Hi we are doing some quick market research on an idea...
Would you be interested in an online service that allows people to purchase equity in rental properties using cryptocurrency?
3- Write whatever you want... THANKS!!!
Speaking only for myself...no. For two reasons:
1. The crypto market is horrendously volatile. I admit, cryptocurrencies intrigue me. Followed the trend for a little while. I own a little bit of one, and may try buying a couple more next year. That's to play with though, not make money. The market is so overstuffed and so speculative that it unnerves me. I am no economist, but the whole thing SCREAMS "bubble."
When it pops, and a little time goes by, we may indeed see something stable and respectable growing from its remnants. At such a time, using crypto to buy RE may be a prudent course. But not now.
2. Real estate-dedicated cryptocurrencies already exist. Thus rendering a service at least partly redundant (unless you're building the service within one of those cryptocurrency's blockchain).
Look up REX, Reidao, and the REAL Platform to name a few. Thing is, as far as I know, all of these are floundering. Nothing near the investment level of Bitcoin, or the diversity of Ethereum. And we already know my thoughts on these currencies' inherent stability.
Now, I don't own properties yet. But when I'm ready to buy, it'll be with good old cash. Hope that helps.
Same reasons mentioned above for me, although it has been done: https://www.google.com/amp/s/futurism.com/bitcoin-was-just-used-to-pay-for-a-new-home-in-texas/amp/
@Donavon Davies Like in any big pyramid scheme early adopter might make some money in crypto currencies before everyone else loses a huge amount of money.
@Donavon Davies you know I would, but as @Chris Williams said there are coin projects dedicated to this endeavor. I think the better bet, if any, is a service where you can invest using Fiat currency and Crypto, giving people the option.
Also I enjoy this dynamic of mindset I see when talking with real estate investors about crypto. As you know I invest in both and some of the things gents like @Russell Holmes said do have merit. On the flipside some of those same points relate to fiat currency as well.
What gives the USD value? Is it just the backing of the U.S. government? Is that an asset backed currency, our government is trillions in debt. In the end currency is not an asset, it is what it's called a currency. Something used as a more efficient way to transact the transfer (buying/selling) of goods.
The crypto market is very much like the .com bubble of the late 90s, but out of that you ended up with a handful of companies that now run our country so to speak. I believe the same will be said for crypto.
It is infancy stages still in the space, eventually their will be cryptos that are much less volatie (Litecoin is already an example and has nearly instant transaction processing) and be used to buy your everyday coffee, maybe not real estate, but many many other things.
There will be booms and bust, coins will come and go, but crypto currency is not likely going away. I certainly wouldn't call it a ponzi scheme, that would mean the .com bubble was a ponzi scheme.... if you really want a bitcoin ponzi scheme; https://bitconnect.co/?ref=Mitch78 this is one..LOL. I in vested in it early so I will likely make money. It's a total pyramid scheme tho.
Just my two cents and opinion only.
No for me, especially the value of cryptocurrency is not predictable, you may be at a loss when paid with cryptocurrency especially its value rises or fluctuates
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I would not. And I know people will say the US dollar is fiat and not backed by anything but it is backed by the US government which last time I checked does have a few assets they control with land and natural resources. If the US dollar collapsed or had inflation/deflation of 10% per day the entire world monetary system would be turned upside down. If all crypto went to zero it would have no effect on any world economy.
Crypto in my mind is not a currency but being treated as one. It’s prices go up and down based on FOMO and speculation. The US dollar goes up and down based on economics (inflation, jobs, wages etc). Trying to compare the two i do not believe is valid
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