In a recent interview with Money, Shark Tank investor Barbara Corcoran spoke extremely highly of bitcoin's use in the real estate industry. She thinks buying a house with bitcoins might not only be a viable option but a common phenomenon in the foreseeable future. The TV show star, who made her fortunes as a real estate agent in New York, said “I’m being very optimistic because, as a long-term play, it’s perfectly suited for real estate transactions.”
Bitcoin’s involvement in real estate is uncommon, but not unheard of. Many properties have reportedly been sold for cryptocurrency from Texas to Manhattan, and there are currently upward of 140 units for sale or rent on Zillow that mention Bitcoin in their listings. Corcoran, who sold the New York City real estate agency she founded for $66 million in 2001, says Bitcoin home sales will only become more common in the future.
For one thing, in a peer-to-peer crypto-sale there’s no insurance or appraisal, she says, which makes people uncomfortable. And then there’s the cryptocurrency’s notorious volatility.
“I could agree, this week, that that unit is worth $3 million,” Corcoran says. “If, by next Thursday, the bottom falls out and [the Bitcoin] is worth $2 million, that $3 million agreement is useless.”
However, Corcoran misses the fact that for time being, when cryptocurrencies are volatile, the valuation can be done in USD and just the payment can be done in cryptos.
The Shark Tank star, who made her fortunes as a real estate agent in New York even mentioned that Bitcoin has the potential to replace banks. She forecasted that in a decade the banks will be gone if there is no modification in their operations.
“I really don’t expect banks to be around 10 years from now unless they change their model,” she noted. “I don’t see why it’s going to be needed if Bitcoin does what I believe it’s going to do.”
[Image Credit: University of Nevada, Las Vegas]