How is Bitcoin affecting the new housing market in Argentina in 2022?
How does Bitcoin affect the Argentinian real estate market?
Bitcoin’s rapid growth and popularity has led more and more people to become interested in cryptocurrency. However, exchange houses usually charge a 3% commission per transaction, which the buyer would pay.
The total fees for buying bitcoins on an exchange would reach 6%. In this article, you will know a lot about bitcoin that affects the real estate sector in Argentina.
In Argentina, the most popular exchange house for bitcoiners to buy bitcoins is Bitex. The and Bahisexchange.com. In addition, purchases can be made by local bank transfer or through payment systems such as RapiPago, Pago Fácil and Pagofacil. To visit wirtschaftszeit.at to get more information.
5 Ways Bitcoin Affects Argentina’s Real Estate Market
Buying a home is generally considered to be one of the most important purchases a person will make in their lifetime. It usually represents a significant investment for families and is a way to create or increase social status.
In Argentina, where corruption and inflation still affect some people, property buyers include this specific category in their property purchase planning. So let’s see how bitcoin can affect it.
1) The legalization of Bitcoin in Argentina
In December 2014, the country’s government legalized Bitcoin and other virtual currencies as a form of payment. This announcement was quite crucial for individuals and entrepreneurs since, in this way, they could use cryptocurrencies legally.
Moreover, such measurements make it possible to know that a country is open to an innovative and decentralized currency.
2) Cryptocurrency and cross-border payments
Buying a property in another country requires a money transfer that takes some time. This problem can be solved by using cryptocurrencies to move their funds faster, cheaper, and without causing too much headache.
Thanks to the efficiency of Bitcoin compared to traditional currencies, real estate agencies in foreign countries can benefit from it.
3) Reduce industry corruption
The international real estate market also has its share of corruption problems, which sometimes get in trouble for people looking for apartments or houses in another country.
However, by using cryptocurrencies like Bitcoin to make payments, buyers and sellers avoid these issues and make the process safe and transparent.
4) Bitcoin transactions can be tax free!
Compared to traditional currencies, Bitcoin is subject to different taxation because it represents a decentralized currency that does not need intermediaries or third parties to function properly.
5) The first US-only bitcoin house sale
In February 2015, Austin Craig, his wife Beccy and their three children started a project called “Life on Bitcoin”. They decided to spend 100 days living without traditional money.
Their main focus was to discuss what a family can do with virtual money. They bought a house in Arizona and paid for it entirely in bitcoins during their experiment.
According to the current bitcoin exchange rate, the house near Phoenix is valued at 120 BTC, which equates to around $400,000. Despite this, some people criticized buying real estate and said it was not a good idea to use cryptocurrency.
However, you can already see how bitcoin is creating a new industry and different payment methods.
3 Negatives of Bitcoin Affecting Argentina’s Real Estate Sector
1) Bitcoin volatility
Unlike fiat currencies, bitcoins are not backed by governments or central banks, which means they do not have a fixed rate. This aspect can be very annoying, and it is one of the reasons why some people choose not to use bitcoins.
2) Bitcoin is not available everywhere
This is just another bitcoin problem, with its price volatility. The fact that some people can’t access certain websites or stores because they don’t have bitcoins is quite frustrating, and it’s one of the reasons why cryptocurrencies aren’t used so often by people. people all over the world.
3) Bitcoin is not a currency but an investment
Another problem with using bitcoins is that most people don’t use them as currencies or payment methods.
Instead, some people view digital coins as investments and go out of their way to buy them, convert them to other currencies, and wait for their price to rise before reselling them.
Even though there are negatives to using bitcoins, it is a cryptocurrency with a bright future ahead of it. For example, you can see how properties and houses for sale in foreign countries are advertised as bitcoin-friendly in the real estate market.
This means that those who wish to use bitcoins for different purposes will now have more options.