Written by Jacob Asparian, June 14th 2023

Bitcoin for Realtors

Bitcoin has been around for well over a decade now, and by this point you may have heard the statement “Bitcoin is digital gold”. In this article I am going to take it one step further though -

Bitcoin is digital real estate.

While this statement usually draws skeptical responses from actual realtors, I want you to stay with me for the next few paragraphs and let me explain.

Firstly, let’s talk about what Bitcoin does not do. Bitcoin does not offer you shelter from the elements. One of Mazlow’s most basic needs is shelter - which is why real estate is so important. Everyone needs a roof over their heads. You cant sleep under your Bitcoin. Additionally, Bitcoin does not offer cash flow like specific real estate investments.

But Real Estate is so much more than those attributes, and as realtors, there are reasons in which we believe in the industry and dedicate so much of our lives to it. Bitcoin draws many parallels to these attributes of real estate, that no other asset on Earth can claim.

Limited Supply: Just like physical real estate, Bitcoin has a limited supply. There will only ever be 21 million bitcoins in existence, just like how there is only so much land to go around. Making both real estate and Bitcoin a scarce asset. This limited supply creates a sense of value and exclusivity, similar to prime real estate locations. The Bitcoin Blockchain is the most secure and well known blockchain in the world. It is the Manhattan of Cyber space. Demand will continue to increase as more and more people around the world start using this technology and “moving” their value to the Blockchain.

Digital Ownership: Bitcoin ownership is represented by digital tokens recorded on a decentralized blockchain network. These tokens can be considered digital assets or properties that individuals can own and control. This digital ownership parallels the concept of owning physical properties in the real estate world since only the holder of the keys can move the particular property

Inflation hedge: Hard assets like real estate have been viewed as a great vehicle to protect ourselves against inflation. Bitcoin is also a very suitable option for users who are trying to protect their hard earned savings from being diluted with inflationary monetary policy around the world.

Investment Potential: Bitcoin, like real estate, has the potential for investment appreciation. Over time, the value of Bitcoin has shown significant growth, attracting investors seeking potential returns. Similar to how real estate investments can appreciate based on market conditions and demand, Bitcoin's value can fluctuate based on market dynamics.

Store of Value: Real estate is often seen as a store of value, providing a long-term investment that can hedge against inflation and preserve wealth. Bitcoin also shares this characteristic, as many people view it as a digital store of value due to its decentralized nature and absolute scarcity.

Diversification: Real estate is often included in investment portfolios to diversify risk and provide an alternative asset class. Similarly, Bitcoin can serve as a diversification tool within investment portfolios. Adding Bitcoin to a portfolio of traditional assets like stocks and bonds can potentially reduce correlation and enhance diversification benefits.

Global Accessibility: Bitcoin's digital nature allows for global accessibility and ease of transfer. While real estate investments can be localized and limited by physical boundaries, Bitcoin transcends geographical limitations, making it accessible to anyone in the world with an internet connection.

And Beyond: Bitcoin’s unique fungibility also sets it apart from real estate. On Bitcoin, there are no zoning laws or high-demand plots of land. Each and every Bitcoin is identical to every other Bitcoin. This makes it a comparatively better asset to associate value to, as any Bid on Bitcoin around the world is in essence a bid on your Bitcoin as well. Due to this fungibility, there is a bid on Bitcoin 24/7, and the markets never close. Bitcoin can be sold in a fraction of a second for market value due to how liquid it is - which is a feat that real estate is not able to accomplish.

As realtors, you understand the importance of always being on the cutting edge of the industry. Whether you are old enough to remember the initial push onto the internet and adopting an online presence, or more recently trying to figure out how to best leverage ChatGPT - there is an inherent first mover advantage to adopting technologies.

Bitcoin is set to revolutionize transparency and proof of funds, or making a real-time 24/7 auditable trust account. Bitcoin makes international, cross-border payments easier than ever. Comparatively, certified deposit cheques are taking 5 business days to clear. This is unacceptable in 2023 where the internet has improved efficiency everywhere, except for the banking system . Instantaneous and irreversible settlements of funds.

If you are a Canadian real estate agent or investor who would like to learn more about Bitcoin, 1Bitcoin.ca offers free consultations and the opportunity to open corporate accounts for PRECS and holding companies. Reach out to us today at help@1bitcoin.ca for more information.