American businesswoman Barbara Corcoran, who made fortune in real estate, recently made a statement about bitcoin being perfect for the industry’s market. She specifically pointed out that the privacy it gives to both sellers and buyers, makes it attractive to investors. However, she admitted that she will withhold investing in cryptocurrency because it still posts notable risks.
Bitcoin’s good for Real Estate Transactions
If you think that fully using bitcoins in real estate sounds impossible, Barbara Corcoran, sees it otherwise.
Corcoran said, “It makes great common sense,” in her interview with MONEY.
Moreover, she also said that the main idea would be to remove the middle man – with untraceable transactions giving buyers greater privacy. And since it’s peer-to-peer and decentralized, she sees it to be very powerful.
Bitcoin may eliminate banks in the near future
Corcoran also gave out a statement about bitcoins eliminating banks in the near future. According to her, banks might not be around 10 years from now if they don’t change their model. “I don’t see why it’s going to be needed if Bitcoin does what I believe it’s going to do,” she said.
It is uncommon to hear about bitcoin’s involvement in real estate but it is not unheard of. In Texas and Manhattan, there were already properties reportedly sold for cryptocurrency. Aside from this, Zillow currently has mentions of Bitcoin under the listings of 140 units for sale or rent.
With all of this happening now, Corcoran sees the homes sales with bitcoin to be more common in the future.
Challenges Bitcoin has to face
Despite the promise of privacy that attracts buyers and sellers, not everyone believes that cryptocurrency can thrive in the long run. Warren Buffett of Berkshire Hathaway summarized Bitcoin in four diminishing words – “probably rat poison squared.” On the other hand, Jack Bogle of Vanguard gave investors a warning saying, “Avoid the Bitcoin like the plague.”
And even though Corcoran is optimistic about crypto’s maximized use in real estate, she admits that it does face challenges. Since there’s no insurance or appraisal in a peer-to-peer crypto sale, she said that it’s uncomfortable to people. Finally, crypto’s volatility makes it even worse.