The real estate sector, known for its complex transactions and bureaucratic processes, has begun to undergo a significant transformation thanks to the adoption of digital currencies known as cryptocurrencies. This technological revolution promises not only to simplify transactions, but also to offer new investment and financing opportunities.

Spain is a pioneer in the implementation of this technology for property purchases and the undisputed leader in terms of the number of homes that can be purchased through this innovative payment method. Below, we will take a closer look at how cryptocurrencies are changing home buying and selling, their benefits and main challenges.

What are cryptocurrencies?

Cryptocurrencies, led by Bitcoin and Ethereum, are redefining real estate transactions by offering a digital alternative to traditional currencies. Their decentralised and secure nature allows for fast transactions without border limitations of any kind. This shift is creating a new paradigm in the sector, making it more efficient and accessible to buy, sell and finance property.

Why use cryptocurrencies to buy a home?

In terms of benefits, the cryptocurrency payment method allows for almost instantaneous transfers, eliminating the need for lengthy waits, significantly reducing transaction costs. This is especially useful for international purchases, where traditional bank transfers can be slow and costly. In this way, the reduction in associated costs and timeframes has a very positive impact on the liquidity available in the real estate market, allowing buyers and sellers to close deals more quickly.

Main advantages of buying a house with cryptocurrencies:

• Ultra-fast transactions

• Reduced costs common to traditional sales and purchases.

• Bureaucratic obstacles imposed by country borders are eliminated.

Are they secure?

Blockchain technology, which underpins cryptocurrencies, provides a public and immutable record of all transactions, ensuring greater transparency and reducing the risk of fraud, as each transaction can be independently verified. The traceability and immutability of the blockchain brings an unprecedented level of trust to real estate transactions, benefiting all parties involved.

Despite its many advantages, the implementation of cryptocurrencies in the housing sector also faces several challenges: cryptocurrencies are known to be highly volatile, which can lead to fluctuations in the value of real estate transactions. Buyers and sellers need to be aware of the risks associated with market changes: volatility can affect both the price of the property and transaction costs. In addition, the regulation of cryptocurrencies varies significantly between countries, which can complicate international transactions. For this reason, it is crucial that participants understand local laws and ensure their commitment to compliance to avoid legal issues.

How to buy a home with cryptocurrencies?

Buying a home with cryptocurrencies may seem confusing and complicated. However, the process is very simple if you follow a few key steps. First, you need to find a seller that accepts cryptocurrencies as a method of payment. Next, it is advisable to seek specialist advice on cryptocurrency real estate transactions. These professionals can offer guidance and ensure that the transaction is done correctly and securely. The final step is to acquire the necessary amount of cryptocurrencies to close the purchase. This can be done online, where FIAT money -a currency whose value is backed by the law of a state- can be exchanged for cryptocurrencies such as Bitcoin, or other digital currencies.