Cryptocurrency payments will be common in real estate transactions
By the end of 2022, experts predict 1 billion crypto users. In the last two years, many types of services accept cryptocurrency payments, including real estate. What will be the factors that prove that cryptocurrencies are a popular method when investing in real estate? Let’s find out with Moonka in the article below.
Why pay with electronic money?
Cryptocurrencies are decentralized, transparent asset classes with a total market capitalization of $1.6 trillion. As the DeFi trend has grown in recent years, many businesses have integrated the technology by accepting payments in cryptocurrency. A few cryptocurrencies are accepted such as Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, and stablecoins. In which, stablecoin is a stable currency, a 1:1 reference value with a national currency. For example, two well-known stablecoins like USDT and USDC are equivalent in value to USD.
A report by Crypto.com in January predicted that there will be one billion crypto users by the end of the year. As of March 2022, the total world population is approximately $7.9 billion. If the prediction is correct, 1 out of every 7 citizens in the world is a crypto user. Of course, the number of crypto users in each country will vary. However, countries that accept cryptocurrencies have the advantage of updating this trend better than others.
According to a survey by the Baby Boomer research group on anti-inflation solutions. In which, 5.2% of surveyors think that they will reserve assets in real estate. Next, 4.9% choose to invest in Bitcoin and Ethereum to fight inflation.
Types of Real Estate That Accept Cryptocurrency Payments
Currently, two real estate models accept crypto payments. It is the virtual real estate of Metaverse Blockchain projects and real estate with practical use-value.
For virtual real estate, the group of potential customers is businesses or organizations that provide services. The two transfer platforms that provide virtual real estate are The Sandbox and Decentraland. If famous businesses like Skechers, Warner Music Group, and Samsung choose Decentraland. Then payment giants like HSBC and Standard Chartered chose The Sandbox.
For real estate or physical real estate, there is also significant crypto adoption. However, this time is considered an early stage for businesses providing real estate transaction services to enter and participate in the cryptocurrency market. Perhaps, the encryption of a large asset class with legal procedures has caused many complicated problems for these businesses.
Moonka is the pioneering real estate tokenization platform in Asia
Previously, Moonka was the pioneer real estate crypto platform in Asia. But the growing popularity of cryptocurrency payments has led many businesses in the same industry to follow in Moonka’s footsteps to enter this market. This is a good sign of progress when businesses keep up to date with international trends. With the number of crypto users growing rapidly.
Besides, the golden age of owning real estate in the US is 25 – 34 years old. According to a source from the investment newspaper, the group of young people under the age of 35 accounts for about 36% of real estate buyers, data from 2021. Notably, 17% of people are under the age of 30 and are the customer group. investment knowledge. The age group of 18-35 years old is the group of people with a better rate of access to technology than the group of 35-60 years old.
In 2021, Moonka completed the sale of 3 properties through encryption technology. Through the stablecoin payment method, the opening time was just under 90 minutes and a record 55 minutes for a product. The transaction processing speed on the Blockchain platform is fast and the transaction fees are low. Moonka has completed withdrawing profits to help investors enjoy a profit of 10% with product B26 and 11% with product C10.
Two businesses in the real estate industry accept cryptocurrency payments
On April 27, 2022, Dubai-based real estate giant Damac Properties released a press release accepting payments in Bitcoin and Ethereum. After the Dubai Financial Services Authority (DFSA) introduced the crypto investment regulatory framework. Many businesses in Dubai have entered the crypto space to attract foreign investment as well as source international exports.
An advantage with Damac Properties is that 3 exchanges Binance, FTX, and Kraken are licensed in Dubai. This drives demand for exchanges while helping Dubai to be the UAE’s crypto hub.
Also at the end of April, a Miami-based startup, Milo Credit, allowed customers to mortgage real estate based on cryptocurrency. Unlike the direct way of buying like Moonka or Damac Properties, customers with loan needs can mortgage with Milo Credit by pledging customers’ digital assets. It is known that the loan has an interest rate.
Thank you for reading this article. Wishing Moonka investors a successful investment!
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