Cryptocurrency investors are prevalent in terms of real estate this year as the crypto market continues expanding. Recently, NYDIG (New York Digital Investment Group carried out a survey that revealed that a total of forty-six million Americans hold Bitcoin. This equates to 22 percent of the entirety of its adults. Although enthusiastic, some crypto investors have stated concerns with regard to the volatility, custody, and security of digital assets.
For instance, Nickel Digital Asset Management, a legalized investment management firm based in Europe, surveyed wealth managers and investment firms based in the US as well as Europe who, as a group, have 275 billion USD in AUM (or assets under management). Results indicate that 76 percent of these individuals and business entities are apprehensive regarding the safety of their virtual assets. The same number of individuals showed concern regarding liquidity and the size of the market. The remaining 71 percent view the regulatory atmosphere for the cryptocurrency market as a serious issue.
With this at the forefront, numerous cryptocurrency holders have begun investing Bitcoin as well as other digital currencies into comparatively less precarious assets like real estate. Magnum Real Estate Group managing partner Ben Shaoul informed Cointelegraph that the firm has lately been getting more calls to sell real estate to crypto owners. Magnum started conducting cryptocurrency for real estate trades approximately 3 years ago, according to Shaoul.
Jet Real Estate COO and Magnum’s special consultant Eric Hedvat went on to tell Cointelegraph that provided the fast-moving expansion of today’s cryptocurrency market, Bitcoin payments for real estate hold more importance than before because it provides cryptocurrency investors with a chance to mature with cash flow. According to Hedvat, the crypto market has established an extensive network of novel wealth-seeking conventional assets in order to invest in real estate. He also added that there are not many commercial properties put up for sale that can be bought with Bitcoin.
To be more specific, Shaoul remarked that the revenue generated through the retail apartment block that Magnum had sold for 15.3 million USD in the form of Bitcoin in 2019 happens to be entirely in credit, with M&T bank, which is worth billions, being a tenant in the building since it was first built. Shaoul further added that individuals with new wealth via crypto do not have a way to create or monetize a steady stream of income.