Bitcoin is a digital decentralised method of payment and even though users’ identities remain private, the transaction of every bitcoin can be traced using blockchain technology. This is a database that is shared by the bitcoin community. Bitcoin tax is completely dependent on the country, the IRS in the U.S said that they considered it as property, and they calculate each transaction as capital gains tax.
How to use Bitcoin to purchase property
The only thing needed for a transaction is for both parties to agree on this method. Bitcoin hopefuls are trying to purchase various things with Bitcoin like pizza, pay for doctor visits and even buy property.
The first successful real estate deal using Bitcoin was done in Austin Texas. The client selling their property requested that bitcoins be converted to dollars. They then used BitPay which is an international bitcoin service provider. As many may be aware, Bitcoins value doesn’t remain the same, it fluctuates on a daily basis so ultimately it is very risky for the buyer since the seller’s fixed dollar amount remains unchanged.
The pros of buying real estate with bitcoin
Once everything has been signed, transaction takes a maximum of 1 day to be completed but can also be done in as little as 10 minutes. However, it is good to go with a seller you know you can trust because if you need to reverse the transaction for any reason, both parties must agree on this. Bitcoin transactions cannot otherwise be reversed.
How to buy new homes with bitcoin
It is not the same buying a home that was previously owned and buying a brand-new home. Since there is no previous owner you will not have to deal with the seller’s emotional relationship with the home. Often this is what plays a role in the negotiating process of the home.
With any home, whether new or pre-loved, you will have to decide on your budget and ensure that you get the relevant financing before you begin your house hunting journey.
Advantages of bitcoin as a payment method
- You receive international payments, quick – you can receive payments from blockchain with a trusted provider from many different countries in a matter of minutes.
- Price doesn’t change – even though bitcoin is constantly changing, when dealing with a reputable provider, they will shield your price.
- Once the payment has been confirmed the service provider will deposit the funds into your bank account.
- Emails are easy to send – Within minutes you can be up n running as most trusted service providers have an email billing tool. The buyer will receive an email bill and he is expected to pay the bill at a locked-in exchange rate.
If you want to purchase a home using this method, all you have to do is buy bitcoin for dollars or the currency you prefer, ensure that you find home owners that are willing to transact using Bitcoin services.
May 28, 2019