By now you must have heard at least a little bit about cryptocurrency and bitcoin, and if not… Where have you been? Towards the end of 2017, you couldn’t go a day without hearing about cryptocurrency and bitcoin in the news. There were some high-highs and some low-lows… There was a lot of money to be made and a lot of money lost too.
One thing that is certain, bitcoin and other cryptocurrency have a firm grasp on our society. It’s become a legitimate and recognised currency by some countries, with many more to follow suit eventually. So, the big question arises… Will we ever be given mortgages in cryptocurrency?
Okay, so you may be guilty of only hearing about bitcoin – and not actually fully understanding what it is. Luckily for you, Zing has done the legwork, so you don’t have to. Bitcoin is a form of cryptocurrency, an electronic currency. It has no centralised administrator or bank to govern it. Bitcoin transactions rely on a peer-to-peer network, which is verified through network nodes. It was created back in 2009, by Satoshi Nakamoto (a pseudonym), and over the years has grown in popularity. Bitcoin is often criticised for its ever-fluctuating prices, electric consumption, illegal purchases and more (including it being considered as an economic bubble). Easy, right? (no). We’re not too sure on it as well, so don’t worry if you’re not…
Back in October of 2017, when there was a boom in cryptocurrency (bitcoin specifically), something happened for the first time. A property was put on the market… (yes, this isn’t new but give us a sec to get to it). The sale of the property was solely in exchange for bitcoin – they didn’t want to faff about with cash, they wanted cryptocurrency. Then, 2 months later in December, the sale of the first two properties with cryptocurrency was recorded. This was such a significant event that the land registry even logged it in their records.
Whilst at this moment in time, the future of cryptocurrency in the UK is uncertain, one thing is sure. With the first house sale transaction through bitcoin recorded, could bitcoin mortgages be next? Granting a mortgage through bitcoin alone may become the future… although, we’re not quite there yet.
The Bank of England’s governor, Mark Carney, reckons that cryptocurrencies should be regulated, but not banned entirely. The landscape of digital currency is a confusing one to navigate, as the uncertainty of it is ever apparent. There’s a lucky few who have profited from the investment in bitcoin, and some who have lost a lot.
However, the more people investing in cryptocurrency means it cannot be ignored as a viable financing option for long. It’s not a question of if there will be cryptocurrency mortgages, it’s when…