Cryptocurrency payments for real estate are becoming more popular in Spain as the real estate industry becomes a safe haven for investors.
Cryptocurrencies are becoming increasingly popular as a means of payment among those wishing to purchase property and real estate in Spain.
Rebeca Pérez, founder and CEO of the online real estate market Inverted, told Europa Press that the current inflationary crisis and the effects of Russia's war against Ukraine on some financial sectors are shaking the global economy, which was just beginning to recover from the consequences caused by the Covid pandemic.
Perez said that in Spain, economic uncertainty has boosted the growth of the real estate industry by 400% in the last five months.
Since last November, more investors see real estate as a safe haven for value. Even for those riskier investors, who tend to turn to or are involved in the world of cryptocurrencies, the Spanish real estate industry is very attractive as an alternative to preserve value.
Cryptocurrency investors are moving into the real estate industry
Perez said that investors are withdrawing their capital from the stock market and shares to approach real estate investment in Spain. Also, although modest investors do not usually use cryptocurrencies to trade in the real estate industry, the founder of Inviertis pointed out that in recent months cryptoassets have become more common as a valid currency for acquiring properties.
The real estate expert pointed out that one of the main advantages of using cryptocurrencies as a means of payment “is that you turn a risky investment into a conservative one.”
Pérez also highlighted the economic advantage that many crypto asset owners have, who, if they were lucky enough to enter the world of cryptocurrencies in 2012, for example, can then “buy a house for the 200 euros of that time”.
Since May 2013, 9 years ago, the cryptocurrency market has grown by more than 100.000%, showing a current total capitalization above 1,92 trillions of dollarsBy then, the market capitalization of cryptocurrencies was close to $1.690 billion.
Towards mainstream adoption of cryptocurrencies
Although cryptocurrencies are making their way into the Spanish real estate industry, Inviertis advisor and CEO of Tecnotramit, Vicenç Hernández Reche, points out that the adoption of cryptoassets within this market is still at a very early stage.
The volatility of cryptocurrencies to set the price of a sale, regulatory policies and the lack of knowledge on how to make a transaction with these digital assets are some of the reasons that may be limiting a wider use of cryptocurrencies within the Spanish real estate market.
However, Hernandez also noted that as more investors, financial institutions and property registrars enter the crypto world, digital assets will become more widespread as a valid form of payment, gaining more ground within this market and other sectors of society.
Cryptocurrencies in the real estate sector in Spain and around the world
In Spain, several companies in the real estate industry have opened the doors to technology blockchain and cryptocurrencies to provide more options to its clients and investors.
For example, Tiko, headquartered in Madrid, is one of the Spanish real estate companies that accepts payments in cryptocurrencies such as Bitcoin (BTCEthereum ()ETH), Iota (IOTA) and Neo (NEO). Reental is also integrating blockchain into the Spanish real estate market to facilitate real estate investment.
In other countries around the world, such as the United States, companies like Magnum, Republic and RealT have been pushing the adoption of cryptocurrencies in the real estate industry. Even the company Milo is adopting crypto assets as a form of collateral to finance the purchase of properties through “crypto mortgages.”
Last month, Wayne Vaughan, CEO of startup Tierion, I buy an $18 million property located in Los Angeles, to Justin Bieber's manager, Scott Samuel Braun, using bitcoins as a means of payment.
In developing countries such as Colombia and Venezuela, cryptocurrencies are also materializing as a means of payment for the acquisition of real estate.
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