Virtual currency or cryptocurrency has taken the financial world by storm. People are buying goods and services using cryptocurrencies. However, the UAE has taken a major step and has become the first country to introduce the option to sell/buy properties there using Bitcoin and other authentic virtual currencies. Despite being a smart and stable payment method, virtual currencies are more prone to risks, therefore, cryptocurrency investors consider shifting their investment to a more reliable channel such as real estate.
Emaar is one of the first developers that encouraged buyers to use this smart payment service to invest in Dubai real estate. The developer was followed by other conglomerates including DAMAC Properties, Meraas, Dubai Properties and Select Group to name a few.
What is cryptocurrency? Let’s have a look at it and a number of special features of cryptocurrency and the steps involved in buying property in Dubai.
What is cryptocurrency?
Cryptocurrency is a digital currency – created on binary data and can be traded online for goods and services. Secured by complex algorithms and cryptography, these currencies are impossible to counterfeit or double spend. As of 2022, more than 10,000 types of digital currencies were registered around the world.
Several people find it risky to invest in cryptocurrency because, in most cases, these digital currencies are not regulated by banks or any other legal authorities and have almost no interference from governments. All data related to currency transactions and accessible funds are available on the user’s cryptocurrency wallet.
How does the digital currency system work?
The digital currencies work using blockchain technology, which is a decentralized technology spread across the computer network and is nearly impossible to erase the record. And due to its special features, a number of investors feel safer to invest in blockchain technology.
Digital currencies can be divided into coins and tokens. The coins can be mined by a computerized network while solving puzzles, and after mining these coins can be used for online transactions. Every project is provided with tokens – a virtual payment mode, to drive the network. For instance, Binance Coin (BNB) was a token on Ethereum used for trading operations, before it became a utility cryptocurrency to be used as a payment method.
Most popular cryptocurrencies
The most powerful and famous form of cryptocurrencies is Bitcoin, which is considered the most successful one so far. It has volatile pricing such as it reached to almost $65,000 but suddenly slumped back and lost half of its value soon. A few other popular digital currencies are Ethereum, Ripple, and Libra.
The value is the most important reason that makes cryptocurrencies so popular. Prices become exponentially high at times hence, they can be traded for profit. This is the reason that a lot of people have started investing in Bitcoin, which resulted in a spike in its value. Seeing the incredible increase in its value and popularity, real estate investors consider it the most popular digital currency to buy valuable assets such as real estate.
How to buy a property in Dubai using cryptocurrency?
As mentioned earlier, several developers in Dubai offer to buy properties through cryptocurrency but the cryptocurrency must be exchanged during the transaction. Hence it is more or less straightforward and convenient for investors to buy properties in Dubai using cryptocurrency exchange. Buying a property in Dubai through cryptocurrency is not yet mainstream but its ongoing integration in the real estate sector is expected to revolutionize the future of the property buying and selling process in Dubai.
The developers that offer real estate investment through other types of cryptocurrencies will sign the Sales and Purchase Agreement (SPA) based on Dirhams only – the official currency of the UAE. It means the real estate sales and purchase agreement will not be signed based on Bitcoin. Reasons can be many but mainly because the digital currencies’ value is highly volatile and cannot be included in real estate transactions, where the money changes several hands from buyer to developer.
Pros and cons of buying through cryptocurrency
Every payment mode has its own set of advantages and disadvantages; let’s have a look at a few of them:
Pros
- Faster transactions
- It does not involve banks or other intermediaries
- Cryptocurrency costs significantly less on international transfers
- It helps you to get rid of tiresome paperwork
- Avoid the hassle of buying through conventional payment modes
- Digital currency transactions are anonymous
Cons
- Cryptocurrencies are volatile
- Digital currencies are prone to fluctuations
- Fewer trade channels as not many developers accept this mode of payment yet
- If traded directly, both buyer and seller need to have cryptocurrency exchange accounts
- Transactions are irreversible
Dubai real estate is a thriving sector that has always been open for global investors. Now when
there is an opportunity to buy properties in Dubai using cryptocurrency, it has become more
attractive for cryptocurrency investors. If you are a crypto investor, who is looking to invest in
Dubai properties with cryptocurrency, get in touch with team HFRE through +971 4876 2473 or
you can also write us at info@hfre.ae to get the right guidance along with curated list of
properties there.
Frequently Asked Questions (FAQs)
Can I cash out Bitcoin in Dubai?
Yes, you can exchange Bitcoin in Dubai. There are two ways to exchange Bitcoin for cash such as; you can use a third-party exchange broker that will convert your Bitcoin to cash at a given exchange rate. Other method is peer-to-peer transactions, where you can sell your Bitcoin to someone else at a given rate.
Can I buy Bitcoin in Dubai?
Yes, you can and purchasing Bitcoin in Dubai is easier. Open a Bitcoin exchange account, withdraw money to your trading account or crypto wallet, buy Bitcoin and store Bitcoin on your e-wallet. To store your Bitcoins, make purchases, to receive gifts – you will need a crypto wallet.
Can I buy property in Dubai with Bitcoin?
Yes, you can buy a property in Dubai using Bitcoin as several developers offer to sell properties through cryptocurrencies. However, the Sales and Purchase Agreement (SPA) will be signed based on Dirhams only. For cryptocurrencies transactions, buyers and sellers will have to follow the laws.
What are a most popular cryptocurrencies?
There are more than ten thousand cryptocurrencies in the world, which can make it difficult for you to comprehend where to invest. A few popular options include:
- Bitcoin
- Ethereum
- Tether
- Solana
- Binance Coin
- Cardano
- Polygon
- Dogecoin
- XRP
- USD Coin
