- Those wishing to invest in real estate with cryptocurrencies should keep in mind that due to the volatility of the cryptocurrency market, real estate values will remain unchanged in local currency. Any capital gains from selling bitcoins during the transaction must also be paid by the buyer.
- The S&P 500 was down 7.4% at the start of 2022, and the Nasdaq, which is centered on technology, was down 14% year over year. Bonds are frequently used by investors to fight declining returns. Bond prices, on the other hand, are currently decreasing, placing investors in a bind.
- Vicenç Hernández Reche, a consultant to Perez’s firm and the CEO of Tecnotramit, a mortgage formalization and administration firm, agrees. Using them as a speculative investment, such as buying dollars or gold, is one thing; using them as a currency for exchanging real estate is quite another.
Real estate: Since November 2021, the real estate market in Spain has been rising. As the stock market struggles under the weight of the epidemic, inflation, and Russia’s invasion of Ukraine, it grew 400 percent. Almost every country, especially developing economies, has seen a drop in actual stock returns during periods of severe inflation since the 1930s. This is going to be a revealing quarter in terms of who’s at danger of these inflationary pressures, Joe Quinlan, head of CIO market strategy for Merrill and Bank of America Private Bank, told the Wall Street Journal earlier this month.
Spain Is Developing As Just A Leader In The Cryptocurrencies Real Estate Market
The S&P 500 was down 7.4% at the start of 2022, and the Nasdaq, which is centered on technology, was down 14% year over year. Bonds are frequently used by investors to fight declining returns. Bond prices, on the other hand, are currently decreasing, placing investors in a bind. Unless they turn to real estate, an asset type that caters mostly to conservative investors.
Spain is leading the way, with a 400% increase in the real estate market since November 2021. In the last two months, there has been a surge in interest in purchasing bitcoin properties. Investors are withdrawing all they had on the stock market and investing in real estate to preserve their investments, a situation that has exacerbated since the Russian military incursion in 2014, according to the president of Invertis Properties in Mataro, Spain.
Early cryptocurrency investors have amassed substantial money. This can help them diversify their investment portfolios by adding more assets with consistent supply and demand. He went on to say, You turn a risky asset into a conservative asset. He also noted that there are still challenges, such as determining the property price in bitcoin, carrying out the transaction, and obtaining government treasury approval.
Property purchases are contingent on the seller’s willingness to accept cryptocurrency payments. Some sellers just accept cryptocurrencies, while others prefer a mix of cash and cryptocurrency. This will necessitate the transfer of bitcoin from one crypto wallet to another. Cash payments will still be required to pay intermediaries and government entities, according to BitPay.
Properties Transfers Via Virtual Currencies: Do They Work
Vicenç Hernández Reche, a consultant to Perez’s firm and the CEO of Tecnotramit, a mortgage formalization and administration firm, agrees. Using them as a speculative investment, such as buying dollars or gold, is one thing; using them as a currency for exchanging real estate is quite another. Intermediaries, financial companies, notaries, and property registrars, among others, are likely to increase their use and adoption, according to him. Cryptocurrencies will be used more widely in the future.
Those wishing to invest in real estate with cryptocurrencies should keep in mind that due to the volatility of the cryptocurrency market, real estate values will remain unchanged in local currency. Any capital gains from selling bitcoins during the transaction must also be paid by the buyer.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2022/04/24/real-estate-spains-sales-keep-going-up-despite-macroeconomic-anxiety/