Purchasing a home with a cryptocurrency, such as Bitcoin or Ethereum, seemed out of the question a few years ago. But new players are making it possible. One platform, MyEListing.com from Coinbase Commerce, has launched with the purpose of facilitating property purchases with cryptocurrency.
Those promoting the use of crypto cite transaction speed as one of the great benefits, allowing a sale to close within one day. But as commenters have pointed out, the current closing time frame allows for important steps, like the home inspection and title search.
Real Estate and Cryptocurrency Values
Estimated value of all residential real estate in the United States: $43.5 trillion
Source: Redfin.com
Estimated value of all cryptocurrencies: Market cap of $1.03 trillion
(June 14, 2023)
Moreover, with the volatility in the value of cryptocurrencies, a seller or mortgage company that accepts today’s dollar equivalent in crypto may find the value greatly reduced tomorrow.
Still, for those with enough crypto on hand (virtually speaking), it could simply be a matter of converting it into fiat money and holding it in a named account for two months or using the value as collateral for a loan. However, someone who sells their crypto may incur capital gains taxes, so be aware of all the ramifications if your homebuyer wants to use their virtual money for a home purchase.
Photo: iStock.com/Ravitaliy
