Why Developers Buy Real Estate in Bitcoin and Ethereum

The world as we know it now is in the 21st century, sometimes known as the digital era. After the epidemic hit, nearly every industry, including the real estate sector, transitioned to using digital methods. Real estate in Bitcoin and other cryptocurrencies has become a trend.

“When new things emerge in our world, it’s best to put some time into researching them and trying to gain an understanding. With that understanding, you’re then able to think about and plan for the new business applications for those things and the new ways in which your business may profit from them.”

  • American Author and Banker Hendrith Vanlon Smith Jr.

One may wonder, how do real estate transactions become digital? Cryptocurrency.

Photo of the text "cryptocurrency"

According to Kaspersky, cryptocurrency is a digital payment system that does not depend on banks for transaction verification. It is a peer-to-peer payment system that permits anyone, anywhere to make transactions.

Cryptocurrency payments, such as Bitcoin and Ethereum, exist solely as virtual records to an online database describing specific transactions, rather than as physical money passed around and exchanged in the physical world.

Transactions involving cryptocurrency funds are recorded in the general ledger. Digital wallets are where cryptocurrency is kept.

Suggested Read: Cryptocurrency 101: An Introduction To Cryptocurrency

The cryptocurrencies Bitcoin and Ethereum are the most popular in the world, including in real estate.

Image of Bitcoin and etherium figures

Satoshi Nakamoto, a pseudonymous developer or perhaps a group of developers, presented Bitcoin to the public in the year 2009.

Investopedia describes bitcoin as a cryptocurrency, or digital money, that acts as money and a form of payment independent of any single person, group, or entity, thereby eliminating a need for a third-party involvement, such as banks, in financial transactions.

It is granted to blockchain miners in exchange for their efforts in verifying transactions and can be bought on many exchanges.


Furthermore, Ethereum’s inventor, Vitalik Buterin, began his blockchain journey way back in 2011, through an initial interest in Bitcoin.

He researched and attempted unsuccessfully to construct applications on top of the Bitcoin blockchain.

He came to the realization that building an application on the Bitcoin blockchain is only possible if one creates an entirely new blockchain for each application. However, because this is extremely difficult, he realized that core elements of the blockchain had to be changed.

As a result, the Ethereum blockchain was born.

Today, there are people who are already using cryptocurrencies for real estate.

Yes, there is an unpredictability to cryptocurrency that may create initial resistance to the already unpredictable (and sometimes volatile) world of real estate. So why do people around the world still use cryptocurrency? Why are people still investing in cryptocurrencies?

Because despite the risks, the rewards you can reap are indeed gratifying.


Advantages of the cryptocurrency Bitcoin

1.)Inexpensive Transfer Fee

Bitcoin transactions are significantly less expensive than fiat currency transactions.

When investing in real estate in bitcoin, you can save much more.

Illustration photo of hand putting a coin on a piggy bank

One of its factors is that, unlike bank exchanges, Bitcoin transactions do not encompass third parties.

Alternatively, the blockchain of Bitcoin independently validates and collates transaction data.

The transaction fee is typically just 1% of the transferable Bitcoin amount, which itself is significantly less than what you would pay with a credit card or traditional bank transfer.

This enables real estate developers and purchasers to significantly reduce the costs, resulting in considerable savings during real estate transactions.


2.) Buying Real Estate with Bitcoin is Safe.

With Bitcoin, it eradicates illegitimate property ownership, resulting in increased transparency and security for all the involved parties in each transaction.

Photo representation of Digitization

Its fundamental blockchain technology documents and verifies all the network transactions without the intervention of a third party.

Moreover,  it keeps the data on an electronic public ledger that only the users have access to.

The log is irreversible, and even the clients can not alter the information.

The shared digital ledger of Bitcoin is used to settle money-transfer conflicts among both real estate developers and buyers.

Moreover, it fosters trust as well among the parties, ensuring that both parties conduct business with complete transparency.


3.) Confidentiality Revamped in the future of real estate

Traditional methods of payment, like cash and credit cards, often include third parties, which makes it difficult to keep transaction confidentiality.

