Updated: Mar 22, 2021
Cryptocurrency facing the skeptical people
The ones that fail to adapt to constant innovation will do nothing but lose. The changes that constantly appear in all the industries evolving around us give us the opportunity to follow the money flow. An important switch that did not take any digital enthusiasts by surprise was the switch to cryptocurrency.
Even if there are skeptical people in the business world that still think cryptocurrency has no real application and think twice before engaging in such payments, we are here to tell you that we have no reason to be scared. The value it’s there, it’s just not tangible. It’s digital coins designed to work as money, while the payments are computerised using strong cryptography to secure their transactions and verify their transfer. First and the most popular decentralized cryptocurrency was bitcoin, but since 2009 - the year when it happened - other cryptocurrencies have shown up on the market, namely: litecoin, namecoin, nano, Zcash, EOS.IOS or cardano.
Intermediaries, liquidity & security, factors influenced by cryptocurrency
Several industries started to use cryptocurrency instead of doing traditional transactions. Starting with December 2020, the fact that bitcoin has experienced a constant rise and reaching new all-time highs, breaking through $20,000 per BTC, made once again all the investors think how high can it still go and how far the digital payments will go? Knowing that they have to adapt in order to survive, they tried to take a stand on the market and even if biggest four industries so far using bitcoin were online retail, service (hotels & restaurants), gambling (online casinos mostly) and charity (biggest charity organisations), real estate industry started also slow, but steady, to adapt, in order to survive on the market.
In order to understand how we can measure the impact of cryptocurrencies and their blockchain platforms on the real estate industry, we must first address the things that this switch influences the most, namely: intermediaries, liquidity and last, but not the least, the trust and the security of the payments.
Removing intermediaries - It is known that the process of buying or selling in real estate industry is a long one, full of bureaucratic transactions that involve brokers, lawyers and banking agents. Cryptocurrency removes them all and the evolution of blockchain eliminates the necessity of so many individuals being involved in a transaction. They are replaced by blockchain platforms and smart contacts that can do the traditional job smoother, faster and, more importantly, by using less money.
Liquidity - Cryptocurrency not only shortens the time of the processes mentioned earlier, but also makes real estate a more liquid asset, since all the transactions become easier to deal with and simpler to understand by common people.
Trust & Security - Data protection of the individuals involved in real estate investments must be taken care of and this is another great advantage that the cryptocurrency brings with it. Blockchain is proved as being one of the most secure technologies in circulation and this can do nothing but reassure and give confidence to both parts involved that there is no danger for frauds or leaks of information to happen.