Bitcoin has officially become one of the largest bubbles in history. In October, Bitcoin was $6k per one coin. Just this last week, it reached above $17,000 per coin at its peak.
Cryptocurrency enthusiasts are calling Bitcoin the best “high-growth investment for 2018.”
But is it really?
Many people are taking advantage of the quick growth of Bitcoin and are even using it to purchase real estate.
What are your thoughts on this? Do you think that this can shake up real estate?
Not sure in what way, but Blockchain technology will find an avenue into real estate. The technology and banking industries already recognize cryptocurrency (but more importantly blockchain) as a huge potential disrupter. I wasn't around for the dot com bubble, but from what I've read, and experienced in crypto, is that we are seeing a similar bubble appear. Nobody knows exactly what blockchain based technology will become the next Google or Amazon. However, everyone in the space recognizes that once the dust settles, a select few will win BIG. My biggest bets are currently placed on Ethereum and Monero, but I have money spread around to other interesting projects as well.
Not sure how long this current bubble will last, but to your point about purchasing real estate with crypto, I've recently purchased 2 duplexes all thanks to my crypto holdings. I'm hoping the market continues through 2018, but I'm not so confident anymore. Too much main stream coverage is starting to hit the market. Once the minnows flood in, the whales will leave and take their money.
@Jack Medford Hi Jack just seeing your reply - I lived in Wisconsin in the dells for a summer - loved it ! Would love to chat and hear more about what you are up to Cheers
No, but i think Blockchain tech will change how transactions are done, from the title and recording side, I think it will be a few years yet, but Title companies will see huge changes in that side of it.
Blockchain will absolutely disrupt the real estate industry, especially in regards to Title, as Scott mentioned. However, in regards to crypto being the currency of choice, I'm skeptical. The reason I'm skeptical is because they're currently operating more similarly to a commodity/store of value than they are a currency. Additionally, new systems could need to be created/transitioned to handle the rest of the real estate transaction with crypto, such as updated escrow systems. Also, purchasing in crypto would require you to pay "cash" for a property as the lending space is no where near as developed in fiat. Regarding the sale that happened in TX using crypto, it is my understanding that step 1 was transition from BTC to USD - so really, it was a normal sale that the buyer had purchased using BTC gains.
All that being said, I'm very excited to see how the tech integrates with an otherwise late-adopting industry.
@Erin Wicomb We seem to have switched places. I grew up a couple hours north of San Diego (near Long Beach) and moved out to Madison this summer. Haven't been to the dells yet, but I've heard it is pretty fun. Finding the real estate game much easier here in the Midwest, especially coming with California money.
Always happy to chat and share knowledge and learn from others. Hit me up anytime!