Cryptocurrencies have become not only a popular topic of conversation, but all the rage in business as well. For those unfamiliar with cryptocurrencies such as bitcoin, they can essentially be thought of as digital cash. With the rise of this unique form of money, many wonder how categories of business, such as commercial real estate, have been and will continue to be affected by it.
More and more companies have begun to accept cryptocurrency, such as Subway, JC Penny and Whole Foods. Recently, the real estate industry has also taken an interest in this form of money. Keller-Williams London, Douglas-Elliman and Sotheby are just three real estate firms that accept bitcoin as payment. Cryptocurrency is being used more and more frequently with younger people, and is slowly but surely seeping into their daily lives. Therefore, it makes sense that they would want to begin using it to buy a home, a warehouse or a second office for their expanding business.
Blockchain, the technology behind cryptocurrency, has the most prominent influence on commercial real estate. Blockchain is the closest thing to a banking system that cryptocurrency has. Whenever there is a transaction, it is recorded into a large public ledger. This ledger is described as “the title deeds to commercial properties.”
All of the details of a transaction are stored in this ledger where anyone can see full documentation of the deal made. Using cryptocurrency can make buying properties easier as it simplifies the paperwork and funding necessary for a CRE transaction.
As cryptocurrency becomes the norm, buyers can expect it to take a larger hold on the commercial real estate industry and embrace the many benefits that using cryptocurrency holds, such as providing a safer way to transact money, improving the property search process and enabling a more efficient processing of financing and payments – just to name three.