Cryptocurrency

Why Blockchain Matters More Than You Think

What Is Cryptocurrency?

A cryptocurrency is a form of money that is digital. There are two significant ways in which it differentiates from other forms of currency. First, cryptocurrencies are purely virtual, which means that they do not exist as a physical bill or coin. Second, most cryptocurrencies are decentralized, which means they are is not issued from a central bank. This allows people to exchange cryptocurrency without involving financial institutions. There are over 2000 cryptocurrencies in use today according to coinmarketcap.com, the most popular cryptocurrency ranking site. Bitcoin is known as the first and most stable decentralized cryptocurrency in the world. As this currency is exchanged between parties, a block of information is added to a publicly viewable chain of data that keeps a record of all transactions made via blockchain technology. Ethereum is another form of cryptocurrency that uses smart contracts to complete transactions. For instance, a smart contract will state that when a consumer pays the supplier a set amount of Ether tokens, the supplier will provide the consumer with a product or service. These transactions are also public.

What Companies Support Cryptocurrencies?

Though cryptocurrency is a relatively new method of completing transactions, many forms of cryptocurrency are gaining support from large corporations. Today, more than 100,000 merchants worldwide accept this digital currency as a form of payment for products and services, including well-known companies like Virgin Airlines, Microsoft and WordPress. NASDAQ has also announced plans to allow Bitcoin futures to be traded on its electronic exchange. Joining this list, K-Merchant which has created proven processes and procedures for accepting Bitcoin, Ethereum and other cryptocurrency to buy or sell real estate.

How Are Bitcoin, and Other Types of Cryptocurrency Used to Purchase Real Estate?

Bitcoin and other popular cryptocurrencies like Ethereum are being used to purchase real estate all over the world. From home services to purchases and sales, the industry is exploring various ways to use cryptocurrencies. Property buyers are now paying with cryptocurrencies while sellers have the option to accept the digital currencies directly or have them converted into USD. The power, openness and security of the blockchain are also being explored by industry stakeholders as a viable option for recording property titles and transfers during the sales process.

Patrick Iturra Strategic Advisor