Acquiring real estate through cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB), is already a reality in many countries, including the United States, England, and Brazil. With the rise of this market and the increasing acceptance of these assets as a legitimate form of payment, investors and buyers are exploring new possibilities for transactions with cryptocurrencies, including the real estate sector.
Cryptocurrencies are digital currencies that use encryption to ensure transaction security and control unit creation. Blockchain technology records all transactions, unlike traditional currencies issued by governments. Bitcoin (BTC), one of the most well-known cryptocurrencies, was created in 2008 by Satoshi Nakamoto (pseudonym) in response to the financial crisis of that time. Since then, several other cryptocurrencies have been launched, each with its own characteristics and purposes.
Regarding the real estate sector, reducing the bureaucracy in acquiring a property is among the main advantages pointed out for operations through cryptocurrencies due to some inherent benefits of digital currencies. These include more efficiency in processes as a whole, greater global buying access, as cryptocurrencies are not restricted to geographical borders and can be used anywhere in the world, and lower costs with intermediaries and conversions since traditional real estate transactions usually involve other parties, such as real estate agents, lawyers, and financial institutions, and even greater security in transactions due to their data protection and operations through encryption.
The purchase of real estate with cryptocurrency comes with some challenges and reservations. The main obstacle to the widespread adoption of this type of asset is the resistance to traditional payment methods, especially among sellers and real estate institutions. In addition, the technical complexity involved in the operation, the lack of specific regulation of this modality in some countries, and the volatility of the market are also factors to be considered, since the quotation of cryptocurrencies can vary dramatically in short periods, which can cause uncertainties for both the buyer and seller. Both parties must be willing to deal with this volatility or find ways to mitigate the risks involved.
It is also interesting to mention other initiatives involving the real estate sector and the cryptocurrency market. In 2018, Jeffrey Berns, an American entrepreneur and lawyer, acquired a significant area of 67,000 acres of the Nevada desert in the United States, intending to transform it into an experimental community called Innovation Park around blockchain technology, "which will be developed in a smart city with a decentralized Blockchain underlying all infrastructure". In 2022, Rio de Janeiro, Brazil, announced that the population could pay taxes related to urban properties and constructions through cryptocurrencies as of 2023. This made Rio the first city in the country to accept tax payments through this type of asset.
Despite the challenges, negotiating and purchasing real estate through cryptocurrencies present a new perspective for the real estate market. As they continue to gain popularity and be adopted by more people, their acceptance as a form of payment for real estate may gradually increase. However, buyers and sellers must be well informed about the legal, tax, and financial implications of this form of transaction. They must consult specialized professionals, such as lawyers and real estate brokers familiar with the subject, to ensure a safe and successful negotiation.
