The use of Bitcoin or other cryptocurrencies to pay mortgage amounts is quite trending these days. But why such a thing is introduced in various legal countries. The main aim is to remove the middleman between the buyer and seller of any real estate property.
More people are stepping into the mining process to own Bitcoin and use them for purchasing a house. But there are advantages and disadvantages of using digital currencies while dealing with the mortgage. If you are a beginner, you should start trading by visiting the-crypto-superstar.com/de.
In the following write-up, we will discuss various pros and cons of paying your mortgage amount with BTC or different digital currencies. You must know whether using crypto assets is beneficial for your real estate business. It is possible to transact money through your digital wallet without worrying about legal bank authorities.
Contents
Pros
Source: aarp.org
1. No Need for PCI Compliance
There is no need to worry about PCI compliance if you invest virtual currency in real estate. A customer doesn’t need to share sensitive information while processing the purchase of the property.
Information such as credit card details is essential to gather while making any payment. There are many responsibilities of a business owner. If you use digital currencies to pay mortgage money, there is no need to have PCI compliance.
2. Transparency
Bitcoin payment is a transparent process, and it is easy to make payment to a lender. There is no need to submit documents for showing and confirming your activities. No financial authority monitors and manages your accounts. You are responsible for all the transactions. If you are making a payment of a large amount, no one will question anything.
3. Blockchain Technology
Cryptocurrencies like Bitcoin use blockchain technology that helps store all the transaction details on the ledger. A user needs to have a digital wallet to make payments to the lender of any property. Your purchase is not tied to any individual. Every transaction is recorded on the ledger, and you can fetch the details whenever you want.
4. No-Risk of Fraud
Source: bankrate.com
Whenever you transfer money to any merchant, there is no need to involve any third person who can misuse your money. You can make direct transactions without affecting any person. There is no risk of fraud while moving a significant amount from one account to another. You should not have any doubt regarding the security of the transaction.
5. Fast and Safe Transactions
It is pretty secure to use any reliable exchange platform for making payments to any real estate merchant. The entire payment will move to another person’s account within a few seconds, and there will be no additional cost.
On many exchange platforms, you can get a feature of encrypting messages. Whenever you deliver any payment, it will undergo the process of encryption, and hence, the amount will be paid safely to the receiver.
Cons
1. Not Enough Anonymous
Many people think that they can make payments as an anonymous. But it is not as anonymous as you think. All the transaction details are mentioned on the ledger that any hacker can access. Undoubtedly, it is hard to enter into a secure network but not impossible. If you change the transaction address every time, you can protect your identity.
2. No Legal Authority is Involved
Source: bankrate.com
When you use cryptocurrencies for making any payment, there is no involvement of any legal authority. In case of a scam, the individual is responsible for all such activities. Whether you make any investment or trade, no financial authority monitors your activities. There will be no refund if you experience any loss while dealing with digital currencies. Therefore, you have to be very careful while making payment of the mortgage.
3. Price Fluctuation
Due to the volatile nature of the crypto industry, the price of Bitcoin or other digital currencies fluctuates. The mortgage amount or EMIs are fixed but not the BTC price. Every second, the market changes, and hence, there is a hike and drop in the price.
It is hard to deal with the fluctuation in the actual price of crypto assets. Sometimes, you have to pay more than required, and after some days, the price will double. The mortgage lender will enjoy all the benefits by getting payment in cryptocurrency.
4. Irreversible Payments
If you make any payment with cryptocurrency, you cannot get that money back in your account. All the transactions are irreversible, and hence, you cannot expect any refund. If you are using the crypto market, you must involve trustworthy people to make payments. You can ask another person to resend your money to get the payment in your wallet.
5. Security Issue with Unconfirmed Transactions
Source: law.asia
If the receiver does not confirm the transaction, there is a high-security risk. There is a possibility that you can make a transaction, but the receiver does not get it in his wallet. Sometimes, many people suffer various scams, in which they lose money even when they send to the desired person. There is no way to handle the security issue.
Final Thoughts
Many people buy property by lending money or mortgage. They use cryptocurrencies for making EMI or other payments. There are both advantages and disadvantages of using Bitcoin for a mortgage payment. You need to consider both pros and cons before paying money in digital currencies. Everyone wants to make safe payments quickly to the lender with encryption.
You can get such a feature if you use any exchange platform. But you cannot be completely anonymous while making the transaction. Make sure that you research well about cryptocurrencies and how you can make profitable transactions.
Due to the volatile nature of the crypto market, it is hard to deal with Bitcoin or digital currencies while paying mortgage amounts. You need to have enough experience dealing with virtual assets to avoid any loss in the future. Consider all the pros and cons to decide whether you should use cryptocurrencies for paying mortgage amounts to the lender.
