Numerous cryptocurrencies are currently in circulation and a topic of conversation for many private investors. But cryptocurrencies can also be used when buying real estate and significantly simplify payment processing. In any case, it is advisable to find out more about the structure and potential use of individual cryptocurrencies. Benefits and risks can shed light on how traditional payment processing is changing.
One of the most important developments after Bitcoin is the blockchain-based system Ethereum, which appeared in 2015. In addition to the first cryptocurrency Bitcoin, there are now some noteworthy alternatives, the so-called Altcoins, which work on the basis of blockchain technology or fulfill the same function as Bitcoins. The developers try to offer better solutions to the scaling problems or to avoid high transaction fees.
Real estate financing: Advantages of the new payment option
Theoretically, based on blockchain technology, the purchase price can be processed within seconds to a maximum of 30 minutes. Depending on which wallets and technologies are involved, the payment takes place at different speeds. In contrast, the classic bank transfer takes several days. Banks also do not release sums of a considerable amount without checking. The conventional transfer is often very time-consuming and often involves a personal visit to the bank.
Payments with cryptocurrencies are considered to be extremely secure in processing. Unlike bank transfers, it is not possible to reverse payments. Due to its technology, payment with cryptocurrencies has a very high level of transparency. Blockchain solutions can be used to check online at any time whether the payment has been made. The obligation to provide evidence of equity via the wallet address is just as uncomplicated since it can be checked at any time whether the money is available. This can take longer if you ask for a bank account statement, which can also be falsified.
Cryptocurrency technology provides security and fraud protection through public key authentication. In this way, for example, real estate owners can independently check whether potential buyers are trustworthy and solvent. In addition, trading platforms that specialize in trading cryptocurrencies enable the exchange of different currencies in an uncomplicated manner.