A penthouse at Miami Beach, Florida, sets a record sale facilitated by a cryptocurrency transaction of $22.5 million in the real estate industry.
Arte Penthouse Sale Attracts Cryptocurrency into the Real Estate Sector
A 5,067 square-foot penthouse in the United States was sold within a week, once the sellers announced that they accept cryptocurrency payment. Apart from the gym, the Arte Sursfide penthouse boasted of a four-bedroom house with indoor and outdoor swimming pools. The penthouse is on the ninth floor of the Arte building. Cryptocurrency transactions are transforming things in the real estate industry.
The deal of the penthouse at Arte is a standing example of the need for cryptocurrency transactions among those invested in the crypto market. Alex Sapir and Giovanni Fasciano are the Arte developers who announced that they would accept crypto payment for the building. The deal was clinched almost immediately. Crypto holders are willing to move their crypto wealth into the traditional asset class. Such real estate deals will bring cryptocurrency transactions into the mainstream. It will make investing in cryptocurrency a profitable opportunity.
As cryptocurrency transactions increase, it will encourage more cryptocurrencies to enter the mainstream and attract more crypto investors.
However, the sale made on May 27 does not give details about the buyer. It does not reveal the specific cryptocurrency on which the Arte Surfside deal was closed. It has taken just a week for the transaction to take place between the buyer and seller.
Top Holders with Cryptocurrency Holdings
Top cryptocurrency holders are looking for opportunities to bring crypto holdings into real-world transactions, says Sapir. There is growing interest in cryptocurrency transactions among financial institutions and brokerages. The acceptance of cryptocurrencies as payment sparked a renewed interest among crypto users. Many big players are investing in cryptocurrencies, waiting for opportunities to transform into assets.
Another developer Caruso of Los Angeles has announced that rental payments in cryptocurrencies would be accepted for their retail and commercial properties. Top cryptocurrency players are looking for such opportunities in real estate.
The US Internal Revenue Service (IRS) has asked lawmakers to provide proper regulations for reporting on crypto transfers. All transfers above $10,000 go unreported says, IRS Chief Charles Rettig.
Large deals have been closed through crypto payments, even during 2014. But of late, brokers are turning to new ways to buy homes, such as using cryptocurrency as payments. The usage of bitcoin and other cryptocurrencies is on the surge in recent times. Investors are willing to buy cryptocurrencies to reap high profits.
Cryptocurrency users are willing to invest in real estate as they are provided with privacy while buying property. The costs involved in real estate transactions are lower while transacting in crypto coins. Such investments make international transactions easier. But on the flip side, many hackers may cheat on such transactions using digital assets. High volatility is another risk that is associated with cryptocurrency prices.
The Rising Interest in the Crypto Market
Cryptocurrency prices saw a meteoric rise in 2021. Bitcoin and other altcoins touched record high levels this year. The Crypto price of Bitcoin went up to an all-time high of $65,000 in April. Ethereum touched an all-time high of more than $4,000 in May 2021. Digital currencies have skyrocketed in crypto market capital and value. The large swings in top cryptocurrency prices attract new investors, as they provide large profits beyond the scope of any other investment.
Bitcoin has a market capitalization of more than $610.6 billion. Ethereum is the second-largest cryptocurrency that has a market capitalization of around $290 billion. Bitcoin and Ethereum are considered safe currencies in the digital currency market. Tether, Binance Coin, Cardano, Dogecoin, XRP, USD Coin, and Polkadot are other altcoins that have attracted cryptocurrency investment.
Earlier, only high net worth individuals were investing in the crypto market. Bitcoin, the world’s largest bitcoin in the crypto market cap was the favourite of crypto investors and was called the digital gold.
But of late, even institutions have adopted the crypto world. New crypto start-ups are blooming and introduce new coins. Top cryptocurrencies like bitcoin, Ethereum, Litecoin, and Ripple XRP are some currencies that attract new investors.
Various large institutions like PayPal and Visa have accepted the crypto payment services. It has increased the number of cryptocurrency users who are willing to buy cryptocurrencies.
Coinbase got listed on the US stock exchange, Nasdaq, on April 14. Aave and Maker DAO are DeFi platforms that make use of the lending and borrowing protocols.
The digital currency market has high volatility. Cryptocurrency investors, however, find it a source of rich profits. Instant transactions, safety, and flexibility are some of its chief features.
However, crypto investors should understand the volatile market conditions. Regulation is an important factor that affects crypto prices. Lack of regulations has brought the government against the crypto market. China and South Korea are some currencies that brought a crackdown on cryptocurrency businesses. Though cryptocurrency transactions are traceable and transparent, it provides anonymity to its holders. You can hold a crypto address, but it will reveal nothing about your identity.