Gaina Kapoor considers Buying property with cryptocurrency

Cryptocurrency is a digital currency designed to work as a medium of exchange through a computer that is not reliant on a central authority such as a government. Crypto is known as one of the most reliable and convenient ways of making financial transactions. Crypto was introduced during the financial crisis in 2008, with the creation of bitcoin; It grew in popularity and became a popular form of peer-to-peer payment without third-party involvement.

One of the main benefits of buying a property with crypto is the straightforward process. In particular, both parties must have a mutual agreement on using the virtual currency. An advantage of buying a home, in exchange for a bitcoin is that it creates more asset stability; Crypto is a volatile asset with a market value that fluctuates daily compared to, a much slower home value. Therefore, it is a secure long-term investment. An additional benefit is the security and privacy of the sale. As cryptocurrency is encrypted using a digital wallet, the buyer and seller will have more control over their information.

Nonetheless, cryptocurrency has numerous drawbacks. For instance, the virtual currency of Bitcoin has undergone a compromised reputation, specifically towards criminal transactions, such as money laundering. This is due to its inherent anonymity, which enforces the partaking of the hidden transaction between parties. The National Crime Agency has identified that the property market is vigorously exploited by criminals, and therefore proving to be severely underdeveloped.

Another disadvantage of utilizing cryptocurrency is the difficulty of locating a seller who would be interested in the digital transaction.

In recent years, there have been increasing amounts of development concerning cryptocurrencies and in particular in the proceedings of a property. However, the process has been severely criticized due to the majority of sellers not being willing to partake in the transaction.

For further information on this topic or any other legal area, please contact John Szepietowski or Kay Stewart at Audley Chaucer Solicitors on 01372303444 or email or visit our Linkedin page.

Gaina Kapoor

September 2022

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