Why Some People Sell Real Estate to Buy Bitcoin

Bitcoin has experienced more than 860% annual growth in the past year, moving from $6,700 to $58,000 per coin. Experts predict Bitcoin will significantly impact the real estate market in the coming years, offering a new platform for most transactions. The continued rise in Bitcoin’s price makes it one of the most lucrative financial instruments for property buyers and sellers. Here are the main reasons why people are increasingly selling real estate to buy Bitcoin.

Rapid Appreciation Rate
Cryptocurrencies such as Bitcoin are highly volatile. However, they are also very resilient to market changes, with more significant potential for appreciation, as has been witnessed by Bitcoin’s recent performance. Bitcoin has appreciated by more than 120,000% in the past three years. That is more lucrative than cash currencies like the USD, which loses value every year and much more than the consumer price index. Financial market reports indicate about 10% inflation annually, which means your purchasing power would decrease to just 75% of those dollars if you hold them for about three years. On the other hand, holding Bitcoin will give you more purchasing power when you acquire more property.

Better Prices
Although crypto appreciates at a very high rate, it has limited liquidity. That allows smart real estate sellers to ask for more Bitcoin than they would dollars. Property buyers using cryptocurrency are usually willing to pay the additional price to diversify their investments. As a result, forward-thinking sellers will accept Bitcoin because it promises better prices compared to taking cash.

Besides, Bitcoin has lower transaction fees, which also allows sellers to cut costs significantly. They can acquire more property, trade crypto, or hold them for the long term using the profits. Automated crypto exchanges like bitcoin pro offer trading tips, up-to-date market forecasts, and price movements to help you maximize returns from your investing and trading activities.

Tax Advantages
Selling real estate for cryptocurrency is like trading one asset for another. However, Bitcoin promises significant capital gains that will put you on the winning side. For instance, if thousands of percentages have appreciated your cryptocurrency, your basis is almost zero. Consequently, the value of your real estate would have increased by a large margin if you have owned it for a long time.

However, circumstances and investment goals make it difficult to sell for market value. Thus, property buyers and sellers can mutually agree on sales prices within a given range to manage capital gains. Selling for cryptocurrency can enable both parties to reduce their capital gains exposure, unlike dollars. Although a dollar’s value is always $1, Bitcoin is divisible into multiple smaller units, offering you significant tax advantages.

Fraud Prevention
The real estate market is full of fraudulent activities, which could be very frustrating. Many sellers have reported cases whereby buyers fail to send payment after receiving the title deeds. Sometimes, the banks confiscate the fees before sellers receive them. Accepting Bitcoin prevents such cases because of its underlying blockchain technology.

Bitcoin transactions exclusively occur electronically over the network, without any middlemen. Besides, the blockchain verifies and compiles all transaction data on a permanent shared ledger. That offers an up to date, accurate and reliable proof of transactions, preventing cases of fraud. Apart from money transfers, sellers can also use the blockchain to transfer deeds, ensuring greater transparency and security for both parties involved.

Selling real estate for Bitcoin might seem like a new concept but it offers more significant potential for increasing your purchasing power, with substantial tax advantages. It is a creative strategy that could significantly push your real estate investment plans to new heights.