Home Real Estate How to Mitigate the Risk of Cryptocurrencies in Real Estate

How to Mitigate the Risk of Cryptocurrencies in Real Estate

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Real estate owners are starting to warm to the idea of cryptocurrency as a form of payment, both from tenants and in property transactions. However, there are some concerns keeping cryptocurrencies from penetrating the mainstream market—and the inherent risk is at the top of the list.

A recent Bloomberg article called Bitcoin’s volatility in valuation evidence that the cryptocurrency market is “unsustainable, stimulus-fueled frenzy.” Andrew M. Ouvrier, a partner at Cox, Castle & Nicholson LLP, also notes that this is one of the risks of using the currency in the real estate market. “On April 17, 2021, the value of Bitcoin plunged more than 14%, before rebounding slightly, causing the values of other cryptocurrencies to suffer similar large drops,” Ouvrier tells GlobeSt.com. “Then on April 23, 2021, the value of Bitcoin and other cryptocurrencies plunged further as a result of a massive sell-off that wiped out over $200 billion of market…

Click here for full article…www.globest.com