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Why cryptocurrencies, NFTs likely to become an attractive means of payment for buying a house

Despite their volatile nature, Bitcoin and other cryptocurrencies are considered to have the potential to improve the digital world. The days are gone when you needed money for everything. Sending money or buying a product has become easier and faster thanks to the more flexible and advanced digital payments available around the world. Due to the popularity of cryptocurrencies, NFTs and other digital tokens, many businesses across countries have started preparing for these virtual assets. Some countries have gone so far as to legalize cryptocurrencies. Some big brands like Gucci, Microsoft, Starbucks and others are now accepting these cryptos as payment for the purchase of their products, while some companies like Twitter are trying to pay their creators’ salaries with cryptocurrencies. That said, what if you could buy your dream home or real estate using these digital currencies?

Cryptocurrencies, NFTs and other digital assets have a wide reach in the real estate industry. The Web3 has opened the doors to many new digital opportunities and many governments are exploring the blockchain industry in real estate.

Ashish Acharya, Founder of Propsoch, said, “Web3 opens up a world of new opportunities for the real estate industry. Governments are considering using blockchain to store land records. Tokenization enables fractional ownership for the masses. are being sold in the metaverse! But are we really ready? Widespread use of this technology seems a long way off given the high level of uncertainty and restrictions surrounding security tokens in India.

The problem with the widespread adaptation of Web3 in the real estate sector currently is that the platform is still very new and complex. Its adaptation will be essential with more clarity in the future.

Vinit Khandare, CEO and Founder of MyFundBazaar, said: “While the relevance of Web3 for the real estate market may be unclear, the correlation between an intangible asset like bitcoin and a solid home might raise questions for many. the return of the real estate market in the post-pandemic upsurge in business, Web3 is poised to have profound impacts on how one buys and invests in real estate as a whole.”

Explaining the benefits of blockchain in real estate, Abhijit Shukla, CEO and Director of Tarality, tokenizing real estate allows investors to use physical assets to create easily liquefiable portfolios on the blockchain. It also opens the world of real estate investment to less fortunate individuals. Indeed, the tokenization of assets – in this case, ownership – makes fractional investing possible.

For example, someone who might never be able to buy an investment apartment for $250,000 might be able to afford a fraction of that amount, entitling them to a fraction of their property, which they could exchange for an equivalent fraction of another property at any time. Shukla pointed out that an AI platform allows multiple investors to buy fractional turnkey rental properties for as little as $50 apiece.

The CEO of Tarality also shed light on the controversies surrounding Bitcoin and other cryptocurrencies, which often creates panic among investors and prevents them from using these digital tokens.

Shukla said the controversy surrounding bitcoin and other cryptocurrencies is making some hesitant to use them. However, those who see their potential are finding innovative ways to mine cryptocurrencies to transform their financial operations.

Additionally, Shukla revealed that some fintech companies are tackling the problem of price volatility with an interest rate based on a ratio of the value of the cryptocurrency to the amount of the loan, with a margin call issued. if the ratio is less than a certain percentage, such as 65%. If it falls to 30%, the assets are liquidated and their value stored in USD. It is also crucial to note that transactions involving cryptocurrencies do not have to be entirely cryptocurrency-based. Although some transactions may be conducted entirely using cryptocurrency, investors and sellers may wish to use or receive cash for part of the payment.

“It is important to be aware that government agencies and third parties involved in a given agreement may require cash payments for their services,” Shukla added.

Nonetheless, buying a property or house is considered less time-consuming and smoother with Non-Fungible Tokens (NFTs).

Khandare said: “As NFTs have become profoundly multi-faceted tools, proprietary technology that includes a legal framework, allows NFTs to replace ownership of property has also been developed, allowing purchase records to be deposited on the blockchain with legal documents, once an arduous task that could take weeks can now be accomplished almost instantly, thereby reducing costs and allowing buyers to purchase a property faster than ever before.

Additionally, DeFi cryptocurrencies or fiat currency seem to be emerging as a perfect intuitive for buying real estate online.

According to Khandare, with younger generations of potential buyers, who have grown up online and use the web as their marketplace of choice, will likely find buying real estate online using DeFi, cryptocurrency or fiat currency perfectly intuitive. . When ownership of assets is shared, NFTs can be used to obtain mortgages from lending platforms. However, investors will need to stay well informed regarding regulations, which may change over time as this form of investing becomes more popular. They should also hire a legal expert who has expertise in blockchain technology to help them with such transactions.

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