Should Real Estate Wholesalers Accept Bitcoin?
Bitcoin is hot. So should investors wholesaling properties be scrambling to accept bitcoins or is it another major pitfall to avoid?
The buzz about bitcoins seems to only be growing, just as the virtual currency is rocketing in value. So what are the real pros and cons of dealing in this digital currency for those wholesaling houses? Is it a must have or must avoid?
There are actually many benefits of incorporating bitcoins into business for those wholesaling properties.
· Making it easier for more individuals to buy from and invest with you
· Cashing in on the dramatic increase in bitcoin price
· Increased press, brand visibility and viral spread
· Attention from tech savvy investors and buyers
Of course many wholesaling CEOs are just discovering what bitcoin is all about. Unfortunately, much of this is in the form of negative media surrounding the recent shut down of Silk Road, arrest of Charlie Shrem and mega-million dollar bitcoin seizure.
On the bright side, those that have followed this news will be aware that this all had little to do with using bitcoins, and everything to do with the illegal activities being bought and sold. In fact, the fact that the government is reportedly selling the digital coins it swiped makes bitcoin legitimate.
It’s becoming very easy to accept bitcoin, and more and more businesses in various industries are adopting it. Right now there is an amazing window of opportunity for riding on the coattails of the currency and press by taking it. For many, it could be their best marketing move of the year, and really help to launch their businesses to the next level. Of course this won’t be a door or opportunity open for long. We are talking weeks and months before the novelty wears off and everyone is doing it.
There are some critical considerations to keep in mind though. Many may prefer spending and accepting bitcoins for privacy. However, while Bitcoin Magazine reports 90% of those in existence are being hoarded, there is the potential for big fluctuations.
Over the last year this has worked in the favor of bitcoin owners and miners. Coins that were worth just a few, or few hundred dollars a year ago are currently trading for hundreds and tens of thousands of dollars. Due to the limited number of people holding them there is a lot of control in a few hands.
So recognize the value of using them in wholesaling properties, but think about the consequences of holding too much in virtual money.