Crypto used as a means of payment to buy houses in Spain
- Crypto as a deposit technique is used in Spain to buy real estate
- Lenders leave less safe roads of speculation for safer choices
- Interest in these instruments has increased to 400% since November
Individuals buy houses without having been there. Some use crypto as a payment method anyway. The housing market has grown since last year in Spain and Europe, due to higher expansion spending and the war, which has changed the expectations some had for a monetary recovery.
As Europa Press figures indicate, the premium in the housing market has risen 400% since November, with many lenders rushing to buy properties unseen.
A few backers have even taken assets from different companies considered more dangerous, such as stocks and forms of digital currency, to take refuge in the real estate market. Rebeca Pérez, pioneer and CEO of Inviertis, an organization that allows clients to invest resources in rental properties in Spain, gave her interpretation of what is happening in the housing market. She expressed:
Crypto investments re-evaluated
Investors are withdrawing everything they had from the financial markets and investing resources in land to protect their resources, a situation that has deteriorated since the Russian military intrusion into Ukraine.
Pérez agrees that crypto and stock market backers see landholdings as a more stable business that offers less variance than stock or crypto markets, and further provides them with the ability to enter and exit the market efficiently due to popularity.
This exorbitant premium has also prompted some crypto-financial backers to buy properties directly with digital currencies, without exchanging them for government-issued currencies using banks. This can be very enticing to some funders, as Perez points out.
You turn risky interest into moderate interest, and assuming you were lucky enough to enter the crypto world in, say, 2012, you could buy a house for $200 at that time.
Obstacles in crypto
Nevertheless, there are still hurdles that need to be improved upon when exchanging this type with digital forms of money. These incorporate calculating the fees associated with buying and fixing the cost in bitcoin or another digital currency due to their unpredictability.
These activities are much more typical in Latam, where a few properties have been proactively sold for crypto, and there is broader recognition of resources as payout strategies.
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Generally, the earth attracts humble backers who generally do not trade in the crypto market. Nevertheless, after seeing their liquidity dwindle in banks, a few backers are beginning to turn to digital currencies as part of land speculation, with a peak in this pattern over the past couple of months.
Vicenç Hernández Reche, consultant at Inviertis and chief manager of the real estate lending activity of the board of directors and formalization Tecnotramit, acknowledged that the use of digital currencies in the real estate sector is still in its infancy. .
Elsewhere in the US, Justin Bieber’s supervisor sold a castle for $18.5 million in Bitcoin just two months ago, while New York-based real estate firm Algocap Real Estate said last year that it would start to tolerate digital forms of money like Bitcoin, Dogecoin and Ethereum. for exchanges