How Cryptocurrencies Are Taking On The Real World

Cryptocurrencies are no longer mythical investments; they are here and here to stay. From enabling real estate investors to amp up their game to being increasingly used in eCommerce transactions between consumers and businesses, digital currencies are quickly becoming the norm as a form of payment.

In fact, the popularity and use of cryptocurrencies have come so far since their launch that federal authorities have moved to regulate cryptocurrency usage with the tax authorities. Its expansion to the real world comes at an opportune time too, as businesses undergo a digital transformation right before our eyes. With consumers and businesses adopting a digital-first mindset, it is the perfect time to witness the expansion of cryptocurrencies beyond the digital realm and into the real world.

Consumers And Investors Are Now Buying Their Homes With Bitcoin

After headlines were dominated with stories of people using Bitcoin proceeds to purchase a home and pay off their mortgages, the use of cryptocurrency in real estate has only continued to grow. In response, we have seen the introduction of a bitcoin mortgage as lenders roll out their own cryptocurrency mortgages.

It is now the norm to see listed properties accepting Bitcoin payments like this luxurious 2 story home in Florida. One perk of buying a home with cryptocurrency? The reduced closing time. Transactions are completed in minutes, compared to the standard weeks with conventional payments.

The Acceptance Of Cryptocurrency For Online Payments Continues To Explode

The adoption of cryptocurrency payments continues to accelerate, with more companies announcing their intention to accept digital currency as payment. Major companies like Microsoft, Axa Insurance, and Visa now accept cryptocurrency payments, in exchange for goods and services. In March this year, Visa confirmed reports that it was testing a pilot scheme with Crypto.com to accept Bitcoin transactions.

Beverage giant Coca-Cola has also embraced the use of cryptocurrency. Across New Zealand and Australia, there are now over 2,000 vending machines that accept cryptocurrency payments. Finally, marketplaces like Shopify now allow merchants to accept cryptocurrency as a form of payment, a large step forward for online retailers.

Entrepreneurs Can Now Invest In Large Scale Real Estate Partnerships With Cryptocurrency

Cryptocurrency is also making its way into the real estate investment market. In February 2019, it was announced that Inveniam Capital Partners planned to tokenize $260 million of real estate to investors. The company intends to tokenize 4 private real estate transactions and market its offices in Miami as its initial offering.

The Miami workspace was worth $66.5 million and tokenized using Ethereum. Since then, Inveniam has continued with a series of tokenized real estate investment offerings for infrastructure across the country, including a water pipeline in North Dakota.

The move by Inveniam was generally expected, as cryptocurrency investors continue to see ways to transfer the use of digital currency to more conventional investment vehicles like real estate. It is also right on trend, as tokenization has been a leading headline in 2021 and coming years. Fractional ownership in real estate has been in the background for some time and along with the addition of cryptocurrency, it provides a solution to investors looking to diversify their portfolio risk by adding more stable real estate investments.

It is clear: cryptocurrency is not just the present, it is the future of money. As time goes on, the line between digital currencies and real-world transactions will become more blurred. While there are still a  few hiccups to work out, it is expected to be a continued smooth transition.

Photo by André François McKenzie on Unsplash