How cryptocurrencies are starting to be used with property
You might have heard plenty about cryptocurrencies like Bitcoin in recent months. These new forms of online currencies have been growing in importance as more people begin to see the benefits of secure spending online. But for the most part, they have been used for low-level purchases until now.
However, there is gradually starting to be a move towards larger scale usage, with even purchasing property now becoming a possibility. Fintech and financial startups have increasingly been investigating how to boost their client’s access to cryptocurrencies, with a number now announcing new versions that can be used especially for the purchase of property.
One such fintech company is BrickCoin, which announced its new currency underpinned by Blockchain and backed by real estate held in in Real Estate Investment Trusts (REITs).
REITs invest in real estate and are traded on exchanges like stocks. The company is active and has been listed in the UK, US and EU. The aim of currencies like BrickCoin is to try and help individuals protect their money against fluctuating market conditions such as inflation. It does this via strictly regulated and stable assets. They will offer both high liquidity and regulatory safeguards, with each BrickCoin representing a piece of mortgage-free real estate.
All transactions will be managed and tracked using blockchain technology and BrickCoin will offer higher liquidity than savings or fixed income accounts.
The main problem with cryptocurrencies up to this point has been that they have not been regulated which has left the industry open to unscrupulous players and scams. However, as they become more important they are increasingly being brought under regulatory umbrellas. Also, as more of the world’s banks and financial institutions continue to experiment with blockchain technology it seems likely that cryptocurrencies will be brought more into the mainstream. Regulators are taking an increasing interest as a result, which all points towards greater security and safety in the market.
In the meantime, while watching developments in this fascinating arena, we’ll very much be keeping our focus on achieving long-term gains in the property market that we know well.
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