockchain currencies so appealing.

Our Naperville Real Estate Attorneys Can Help with Your Next Real Estate Transaction

Real estate transactions can be highly complex, but those that involve a cryptocurrency can be especially challenging for both buyers and sellers. Get seasoned legal assistance to reduce the chances of a loss or issue in your next cryptocurrency real estate transaction. Contact the seasoned Naperville real estate attorneys at Lindell & Tessitore, P.C. by calling 630-778-3818 today. We protect your interests at every turn.

Sources:

http://fortune.com/2017/12/14/bitcoin-price-miami-condo-sale-pay/

https://www.miamiherald.com/news/business/real-estate-news/article196658364.html