Construction is one of the key sectors of the economy. And it is that, due to its size, it mobilizes many branches of the productive apparatus of a country at the same time, from the extraction of the raw material that is used in construction, the manufacture of tools and the refining of raw materials, the automotive industry for the necessary vehicles in the company, transportation to mobilize materials, and of course the necessary labor for construction, among other sectors touched.
Likewise, the effects of construction are clearly felt in society, since construction is the branch that is responsible for creating all the infrastructure that makes up our modern life, including, of course, the homes where we live. All of these real estate are known as "real estate."
The state of the real estate market has an intimate relationship with the real economy, since its slowdown in general means increases in unemployment rates, business closings, and due to the enormous financing that this sector requires, also the non-payment of mortgages and credits to construction, granted by banks.
The 2008 crisis already showed us the damaging potential that the real estate market can exert on the economy, and also how important this sector is for the positioning of capital by investors. And it is that, construction is a business that requires enormous resources, and while for the construction of public works such as roads and bridges, the money can leave the State (that is, the taxpayer) through contracts and tenders, in the case For private buildings and especially homes, real estate projects require financing.
The traditional vehicle to provide this financing is traditional banks, however, the crypto revolution is changing the landscape in this business. Increasingly, we see how financing for the construction of real estate comes from financial instruments hosted on the Blockchain, such as tokens that serve as bonds on a residential complex built for rent, or tokens that represent part of the property on a complex of houses , as if they were shares of a company. What, by eliminating the intermediaries of the operation (banks), reduces transaction costs.
This is a phenomenon that is developing at the moment, becoming more and more widespread, taking the case of the issuance of tokens that work as bonds on properties in Miami for 260 million dollars, a process that although it began being carried out privately as in the The case of Miami, over time has been increasingly accepted by regulatory agencies, as is the case of Germany .
However, this is not the only role that cryptocurrencies play within the real estate market, because if a real estate project can be financed with the purchase of a token, cryptocurrencies can also be used to pay for real estate.
Thus, there are even real estate companies that have advanced the sale of real estate in currencies such as Bitcoin, such as Knox Group of Companies of the United Arab Emirates or Kuper Sotheby's International Realty of the United States, in addition to there are offers on pages such as Craigslist for the sale without intervention of real estate agents, of houses using cryptocurrencies.
Finally, perhaps the use that represents a major revolution in the real estate market, and that is at the same time the most wasted by governments and individuals, is the use of Blockchain technology for the registration of transactions and titles. proprietary.
Even so, there have been trials such as that of the company Ubiquity, which in 2016 registered a sale of a real estate thanks to the Bitcoin chain. Therefore, it shows the possibility of creating a record of property transfers that take place within a country, making it a much less cumbersome process than it is currently.
Likewise, and taking into account that ownership of real estate is diffuse to say the least in many countries, the regularization of property based on a database created in a blockchain, would allow to ensure citizens' ownership of their homes and other buildings of his possession in front of the State.
Therefore, and seeing the influence that cryptocurrencies have gained in the real estate market, and also knowing projects that are envisaged so that the integration between Blockchain and construction continues to tighten, we can affirm that the potential of cryptoactives to penetrate, even in the economic sectors less open to the use of technologies from the Fourth Industrial Revolution, it is enormous.
And it does not matter if plans such as the alliance between Bitcheke and Royal Real Estate in Chile allow the sale of real estate in cryptocurrencies, because the reality is that the integration of Blockchain and crypto assets in the construction market is a phenomenon that is here to stay and expand worldwide.