The cryptocurrency boom of the last several years carries implications across a myriad of market areas. From the trading floor to tax law, this unique asset class gives many investors an array of options. And as the acceptance rate opens new avenues, some look to cash in while using cryptocurrency for home purchases.
However, for others, the risks could outweigh the rewards.
Cryptocurrency And Crashes
As we’ve seen very recently, the cryptocurrency market is anything but rock solid. Where the traditional stock market shifts on speculation or supply and demand, the cryptosphere can tank from a single tweet. This may be fine for those making quick cash from their computer, but it can spell chaos for real estate purchases.
With such a volatile reputation, cryptocurrency turns off many sellers for fear of fluctuation. Since real estate, especially now, is so appreciation-prone, many sellers won’t deal with the doubt inherent in cryptocurrency. What might have a value of over $50K per coin during closing could tank before the ink even has time to dry.
From The Experts
Alena Kairys, a content developer and writer for national mortgage company NFM Lending is excited about the prospect of using cryptocurrency, but again warns of volatility.
“This is still a very new and cutting-edge tool for potential homebuyers,” Kairys says. “We’re seeing it more and more, but with any new technology or tool, there come risks. In many cases, it’s hard to find a buyer comfortable with the fluctuation.”
She advises finding qualified pros who have experience in these markets.
“If you can, try working with an agent or lender experienced with cryptocurrency home sales,” she said. “These days, there are more options with so many trying to stay ahead of the curve.”
The Bottom Line on Using Cryptocurrency For Home Purchases
Using cryptocurrency to purchase a home is certainly something many consider, especially with its growing popularity. But with so much volatility and market flux, you have to hold out for the right seller and situation. As with any speculation-based investment, the rewards do not come without considerable risks, and finding the right team is key.
