How does Bitcoin affect Argentina’s Property Market?
The rapid growth of Bitcoin and its popularity has led to more people curious about the cryptocurrency. However, exchange houses usually charge a commission of 3% per transaction, which the buyer would pay.
The total fee for buying bitcoins on one exchange house would reach 6%. In this article, you will know lots of things about bitcoin that affect the real state sector of Argentina.
In Argentina, the most popular exchange house for bitcoiners to purchase bitcoins is Bitex. La and Bahisexchange.com. In addition, purchases can be made using local bank transfers or via payment systems such as RapiPago, Pago Fácil, and Pagofacil. Visit wirtschaftszeit.at to get more information.
5 Ways how Bitcoin Affects the Real Estate Market of Argentina
Purchasing a house is typically regarded as one of the most significant important purchases a person will make in their life. It usually represents a significant investment for families, and it’s a way to create or increase social status.
In Argentina, where corruption and inflation still affect some people, property buyers include this specific category in their real estate purchase planning. So let’s see how bitcoin can affect it.
1) The legalization of Bitcoin in Argentina
In December 2014, the country’s government legalized Bitcoin and other virtual currencies as a payment method. This announcement was pretty crucial for both individuals and entrepreneurs since, this way, they were able to use cryptocurrencies legally.
In addition, such measures allow people to know that a country is open to an innovative and decentralized currency.
2) Cryptocurrency and cross-border payments
Buying a property in another country requires a money transfer which requires some time. This problem can be solved by using cryptocurrencies to move their funds faster, cheaper, and without causing too many headaches.
Thanks to the efficiency of Bitcoin when compared with traditional currencies, real estate agencies in foreign countries can benefit from it.
3) Reduce corruption in the industry
The international real estate market also has its share of corruption problems, which sometimes cause trouble for people looking for apartments or houses in another country.
However, by using cryptocurrencies like Bitcoin to make payments, buyers and sellers avoid these problems and make the process safe and transparent.
4) Bitcoin transactions can be tax-free!
Compared with traditional currencies, Bitcoin is subject to different taxation as it represents a decentralized currency that doesn’t need intermediaries or third parties to work correctly.
5) The first bitcoin-only house sale in the USA
In February 2015, Austin Craig, his wife Beccy, and their three children started a project called “Life on Bitcoin,” They set out to spend 100 days living without traditional currency.
Their main objective was to discuss what a family can do with virtual money. They purchased a house in Arizona and paid for it entirely with bitcoins at their experiment.
According to the current bitcoin exchange rate, the house near Phoenix is valued at 120 BTC, which equals around $400,000. Despite this, some people criticized the real estate purchase and said it wasn’t wise to use cryptocurrency.
However, you can already see how bitcoin creates a new industry and different payments methods.
3 Negatives of bitcoin that affects the real state sector of Argentina
1) Bitcoin volatility
Unlike fiat currencies, bitcoins are not backed up by governments or central banks, which means they don’t have a fixed rate. This aspect can be very annoying, and it’s one of the reasons why some people choose not to use bitcoins.
2) Bitcoin isn’t available everywhere
This is just another problem of bitcoin, together with their price volatility. The fact that some people can’t access certain websites or stores because they don’t own bitcoins is pretty frustrating, and it’s one of the reasons why cryptocurrencies aren’t used so often by people around the world.
3) Bitcoin isn’t a currency but an investment
Another problem in using bitcoins is that most people don’t use them as currencies or payment methods.
Instead, some people see digital coins as investments, and they’re working to buy them, convert them into other currencies, and wait for their price to go up before selling them again.
Even though there are some negative aspects of using bitcoins, it’s a cryptocurrency with a great future ahead. For example, you can see how properties and houses for sale in foreign countries are advertised as bitcoin-friendly in the real estate market.
This means that those who want to use bitcoins for different purposes will have more options from now on.