In commercial real estate, bitcoin is being used for several reasons. One reason for example, is to attract younger tenants and allow them to pay their monthly rent through this new cryptocurrency. Residencies surrounding University of Southern California are taking part in this trend. We see this trend widely expanding through other cities such as Miami and Seattle.
“This is the latest trend in the industry aimed at attracting investors not easily intimidated by technology.” Stated Joel Leslie, co-founder and partner at Propify, a blockchain-based real estate marketing solution platform. He adds, “Using bitcoin to make payments is just as simple as using Apple Pay. The primary difference being Apple Pay pulls money directly out of your bank account, while bitcoin pulls money out of your bitcoin wallet.”
Although this might seem like an exciting new trend, it does come with some risks. It is still not 100% secure due to it’s inconsistency in the stock market. In 2017 when bitcoin became popular, the price of bitcoin dramatically increased from its initial price of $950 to $10K. Just under 30 days later, the currency skyrocketed to $20K in value. By January 25, 2018, the value of bitcoin has dropped to $11,268.53. These volatile prices may seem risky when dealing with larger payments and investments like commercial real estate.
“People often see taking bitcoin as a risk, and while bitcoin is certainly volatile, we think it’s measured off a bit and will and will become more stable,” Said Magnum Real Estate Group President Ben Shaoul.
Read more about the trends of Bitcoin here