Everybody is talking about Bitcoin again and with good reason. In the past year alone, the value of one bitcoin jumped from around $750 to $17,500. This huge spike created substantial wealth for thousands of bitcoin holders around the world, and many are turning towards real estate with their newfound riches.
- Bitcoin has already been used residential and commercial real estate transactions
- Dubai-based commercial real estate developer, Knox Group, allows buyers to pre-pay for properties with bitcoin
- Knox Group is on track to complete building two new residential towers and a shopping by 2019
- Blockchain technology and cryptocurrency, in general, are disrupting the real estate industry
In the past year, Bitcoin has been a part of a wide variety of real estate transactions. The emerging cryptocurrency gained even more steam as Knox Group, a Dubai-based commercial developer, became the first real estate company to accept Bitcoin officially.
Knox Group is currently building Aston Plaza and Residences in Dubai Science Park. The project consists of two residential towers and a shopping plaza. Buyers with bitcoin can already purchase units in the two residential towers set for completion in 2019.
“This a great opportunity for the crypto-currency community to offload some of its significant gains, especially the early adopters, and actually deploy them in hard-core assets which I’m building,” Knox Group chairman Doug Barrowman told Reuters.
Bitcoin is already making waves in the real estate industry, but its underlying technology – blockchain – is also disrupting the industry in its own way. Many emerging real estate investment platforms are utilizing blockchain technology and cryptocurrency to allow for strangers to seamlessly crowdfund large investment deals.
“The blockchain, ultimately, will usher in a new era where we can transact real estate deals in a much quicker fashion,” tech expert Jason Ray told Aquicore. “At the end of the day, being able to transact quickly comes down to your certainty that everything has been buttoned up.”
“You understand what property you’re purchasing, you understand the legacy of that property, you know; who are the previous owners, how efficient is the property, are there any liens that would preclude you from being able to do a clean transaction,” he continued. “If you can have all of those attributes stored in a fashion that is extremely difficult, if not impossible, to tamper with, and it conveys perpetually, then that has a profound impact on your ability to transact quickly.”