In the recent days, the biggest New York real estate agencies as well as website RentHop had announced the implementation of Bitcoin currency and that they will accept it as one of the payment option. Bond New York, one the real estate agencies in New York, stated their aim is to make the market and procedure of buying property as much customer friendly as possible (Gould-Keil, 2014, n.p.). On the other hand, due to Bitcoin volatility (see Figure 1), there are a number of companies that would “prefer the American dollar” stated Pam Liebman, who is the CEO of another real estate agency Corcoran Group (Gould-Keil, 2014, n.p.).
Definitely, implementation of Bitcoin currency will result on real estate market. Firstly, how the companies will manage Bitcoin rate fluctuation? It is well-know that this currency could drop down from $1200 to $600 per 1 bitcoin within just 48 hours (Gould-Keil, 2014, n.p.). Secondly, how the realty prices will be stated? Should there be an electronic converter everywhere, which would update every hour? Thirdly, is there any guarantees that Bitcoin will not lose its popularity in the nearest future?
Being a Financial Manager and Research Leader in MyRealtyUSA, I am very interested in how such an implementation would result the market and should our company follow the trend and start to accept Bitcoin as well. Further report will show the main advantages and disadvantages of the above mentioned currency and how Bond New York manages to deal with it. For now, stable currency, such as US dollar or Great Britain pound, causes much more trust rather than internet ones and it is unlikely that Bitcoin or any other internet currency will someday replace traditional ones (Gould-Keil, 2014, n.p.). Thus, the main point of this report would be: is there a very valuable reason devote a lot of time, efforts and funds to implement such system into our company and will this innovation bring the expected result, which is, obviously, maximizing the profit.
References
Gould-Keil, J. (2014). Real estate broker: ‘We accept bitcoin’. The New York Post. Retrieved from http://nypost.com/2014/01/04/real-estate-broker-we-accept-bitcoin/
Btcvol.info,. (2015). The Bitcoin Volatility Index. Retrieved 11 July 2015, from https://btcvol.info/
