Though real estate professionals are still wary to trade properties using cryptocurrencies, bitcoin use is slowly progressing — despite a few hiccups.
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The industry's gradual adoption is of little surprise considering bitcoins are being used in the retail and restaurant sphere already. The cryptocurrency is now showing up in real estate closings across the country, with some investors even using bitcoin as a way to gain an upper hand over their competitors, CNBC reports.
It has not all been smooth sailing, however, as many within the industry are still uncomfortable with this method of payment. This division can cause problems when closing a deal.
If a buyer chooses to pay with bitcoin but a seller is uncomfortable with the electronic currency, the funds must be converted during the deal, as was the case with a single-family home transaction in Texas last month, CNBC reports.
Bitcoin's value fluctuates daily, similar to other currency like the U.S. dollar or British pound. That, coupled with little government regulation and a lack of understanding about how bitcoins are taxed, can make converting bitcoins into cash during a real estate transaction complicated.
These challenges, along with the fact that Bitcoin has been a fixture of criticism and uncertainty over the years because of its association with money laundering and online crime, have prevented this method of payment from truly taking off in the real estate market to date.
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