Bitcoin is becoming more-widely recognized as a legitimate currency. So, it begs the question: Should landlords accept Bitcoin for rent payment? We will walk you through what Bitcoin is, and give you some insight that will hopefully help you decide.
What Is Bitcoin?
Bitcoin is a digital currency, or cryptocurrency, that you can buy, sell and exchange directly, person-to-person. It is also decentralized, meaning it is not regulated by a bank or government agency. Every single transaction made with a Bitcoin is publicly recorded in a ledger, making it virtually unable to be faked or reversed. Bitcoin launched back in 2009 for under $150 each, but at the time of this article, one single Bitcoin is roughly $45,400.
There are now over 5,000 cryptocurrencies, but Bitcoin is the most widely-known. Many large businesses have begun to accept Bitcoin as payment, as well as some smaller businesses. Some well-known retailers that accept Bitcoin include Burger King, NewEgg, Overstock, AT&T and even the Dallas Mavericks and Miami Dolphins. Find a long list of retailers here.
Bitcoin In Real Estate
Developers and real estate investors are beginning to see the importance of Bitcoin and other cryptocurrencies. Many people utilize Bitcoin as an investment by buying it and then sitting on it, hoping for a huge rise in the price. But as more retailers and businesses begin accepting cryptocurrency as payment, the more mainstream it becomes. And the more mainstream it becomes, the more people will want to make their rent payments with it. Developers and landlords across the nation are beginning to accept Bitcoin as payment. But should you?
Pros of Accepting Bitcoin For Rent
Perhaps the largest pro of accepting Bitcoin for rent and maintenance payments is that it will set you apart from other developers and landlords. While accepting Bitcoin is gaining popularity, not everyone has moved to this way of thinking yet. By doing so yourself, you can market your properties to a new wave of renters. People who enjoy buying, trading, and using Bitcoin are very likely to search out businesses that accept it as payment.
Another reason to accept Bitcoin as payment is to get your hands on Bitcoin without having to put up the cash yourself. While the cryptocurrency world is highly volatile, it does have a promising outlook. If you don’t need to immediately sell the Bitcoin for cash, you can let it sit and hopefully watch it grow! It has increased an impressive 283% over the last year and 7570% over the last 5 years.
Cons of Accepting Bitcoin For Rent
As stated in the previous paragraph, Bitcoin and other cryptocurrencies are highly volatile. Just as quickly as the price rises, the price can fall. Unlike the stock market that has opening and closing times each day, cryptocurrencies are traded 24/7. This means that prices are constantly changing. You could get paid $1000 in Bitcoin at 2am, and it could drop in price before you even wake up. If you can’t keep the money “invested” in Bitcoin long enough for the price to rise again, it may not be the payment option for you.
The other big reason you may want to skip accepting Bitcoin is that it is not regulated. If there were to be a payment dispute, it may be harder to (dis)prove the payment.
So, the big takeaways: Bitcoin use is rising in real estate and is a great way to set yourself and your properties apart, but it’s highly volatile and must be considered thoroughly. What do you think? Will you accept Bitcoin or other cryptocurrencies? Let us know below!