Finance and Crypto

Know the Potential Implications of Buying Real Property with BTCs

A dilemma faced by UK bitcoin owners looking to buy a home with their bitcoin was that they couldn’t find a seller who accepts digital coins as direct payment; not unless the seller is also a bitcoin holder who knows the ins and outs of cryptocurrency finance.

The only advantage to buying a property using bitcoins as mode of payment is that the transaction can be closed in a matter of minutes. After all, cryptocurrencies works in a decentralized financial system where banks, including the central bank are not involved in the flow and regulation of crypto transactions.

Volatility of Bitcoins Present Potential Problems

Yet while some sellers will consider selling their property to a bitcoin owner, it’s likely that they will still require the buyer to convert his bitcoin (BTC) into the fiat currency recognized by the seller’s country. While the price of BTCs fluctuate, to change in value from one day to the next, most sellers are wary of ending up underpaid, That is, if the value of the bitcoins received as payment, drops at an amount that equates to an amount at less than the value of the property sold,

On the other hand, if a seller accepts BTC as payment and that by some stroke of luck, the digital coins increase in value, then the seller gains additionally from the real estate transaction. The buyer cannot ask the seller for the difference between the purchase price of the real estate and the current value of the BTCs.

That scenario however is not likely, since most BTC owners will not part with their money if they are receiving cryptocurrency signals that the prices will go up. It’s a different story if there are signals indicating a potential downturn. Such events could prompt a BTC owner to liquidate their holdings; or to invest the digital money into an asset like real property, as it can provide protection against inflation.

The Disadvantages of Buying a Real Property with Bitcoin

The sale of bitcoins is regarded by tax authorities in the UK as a sale of asset, subject to Capital Gains Tax. If a bitcoin was used as direct payment for a property, the buyer is placed in a position where he has to pay the commensurate amount of Capital Gains Tax for exchanging his BTC asset with a real property.

 

This will not escape notice from tax authorities since a Deed of Sale has to be executed as required in the process of transferring title of ownership over a purchased property. While the payment of Capital Gains Tax in the sale of the property is the responsibility of the seller, the buyer also has to pay Capital Gains Tax for the asset exchange.

Another disadvantage is if he buys a real property with an unscrupulous seller who requires, or readily agrees to accept bitcoin as payment. There’s no reversing the transaction in the blockchain ledger. In the event that legal problems link the property to a lawsuit. While the buyer can assert his ownership in court cannot demand for the reversal of the real estate deal. Moreover, there is no guarantee that the court will not award the property to the claimant.

If you’re looking to buy a house in Borehamwood, as it is currently touted as one of the best places to live in, in the UK, it would best to consult with Borehamwood Estate Agents not only for valuations but also about the possibility of bing from a seller who accepts BTCs. 3

Why Investing in Bitcoin is Not as Easy as Many are Inclined to Think

Many made a killing on investing in bitcoin after the prices of the digital asset started doubling in mid 2020, and reached an all time high of $63K in early 2021. Although the prices of BTC started slipping a few months thereafter, the price has been picking up in recent weeks and is now nearing the S63K all-time high price index. People who have saved some extra money during the pandemic lockdown are now contemplating on buying bitcoin instead of letting their extra money parked in a low-yielding savings deposit.

 

While this may seem like a good idea for those looking to invest their money in high yield investments, have awarenes that putting your money on cryptocurrencies if for the purpose of investing is a form of speculative investment involving currency that is not backed by any form of physical asset of value like gold. Neither is the price of bitcoin linked to a specific fiat money like the U.S. dollar.

What Makes Speculative Investments Risky?

Speculative investments, while high yielding involves a high level of risk that is best only for people with high tolerance for risks. This means that even if the speculated investment does not turn out as expected, or at worst results in substantial losses, the investor still has sufficient financial fallback to rely on,

Purchasers of a speculative investment like bitcoin has to focus closely on price fluctuations, since high yields can be attained by taking advantage of the market value changes. The changes however is associated with the supply and demand of the commodity. An increased demand with relatively low supply can cause the market value to rise. Conversely, if the supply exceeds the demand, there’s a ;ile;y possibility for the market value of the commodity to frop/

The supply of bitcoin can be affected by the willingness of bitcoin holders to sell their digital coin at the current market price and by the speed by which miners can earn bitcoins from successfully solving the equations of blockchain transactions. How bitcoin miners earn BTCs that will add to the available supply of the cryptocurrency in the market is another story that one needs to comprehend before deciding on any type of cryptocurrency speculative investment.

While the most important feature of digital coins like bitcoin is its capability to work quickly amidst a digital environment without having to use the services of traditional financial institutions, there is more to understand about bitcoins before one makes a final decision to place hard-earned money, even on the fastest moving cryptocurrency like bitcoin.

Bitcoins and other digital coins work in an unregulated environment, in which there is no government agency in charge of overseeing operators of crypto-exchange sites and investment platforms. bitcoins unregulated by governments or central banks.

Why Investing on Mutual Funds is a Better Option

If you’re looking to invest money you have saved for a future use, your best option is to invest it in a mutual fund managed by reputable asset managers. Here, your money will become part of a pooled fund invested on a portfolio of holdings in the form of securities, bonds or some form of short-term investments with guaranteed returns,

There are mutual fund managers who offer mutual fund work with their clients in customizing their investment. Options presented are in accordance with an individual;s tolerance for risk and the time horizon or the expected period the saved money will be used,

The Corona Virus Affects The World But Not Bitcoin

Only last October, China’s President Xi Jinping made a short-term price increase of 40 percent with his positive comments on Bitcoin. In the past, however, disclosed hacks from crypto exchanges or government bans on digital currencies have caused prices to plummet. Therefore, the assumption that the negative messages about the coronavirus also have an impact on the course would only be logical.

Expert Explains Bitcoin Surge Amid Coronavirus Outbreak

However, neither the official closure of the mining pool BTC.top, nor the cancellation of some crypto conferences, could actually have a negative impact on Bitcoin and most altcoins. With the cancellation of the HongKong Blockchain Week, the Token2049 conference and the niTROn2020, several important events were canceled at very short notice. However, most cyber currencies have skyrocketed since the beginning of the year. Bitcoin, in particular, is returning to values ​​above the $ 10,000 mark after a long losing streak.

It is therefore clear that the effects of the pathogen affect the currencies rather than the people themselves. So far, however, the effects of the disease have not yet been so fatal that the reports could have a serious impact on cryptocurrencies.