Thankfully, Bitcoin provides the best solution to such problems because users can transact discreetly without sharing their personal identities.

Furthermore, private keys guarantee that only the owners of digital wallets have access to their Bitcoin assets and transaction records.

Photo representation of confidentiality and security with digitization

If you desire to invest in real estate properties with confidentiality, bitcoin is definitely the way.


4.) Quicker processing of payment by the means of Bitcoin

The ways of the conventional financial system are vulnerable to a lot of government and statutory regulations, which typically lead to considerable delays in the processing of the real estate transactions.

To verify the money transfers, both of the parties involved in that process must be present physically.

When using bitcoin cryptocurrency, the money transactions are digital and often take only a few minutes to finish.

Furthermore, blockchain technology enables the swift transfer of the property title, having saved time for both parties.


5.) The transactions in real estate in Bitcoin are seamless

Previously, people investing in real estate could only buy properties with fiat currencies, such as bank transfers and cash.

Cryptocurrencies, such as bitcoin, provide an alternate solution, it allows people to purchase real estate directly with digital currency.

It really has elevated capital accessibility, letting even unbanked communities purchase real estate globally without the government-imposed constraints of cross-border money exchanges.

Photo illustration of using bitcoin in a transaction

Moreover, besides Bitcoin, another leading cryptocurrency is Ethereum.

Suggested Read: Cryptocurrency Hybrid: Luxury Home Trend


Benefits of the Ethereum cryptocurrency in Real Estate

1.)Tokenization in Real Estate

The virtual securitization of the real estate assets, or in short- tokenization, is among the most amazing advantages of the Ethereum in the industry.

Photo illustration of security in the digital world

The assets in the real world, including real estate, real estate funds, revenue streams, governance rights, and more can be represented by digital assets.

Once tokenized, these assets could be partitioned into more granular parts, made available to a larger number of investors, and can be leveraged to increase capital.

When tokenized, the configurable blockchain of Ethereum allows for the secure and compliant digitalization of the said assets’ transactions and processes, such as issuance, trading, and lifecycle management.


2.) Decentralized Applications in Real Estate when transacting

In more simple words,  Ethereum is a decentralized platform that offers all of the benefits of blockchain technology, while also allowing the development of decentralized applications (DApps).

Ethereum, like Bitcoin, does have its own currency, which is called Ether, that can be mined, bought, and sold.

Just like the cryptocurrency Bitcoin, it can be bought and sold. Although they appear to possess similar goals, purposes, and capabilities, they actually do not.

Bitcoin, for example, was invented as a digital currency that has the ultimate objective of replacing traditional fiat currency.

On the other hand,  Ether is so much more than just a digital currency; it allows developers to use smart contracts to establish decentralized applications.


Because it is thought to have long-term benefits, real estate land will never depreciate. Land, as property, is perhaps the most important asset because it is the only asset that cannot be depreciated. The land is priceless; like gold, it retains its luster and value over time.

But where can we find the perfect land?

In Alabang Vista, the perfect real estate awaits you.

In terms of buying real estate, location is one of the most crucial factors; for it is connected to the price appreciation of the property.

Image of a luxury home within the world-class community of Portofino Alabang

It is not surprising that the buyers are usually looking for properties that are close to and accessible to essential industries, including hospitals, schools, malls, grocery stores, and so on.

Properties in accessible locations are likely to command higher prices in the future. Buyers are willing to pay more to own homes in a specific location within a community.

Vista Alabang is in a strategic place near Evia Mall, which is a lifestyle center that has several restaurants, fashion outlets, grocery stores, a cinema, hardware stores, and so much more. There are nearby hospitals as well in Alabang Vista,  such as the South City Hospital and Medical Center, and transportation hubs.

The real estate in Vista Alabang has a higher market value, which is definitely worth investing


Photo within the luxury community of Portofino Alabang

Like what the quote in the introduction said, it is indeed best to do our research on the new things that come into our world. And one of those things is how cryptocurrencies work with real estate investment.

Once we are able to fully grasp those concepts, we can be able to profit from them.


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