Tales from the Crypto..Bitcoin …
You probably have heard the word Bitcoin. It along with the rest of the cryptocurrency group are pretty much headlining it lately, showing up in the media – its an easy media piece and doesn’t ‘offend’ anyone, except perhaps the Federal Reserve! It is hurting people though…read on.
What is it?…..cryptocurrency, is a digital form of currency (payment) that was created by using computer generated blockchain sequences so people can buy or sell ‘things’….what makes many government agencies uncomfortable is that it is can be a non taxable and relatively untraceable way to exchange money which is why you are starting to see some countries and some states starting to regulate.
The general public is more familiar with one name – Bitcoin, kind of like the word ‘kleenex’, which has become the generic name for nose tissue, however, Bitcoin is one of hundreds and hundreds of cryptocurrencies that are out there. The currency is being used in a peer-to- peer market.
It can have huge market swings, for example, as of today, Jan 16 Bitcoin fell approximately $1300 in approximately 1.5 hours from its 15,000 position.
There are a lot of people and organizations that have or are starting their own Cryptocurrency. Some of those ‘players’ are bilking the general public, which is another reason for governments stepping in to try to regulate.
If you look around your area, you will probably find a currency or at the very least a group that meets to discuss the currency. We have at least one group,here in the Triangle, who get together to exchange ideas and discuss the ‘mining’ of cryptocurrencies.
And if you think, no one you know is using it, take a look at some of the online stores that are accepting cryptocurrencies for payment, companies like Amazon, CVS, Home Depot, Subway, JC Penney, Overstock, Microsoft, Etsy, Expedia. Currently they are accepting Bitcoin and another cryptocurrency.
I think the main use right now though is investment.
E Commerce is changing the way we will all do business. I mean, don’t you find it a bit ‘old school’ to dig out actual cash from your pocket or wallet? So many people deposit their weekly checks electronically, people pay for items with their debit or credit cards. Many of my clients don’t do checks.
Cryptocurrency will affect how we buy or sell real estate too. There are already some real estate transactions that have been done using cryptocurrency. One of them is Propy which is supposed to make it easier to buy and sell real estate across borders. One of the reasons I am watching this is because its relatively easy to buy in the U.S and Canada. I don’t really understand what the purpose is, other than to buy real estate in order to put their money somewhere that legitimises those funds perhaps.
I am also seeing some major real estate firms overseas, allowing rental transactions to be paid in Bitcoin, Litecoin and Dogecoin, to name a few.
This week in San Francisco, there is a World Crypto Economic Forum, its the first in a series of events around the world designed to support the crypto community.
Bitcoin, Ethereum, Dogecoin, Litecoin are some of the cryptocurrencies being used in real estate transactions.
I don’t think cryptocurrency is going away.
Its like the wild wild west of currency or the glory days of penny markets. And yes, some consumers are being hurt and taken advantage of. So here , in a nutshell are some scams to beware of:
Here is a great article about them. We just don’t have enough space to write about it all…..
Look, if you go to the site BitcoinTalk you can catch up on a lot more than I can tell you about here.
So back to my original paragraph, if you think its going to go away…..you are need to rethink and while we don’t see homes being in this area being purchased using cryptocurrency…it could very well happen in the our future. I am not advocating you invest in cryptocurrency. However do read about it.
When you are ready to purchase a home using American dollars and or a mortgage loan, give me a call
919 561 0411