Bitcoin ... in real estate?
If Sheldon Cooper, the theoretical physicist famous fictional series Big Bang Theory, talks about Bitcoins, Bitcoins is that they talk about. But few people had heard of Bitcoin five years ago. And even fewer people were aware that it would be the first of many criptomonedas that would emerge later and almost no one thought that this 'digital money' be taken seriously as currency.
However, there are more than 7,000 ATMs in Spain for Bitcoin transactions, you can book accommodation for one year at Airbnb and there is even a cafe in Madrid where paid in Bitcoins.
In the past five years, criptomonedas have reached a turning point. Bitcoin has joined coins as Ether, Dash and Ripple and many of them not only have transactional value but can also be used in so-called 'intelligent contracts': computer protocols to facilitate, verify or enforce negotiation or performance of a contract.
These criptomonedas have also helped new companies raise money through initial offerings of coins (ICO). Forbes estimates that since the ICO introduced a few years ago, new companies have raised $ 2.3bn using this funding model.
Soon even it is possible to buy a property with these new coins. Last month, the British entrepreneur Michelle Mone put on sale its luxury apartments in Dubai "Bitcoin can not ignore, he says".
To understand the criptomonedas, you must first understand Blockchain.
Blockchain is a digital accounting book where transactions taking place in their software as a 'block' is recorded, and those blocks are encoded one after another in "chain". That chain is verified and placed in a 'no apuñalable' digital stone 'volunteer' who usually paid using them criptomonedas - this verification process is called 'mining'.
The process is restricted by complex rules written in the code Blockchain software.
Think of a document on the network in which several people have access to a "thing" (data, money, contracts, etc.) and whenever a change is made, it keeps track of what was that change, who he did and when. That record exists so that all parties invited to see, but can not be modified, you can only keep adding.
The criptomonedas are simply a means of payment that is based on the Blockchain software. They are digital rather than physical entities, but they act in every way as the traditional currency.
Blockchain: the new phenomenon set to transform the way we work
It is currently estimated that there are about 16 million Bitcoins in circulation. Miners, remember: those who seek these coins on the net, they can sell, exchange, shop or distribute Bitcoins to your liking, but there are only 21 million Bitcoins.
Other criptomonedas as Ether and Ripple have a similar operating model, but while Bitcoin is only a financial transaction, Ether is based on Blockchain of ethereum, which also allows intelligent exchange contracts, including documents and data.
Since bitcoin.orgThey suggest that there are "multiple benefits, including processing / settlement of transactions in real time; reduced transaction costs; control identity information, because users can share as much about themselves as they wish; and accessibility democratized because anyone with an Internet device and can transact. "
The criptomonedas are not without risks and challenges.
One problem is volatility of its value since the value of the currency fluctuates constantly throughout the day and spread can be quite large. Bent and reduced its dollar value in years ago few short periods.
In the long term, are observed value fluctuations subside, but hardly Bitcoin never be the replacement of the Visa card that claims to be. On the contrary, experts suggest that it is more likely to be a safe way to store money, something more like gold.
But do we prepare?
The Financial Conduct Authority (FCA) in the UK has already warned investors in ICO to be prepared for the possibility of a total loss (ICO most are not regulated by the FCA).
This is just the cusp of what many believe will be greater regulatory crackdown on criptomonedas. In China, the use of ICO was banned and closing Bitcoin exchanges ordered.
After 2016 they leave aside the regulation in Europe today are to work and is expected to be developed during 2018 by the European Commission. The goal: to prevent their use for money laundering. lot parameters are regulated but the most remarkable is the identities of those making transactions, then leaving these criptomonedas the level of cash payment.
In Spain, however, the Ministry of Tourism, Energy and Digital Agenda does not seem to be in a hurry to regulate the challenges posed.
You operate in Bitcoins in real estate?
That the properties will be in action begins to take shape as a possibility. The Blockchain technology seems to find a perfect place in the real estate world with intelligent contracts, and there are real estate companies in the United States who work solely as Blockchain Propy.
Title registration of real estate in Blockchain is in a relatively early stage, but there are already many notaries and registrars who are working on the subject.
It is possible that the property is far from using criptomonedas since in Spain despite the emergence of companies like InviertisThe level of digitalization is low compared to other industries, highly digitized, such as telecommunications and music.
Pere Viñoles, director of Colonial, believes that block Chain is situated "away from the housing market," but believes that "eventually have to be careful because in the mortgage market retail You can have some impact. " He noted also that the smart contracts, Emissions tokens "To seek alternative funding models" as well as virtual rounds (ICO) are future opportunities for the sector.
Bitcoin, ethereum and other emerging criptomonedas are not yet suitable for for real estate transactions. The reasons are volatile, unregulated, have security problems. It should be added that can not be accepted worldwide and it seems the antithesis of an exchange of bricks and mortar.
A recent survey Property Week, reference publication in the property sector in the UK, seems to draw that is exactly what you think of real estate. 58% believe that criptomonedas are a fad and only 5% believe that other promoters sign to accept Bitcoin this year.
It may not be this year, may not be in the next five years, but at some point in the future it seems likely that digital money is widely used in the housing industry.
Do not hesitate, Inviertis You are preparing.