Is bitcoin the future of real estate?
The jury’s still out on bitcoin, and to be honest, so am I. But there are certain merits to the technology behind bitcoin that could be useful in a variety of different industries, including real estate. In case you’re still living under a rock, bitcoin is a peer-to-peer digital currency that has become more mainstream in the past few years. The market value is still extremely volatile, but anyone can purchase bitcoin on an exchange using a credit or debit card, or cash - similar to any other foreign currency.
One of the unique properties of bitcoin is that even though the currency itself is completely electronic, there is a record of every exchange called the blockchain. This record cannot be altered in any way. Much like your closing attorney does a title search on any property you buy, blockchain can be thought of as an electronic “chain of title.”
Why is this a big deal?
It could be just a fad. But this increased transparency - a digital footprint of sorts - has the potential to completely change how real estate transactions occur.
Imagine for a second that each house had its own digital identity that showed a detailed ownership record, as well as record of all repairs ever made to the property.
You can’t find that stuff on Zillow. Heck, you can’t find it anywhere unless you have the luck of purchasing a property from the original owner and they kept meticulous notes on everything they’ve done to the house. It’s not very likely.
But this information would be available on every house. It would be transparent and unalterable by anyone.
This information would help inform your buying decision, and ultimately you might even be able to submit an offer to purchase via your blockchain identity.
As is the case with other potentially disruptive ideas, nobody knows what will happen and if bitcoin and its blockchain technology will catch on. As a real estate agent and real estate investor, the possibilities of this both intrigue me and cause me some anxiety.
Comments (3)
I'm excited about this. If implemented correctly and universally adopted, this technology has the potential to revolutionize the world as we know it on a foundational level similar in scale to PCs, the Internet and the advent of smart phones and mobile technology. Every industry, not just banking and real estate, can and will be fundamentally changed for the better. How could flawless transparency, world-class security, and near-instant transfer of payment or ownership to anyone anywhere be a bad thing for any business?
Eric Bryant, almost 9 years ago
The concept that virtual money can change hands like currency or gold is so far fetched I have a hard time believe it will be legalized.
Sam Shueh
Sam Shueh, almost 9 years ago
Bitcon, blockchain, ethereum, smart contracts, open source MLS, all could be good for slow processes, transparency and more. And in other countries where there is even far more corruption or no real regulations, even moreso.
But it's not really a technology thing, even though it won't be easy to implement all of this or the "internet of things" and "smart homes/cities", it's more a people and process and politics thing. Look at the MLS system today in the US. There are what, over 1000 of them and many are not exactly in the best formats or that easy to use or improve.
Plus the entire Blockchain and bitcoin realm and sector needs to stop being so full of themselves and hoping to make some quick cash on higher prices. There are so many frauds in the space it's not funny. Or they are legit, except they believe in cryptocurrency and disruption so much they lose sight of the fact they are doing the same things, just using different tools. Many act more like some speculative stock or crowd sales over actually making a useful technology that solves actual problems.
Bob Pattersonly, almost 9 years ago