The US economy continues to look bleak as citizens and small startups nationally struggle to keep up with the government’s rules toward Covid-19 lockdowns.
According to a recent Boom Bust podcast, over 45 million Americans filed for unemployment benefits in just 13 weeks, and about 4.3 million citizens cannot pay their mortgages.
With all the lockdown orders and business shutdowns, it has put the U.S. real estate industry in jeopardy as home sales and commercial property values plunge.
However, wealthy investors are taking advantage of declining prices in the global housing market in a post-pandemic environment.
Crypto Adoption Gets a Boost in Real Estate
According to Boom-Bust co-hosts Cristie Ai and Ben Swann, Real estate listings in markets that are popular with foreign investors, including California and Florida, are progressively publicizing that they accept cryptocurrency.
The increase in crypto acceptance in the housing sector is likely driven by a desire to capture the attention of foreign investors and homegrown enthusiasts who prefer to pay with cryptocurrency.
Additionally, a convergence of massive stimulus from the U.S Federal Reserve, and a prospect of economic recovery as the economy opens up post-Covid-19 in the coming months, could trigger a higher demand in the U.S. housing market.
A spike in appetite for US properties from investors in China has also fuelled a rally for Bitcoin, which is viewed as the new digital gold that offers a relatively stable store of value and a hedge against inflation.
Other real estate brokers are sensing the possibilities of cryptocurrency, particularly in the global real estate sector.
For instance, an international real estate marketplace dubbed “Propy” operates a decentralized title registry and creates a space for buyers, sellers, and brokers to come together to execute transactions using blockchain tech.
The introduction of smart contracts in blockchain platforms now allows assets like real estate to be tokenized and be traded as cryptocurrencies like BTC and ETH.
BTC’s Borderless Properties Appeals to Investors
In the podcast, Boom Bust Cohost Cristie AI further argues that BTC, which is a borderless currency that cannot be restricted by the government, will increasingly be preferred by many investors delving into the housing industry.
Moreover, instances of fake gold in Indian bank reserves as well as in the JP Morgan vaults have led to low confidence in traditional monetary systems.
Also, the Lebanese Pound crashed by over 80% in just 10 months, causing many citizens to turn away from traditional systems like banks and SWIFT, preferring instead to store their investments in Bitcoin.
The rise in prominence of digital currencies can be highlighted by the U.S congress recent decision to look into a digital dollar for stimulus payments distribution in times of crisis such as Covid-19.
Moreover, reporter Ben Swann says that PayPal’s entry into the digital space could make cryptocurrencies like BTC more accepted by corporations and the general public.