The world of cryptocurrency is here and it seems that it is here to stay. The real estate market has not yet fully adapted to it, so we bring you criteria and opinions of crypto and Real Estate experts in order for you to make better decisions when buying or selling your property in Costa Rica.

Transactions in Bitcoin for Real Estate According to Experts

Stefan Ateljevic, (Cryptocurrency Expert & founder of CryptoBlokes)

Cryptocurrency has been around us for more than a decade, but most of us have known it for just a couple of years. The impact that it has had on technology, investment, and currency exchanges is huge, still, most of its impact is currently growing. For the next decade, we’ll surely see bitcoin and cryptocurrency make their way into the financial sector and our everyday lives.

In terms of Costa Rica Real Estate, cryptos are mainly opening a whole new way in which people can purchase a property. Bitcoin and cryptos, in general, were born to solve common money-related issues, like lack of transparency, inflation, corruption, terrible banks, etc.

Cryptos are currently offering a new platform in which people can make transactions, so they have a new platform in which sales can be done. Still, that isn’t the only thing that cryptocurrencies offer.

The core technology behind Bitcoin is called Blockchain, which also brings a new way for investors and sellers to record property transactions, in a more secure way that allows saving time and money from regular paperwork.

Purchasing properties in Costa Rica using bitcoin as a reality, however, as the market is still evolving, all kinds of regulations and laws are also still to come.

R. Michael Brown (Vice President Communications, My State MLS)

I think crypto currency is too volatile right now to purchase property,” said Dawn Pfaff, Founder, President and CEO of My State MLS. “If you look at Bitcoin and Etherium it can swing 10% or more in value a day.

If you accept an offer and get a contract in Bitcoin for the currency, and by the time you get to the closing, and Bitcoin has dropped, you risk a huge loss as a seller. However, if you make the deal in American dollars, and pay in Bitcoin and that money is turned back into American dollars immediately, then you aren’t really risking anything.

But, the American government usually wants to know the source of money over $10,000 if you made the deal in the U.S., and if you don’t know where your buyer got that Bitcoin, or how, you may have legal issues.

Chris McGuire (Founder of Real Estate Exam Ninja)

In general terms, you can use cryptocurrency as cash even if it isn’t in physical form.

Making an offer in cryptocurrencies, which is similar to making an all-cash offer, may even be appealing to some buyers. Nevertheless, you might find challenges that are unique to this type of currency.

The most obvious disadvantage of using cryptocurrencies to buy a property is that its value is extremely volatile.

This may not pay off in the end when it comes time to close the deal, which is why some sellers are afraid to take cryptocurrency as payment. Some owners may be willing to accept and even seek out virtual currency, while others may not.

When paying with cryptocurrency, you have the option of sending the cryptocurrency directly to the seller or converting it to US dollars. Because sellers who are willing to participate in the former approach are still few, it may be more cost-effective to purchase a house via the second way.

Cryptocurrency is a novel way of payment that is here to stay and it’s slowly making its way into real estate so it’s important to be open-minded to this new possibility and to be patient if you’re trying to use it to either sell or buy a property.

Richard Latimer (CEO of Veritas Buyers)

Litecoin, and other cryptocurrencies have been a hot topic in finance for years, but they have only recently gained traction in the real estate industry.

Cryptocurrency has already been used to purchase several properties, including luxury and commercial properties.

If you buy a house using Bitcoin, you will be acquiring a more safe asset. The value of cryptocurrency is volatile, which means it varies frequently. This means that the Bitcoin you bought could depreciate and be worth less than you paid for it, or it could appreciate and become more valuable.

The value of cryptocurrencies fluctuates daily, just like the value of assets traded on the stock market.When you buy a house using cryptocurrency, you’re exchanging a risky asset for a safer one. Real estate worth tends to appreciate over time, which means it will rise in value far slower than crypto – but it will also be less likely to lose weight, which might happen at any time with crypto.

Lisa Lacey (CEO of Lisa Buys Austin Homes)

Young bitcoin investors are increasingly trying to diversify their holdings into real estate, and modern sellers recognize the value of having various options.

As the usage of cryptocurrencies for real estate purchases grows more widespread, the consequences will influence both buyers and sellers, with both benefits and costs.

You might be eligible for a discount if you buy a house with Bitcoin. If you discover a merchant who will take a cryptocurrency offer, they might be ready to give you a deal.

Crypto investors who predict the value of your request to improve over time are likely to be sellers interested in gaining bitcoin or another virtual currency.

If they believe they can continue to earn from the crypto you’ve supplied them, they might accept a somewhat lesser price for the house.

Bitcoin Price Over the Years

Matt Ward (Realtor The Matt Ward Group)

It has been more than 12 years since bitcoins first launched. However, it is still a bit difficult to use this digital form of money for purchasing a house.

Mortgage lenders are instructed to report the deposits that appear too large or odd, which is something that crypto investments can fall foul of. It leads to the need for further verifications.

This means, using bitcoins to purchase a house can lead to a lot of complications, and sometimes it might turn out quite difficult to do so. However, some people see bitcoins as the future of real estate transactions, as it prevents fraud and promotes reliability by creating a certifiable digital ID.

Dawn Templeton (Designated Broker and Owner at Templeton Real Estate Group)

Acquirement of a more secure account

The value of cryptocurrency works like a stock market which means that they are changeable in value frequently, in short, termed as volatile. So when you do purchase on the cryptocurrency you can use that at the right time when the value spikes up to have much more value than you were to get in closing the deal.

Doing trade with cryptocurrencies like Bitcoin or Ethereum means having a volatile asset in your hand and the real estate market also tends to appreciate over time that means the value of property grows much slower than the cryptocurrency.

So ultimately you are gaining much more than the initial.

Faster deal closing

Doing a home purchase is a much more complex process with many shorter and longer steps in the way, even after doing a lot of hard work your property buy or sale may depend on time.

Cryptocurrency is something that can speed up the process of purchasing a home like cutting all the steps of a mortgage loan or doing the transaction over time with other payment systems etc. With cryptocurrency on the board, the offer can be made upfront without any delay or time consumption.