When bitcoin started in 2009, only a few people developed an interest in it. As early as 2010, a bitcoin went for just $1. Any investor who would have predicted that it would hit $4,600 today would have made a lot of money. After discovering the benefits of transacting using bitcoin, industries such as Miami real estate have started to use it.
Bitcoins vs. Currency Transactions
Bitcoin is a flexible currency as it works store of value and a digital cash system too. Businesses incur enormous costs when transacting using banks. American and Australian banks have been found to charge about $4,000 for transactions worth $100,000. However, deals worth millions of dollars are charged less than $10 when transacted using bitcoins.
Bitcoins are much faster to transact with than credit cards. This is mainly because no central server or third-party player is required to settle the transaction. As a result, a transaction that can take weeks or even months when using credit cards takes about ten minutes when done using bitcoins.
Bitcoins Penetrate the Real Estate Market
Due to the transactions fees incurred under the traditional currency method, Miami real estate players have slowly started to adopt bitcoin. For instance, one trader, Mike Komaransky listed his Miami property in both bitcoins and US dollars. When reached, he said trading in bitcoins is safer than cash as the process is irreversible and fast.
Most believe that the use of bitcoin in the real estate sector will revolutionize the industry. Globalization is also playing a significant role in changing this industry. Miami is not the only city that has discovered the great impact bitcoin can have in its real estate sector. Dubai and other cities around the world have embraced cryptocurrency.
The continued use of bitcoin in the real estate sector will have a significant impact on other industries. Other sectors are likely to follow suit and leverage the efficiency of transacting in bitcoins. Will continued use of bitcoin lead to a development of new currency? Only time will tell.
Who is Samuel Strauch
Samuel Strauch is a prominent American based real estate investor. His success has partly been due to his rich academic background. He has a degree in business from Hofstra University. Besides, he has studied at Harvard University and the Erasmus University.
Strauch joined the banking industry after completing his education. After some time, he ventured into real estate business. About 15 years ago, he started his real estate company to meet the growing demand in Miami City. Besides, he has invested in various internet and restaurant-related businesses.