The rise of cryptocurrencies has made many people want to know how they work and how they can use them. Well, in relation to the real estate world, a user can make real estate transactions with cryptocurrencies to acquire a property. Today, some real estate companies already have assets and goods that can be acquired with cryptocurrencies. The team of blue world city Islamabad is here to guide you with cryptocurrencies. Keep on reading!
What is a cryptocurrency?
A cryptocurrency is a cryptographed digital value system that is used to make transactions, that is, a digital currency. The particular thing about this type of digital currency is that it works through blockchain technology or Blockchain. The chain block verifies the transactions made with the cryptocurrency and verifies the assets to which these transactions are made.
Can cryptocurrencies be used in Pakistan?
The use of cryptocurrencies is totally legal in Pakistan, in fact the use of digital currencies as a form of payment is regulated. And, therefore, it must be taken into account that purchases and income with digital currencies must be declared to the Treasury. Many real estate projects in Pakistan such as kingdom valley Islamabad have been using cryptocurrency to make sales.
What is the blockchain?
The Blockchain or chain of blocks (in English) is a technology that allows recording all transactions that are made with digital currency. The transactions are registered in the general ledger (ledger, in English) and a complete verification system is made through the Hash algorithm.
One of the benefits of cryptocurrency transactions is that they are secure, since by taking over blockchain technology, a decentralized system, transactions go through a security system that expands to many nodes.
Can a house be compared to cryptocurrencies?
The use of digital currencies in the purchase is something totally possible and also have income from them. Therefore, it is logical that you can buy a house with cryptocurrencies and, in fact, you can. It should be borne in mind that these are transactions that are not yet very common, since real estate transactions with cryptocurrencies are not very abundant. Although there are some real estate companies with many assets, they have the option of making transactions with digital currencies.
Problems of real estate transactions with cryptocurrencies
The main problem with real estate transactions with cryptocurrencies is the fact that the digital currency is very volatile. At the time these transactions are made it is important that an agreement regarding payment is made between the buyer and the seller. That is, find the equivalence in rupees (or in the currency of usual use) and formalize that value with the Tax Agency.
In fact, what is normally done when these transactions are made is to go to the notary. The owner of the property goes together with the buyer before the notary and that is where the equivalence between the value of the digital currency and the currency of habitual use is made and formulated. Thus, the value of the cryptocurrency remains stable until the transaction is made.
Can you rent a property with cryptocurrencies?
In theory, there is no reason why rent payments should not be made through real estate transactions with cryptocurrencies. In this case, as in the purchase of a property with cryptocurrencies, the equivalence between the digital currency and the currency of use must be established before a notary.
Benefits of real estate transactions with cryptocurrencies
It should be borne in mind that the payment of a house or rent is normally made digitally thanks to the digitization of banks. But, you have to bear in mind that sometimes they are processes that usually take time.
Therefore, real estate transactions with cryptocurrencies are beneficial at this point. This type of economic movement can be done between any user in the world and does not involve an added cost. And, in addition, it does not require a time for the transaction to be made. That is, the payment is much faster and more effective than with normal transactions.
The only bad thing is that the currency exchange must be done since the operations are registered in the currency of habitual use, that is, in our case, the rupee.
Buying a house with cryptocurrencies in Pakistan
The purchase of assets with cryptocurrencies in Pakistan is legal, therefore you can buy real estate with these digital currencies. In Pakistan the use of cryptocurrency is not very common, but you can begin to see in some real estate portals the option of doing the sale with real estate transactions with cryptocurrencies. Naya Pakistan Housing Scheme is one of the many real estate projects in the country that provides its investors with the opportunity to buy a house with cryptocurrency.
What must be taken into account is that the buyer will have to pay the capital gain that the transaction has reported and, obviously, must demonstrate where this amount of money comes from.
Sale of houses in the world through real estate transactions with cryptocurrencies
In the United States, for example, there are already portals that are specialized in buying real estate only with bitcoins (a type of cryptocurrency). What happens, according to some specialists, is that the value of bitcoin and, in fact, of any cryptocurrency is not stable, it fluctuates, so one day a house can cost, making the equivalence in rupees, Rs. 600.00 and the other day 530,000 or 620,000 rupees.
In conclusion, it must be taken into account that every day blockchain technology advances more and that it is a fact that there are already users who buy with digital currency. In fact, it is not surprising that a few decades most of the properties are bought through transactions with cryptocurrencies. Despite this, you should always take into account the fluctuations of digital currencies and known as a user what is best.