Real estate agents attending a recent Arcadia Association of REALTORS event in California, each received one dollar’s worth of bitcoin during a talk highlighting this new technology. The trade organization focuses on subjects relevant to real estate agents in the San Gabriel Valley and this was the first event held which has looked at the potential uses of bitcoin in the real estate industry.
The talk was given by meson.re, a company that enables Chinese investors send and receive money for real estate purchases in Canada and the US using bitcoin technology. Apparently the talk focused on how bitcoin could be used in international real estate relating to California, particularly when it comes to helping Chinese investors purchase US real estate. In the future there is the potential for bitcoin to play an increasingly large part in international transactions. The article in coindesk.com highlighted the fact that Chinese investors are more likely to immediately realize the benefits of using new technology to purchase US real estate. How To Referral and knowing everything around bitcoin is therefore necessary.
In 2013, Chinese investors bought $22 billion worth of real estate, compared to $10 billion in 2011. This accounted for 25% of all housing transactions by foreign buyers and such deals often involved complicated processes to transfer the money. Many of these deals could be simplified with the use of bitcoin.
The aim of this recent event in California was to educate members on how bitcoin is being used in the real estate industry so that in the future members have all the tools they need should a client ask for further information. The reason why bitcoin offers such huge opportunities for Chinese investors is due to the current Chinese law that limits wire transfers to $50,000 per person per year, as this restriction does not apply to bitcoin.
Although most attending the event were receptive to this message, attendees did ask some tough questions, one of which is whether bitcoin could potentially violate the spirit of this Chinese law and would therefore be a one-off option for Chinese buyers. While being a legitimate concern, bitcoin is already being used under similar circumstances in Greece and Argentina as well as other economies that are currently struggling.
There is the potential for bitcoin to offer a viable solution, particularly as the Chinese markets have been quite volatile just recently. However this was just a two-hour presentation and it was a lot of information to pack in to this timeframe, particularly as many people do not understand bitcoin. At the moment people can buy as much bitcoin as they want and this can be converted into dollars and used to purchase the property.