On 4th September, it was revealed that Bitcoin [BTC] had entered into the realm of real estate, with Ruden Holdings, a Japanese real estate company announcing its trials with its “Bitcoin-based virtual currency real estate settlement platform.”
With the arrival of the cryptocurrency into a field as mainstream as real estate, proponents of Bitcoin have revealed that it is a step in the right direction. Ruden Holdings has also stated that the entire experiment of linking Bitcoin with real estate was done in collaboration with Blockchain Global Limited, a blockchain company aimed to make transactions more secure and transparent.
The experiment also involved Bitflyer, a famous cryptocurrency exchange and Japan’s largest cryptocurrency exchange by volume. The reports released by Ruden Holdings also showed that some parts of the framework used the NEM test network. NEM has been doing the rounds more and more often right now, especially with the media push it received after its tie-up with Petro, a cryptocurrency that is being linked to the Venezuelan Bolivar.
The report released by the company gave a breakdown of the processes that users need to follow to conduct transactions. Ruden has pointed out that the buyer can choose a property from the listing on the website and transfer the required amount in Bitcoin to the Ruden’s Virtual currency account.
They have stated that as soon as the transfer is complete, the company will convert the Bitcoin to Japanese Yen and complete the transaction. Officials from the company said:
“As soon as Ruden (system) confirms the remittance of the virtual currency, we will execute the contract and [convert the] virtual currency to Japanese yen. In addition, a notarized sale [and] purchase agreement is promptly shared with [the] buyer and seller.”
The reports have also shown that the new method has a lot of advantages over the traditional way of conducting transactions related to real estate. One of the major advantages stated by the company is how the usage of Bitcoin and smart contracts has drastically reduced the time required in completing deals. This ranges from the first click on the property listing to the final transfer of the Yen. Ruden went on to say that:
“It is not only to improve the efficiency of operations, but also to prevent unforeseen circumstances.”
The company has also stated that the model which was only applied in Japan, will be launching in cryptocurrency friendly countries soon.
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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