Yitanzi, a Tokyo-based real estate startup firm, revealed its plan to sell a commercial complex for 547 bitcoin, worth approximately $6 million. The startup claims it to be the first multi-story structure to accept complete payment via bitcoin.
Japan has been an early adopter and proponent of cryptocurrencies. In an interview with MK, a Seoul-based media group, the startup asserted that its retailing several commercial complexes as well as residential apartments using cryptocurrencies.
Bitcoin: soon to be a Currency for Real Estate?
According to Yokozawa Yuske, CTO of Yitanzi, the recent boom in real estate market is due to the gains from cryptocurrency investments. Crypto investors are targeting the real estate market to spend the digital currency trading profits.
Yuske also pointed the growing demand in the market where property owners are proffering multi-million dollar properties in exchange for bitcoin. As for now, the most accepted digital currency in the real estate market is bitcoin.
Bitcoin fever has hit not only Japan but also the United States. According to The Japan Times, digital currencies have become a developing payment method in the U.S. real estate market. A per Redfin, a real estate firm, over 75 properties were for sale that accepts bitcoins as payment mainly in the state of Florida and California.
The reason the Japanese property owners accept bitcoin is due to cheaper fees, compared to banks or third parties, and hassle-free settlement. Generally, buying properties via third parties or banks prompts higher fees and a lot of paperwork.
Bitcoin transaction fees could be expensive especially when the amount is small, compared to other cryptocurrencies such as ripple. However, when the deal is in millions, it is the safest and most accepted payment channel, especially among realtors.
Japanese Government’s stance helps Bitcoin enter Mainstream
In September 2017, a Dubai real estate project, worth $356 million, began to accept bitcoin for payments. According to the developers, Michelle Mone and Doug Barrowman, each of the apartments would cost about 30 bitcoins.
“I’ve been invested in the crypto world for the last couple of years really, and it’s a sector I’ve watched grow and emerge. So I see it coming to that stage where the early adopters are giving way to a more mainstream application of cryptocurrency, and therefore it’s a logical extension to take land and buildings and effectively offer people the opportunity to pay in cryptocurrency or bitcoin rather than just fiat currency,” said Barrowman.
In 2017, the Japanese government legalized bitcoin and also regulate the crypto exchange market. Moreover, several other businesses are accepting bitcoins such as Peach, the country’s budget airline that has been accepting bitcoin for a few months now. Also, viewing at the growing demand of cryptocurrencies in the country, MUFG, the largest lender in Japan, indicated its plan to initiate a cryptocurrency exchange.
Also, Nomura analysts, the rise in bitcoin value could also increase the country’s rate of economic growth (or GDP) by 0.3 percent reflecting directly on the Japanese economy.
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