Find Real Estate Agents and Homes for Sale


Real Estate News --> Vermont News

Real estate execs dismiss bitcoin frenzy


A recent collaboration between a global property marketplace and the city of South Burlington, Vermont, could be the first in a growing trend of real estate transactions being recorded on the blockchain, but don’t expect the trend to hit the West ...


Archived Story

Calendar Feb 20 StCecilia Music Center Reading on a Higher Note Feb 20 GROW Small Business GPS: Marketing Strategies Part 3 Feb 21 GROW Start Smart Feb 22 GROW Insurance for Your Small Business Mar 01 GROW Intro to GROW (session 1) Mar 01 GROW Intro to GROW (session 2) More Events Submit An Event Multimedia Photos Top Women Owned Businesses 2017 Grand Rapids Business Journal honors the top female entrepreneurs of West Michigan at an inspiring biennial luncheon. More Photos More Multimedia This Week's Issue Does XFL have a future in Grand Rapids? Open Systems Technologies launches digital consulting division Subscribe Now! Home » Real estate execs dismiss bitcoin frenzy Real Estate, Small Business & Startups, and Technology Real estate execs dismiss bitcoin frenzy West Michigan leaders express concern over longevity, volatility of cryptocurrencies. February 16, 2018 | By Ehren Wynder | TAGS Colliers International / Jeff Hainer / NAI Wisinski / Natalia Karayaneva / Propy / Scott Nurski var addthis_share = addthis_share || {} addthis_share = { passthrough : { twitter: { via: "grbj", text: "Real estate execs dismiss bitcoin frenzy" } } } Share $(function(){ addthis.init(); }); Text Size: A A Related Articles Real estate firm buys commercial property for $5.5M Tech company buys building Strong real estate market expected across all sectors Related Events 15th Annual ICSC West Michigan P3 Retail Program A recent collaboration between a global property marketplace and the city of South Burlington, Vermont, could be the first in a growing trend of real estate transactions being recorded on the blockchain, but don’t expect the trend to hit the West Michigan market anytime soon. Local professionals raised plenty of questions about the validity of cryptocurrency in the real estate market. A blockchain is a digital ledger that keeps track of transactions made in bitcoin or other cryptocurrencies. Propy, a blockchain startup headquartered in Palo Alto, California, announced early in January a successful pilot project with South Burlington to record real estate transactions on the blockchain. The Vermont state and local governments agreed to pilot the projectMichael Schirling, secretary of the Vermont Agency of Commerce and Community Development, said the project was “emblematic” of the state’s drive for new and innovative technology in business. “We are fortunate to have a cutting-edge statutory framework that enables the use of blockchain technology, and we will continue to work with the legislature to ensure Vermont remains at the forefront of these innovations,” he said. But a future where properties are bought and sold with cryptocurrencies still may be far off, based on reactions in West MichiganJeff Hainer, senior research analyst for Colliers International West Michigan, said the commercial real estate industry, as a whole, is “notoriously” slow to adopt new technology and shift business practices. “Much of the industry still operates the way it did 40 years ago,” he said. Vermont officials are eager to change that timeline. “The city of South Burlington is always interested in taking advantage of technology that enhances its delivery of services to residents,” said Donna Kinville, South Burlington city clerk. The project included South Burlington-based legal team Gravel & Shea PC to assess the legal hurdles of using blockchain technology for commercial development. Natalia Karayaneva, CEO of Propy, said blockchain can help eradicate corruption and heighten security while also reducing transaction time. “In parallel to making land record management systems significantly more efficient, Propy’s additional safeguards ensure additional data integrity," she said. Colliers’ Hainer agreed there are reasons blockchain could become more commonplace in West MichiganHe said the local real estate market is as competitive as it has ever been, and players are looking for anything that could give them even a slight advantage A more common example is Client Relationship Management software, in which companies use data analysis to manage current and potential interaction with clients. Hainer said he did not see blockchain technology being prevalent in the near future, but as more players “test the waters,” it could become an industry disruptor later onBecause of the process of transferring titles and funds through intermediaries, real estate transactions and investments take time to finalizeBy contrast, securities and commodities can be transacted almost instantly. “Real estate has long been seen as one of the most stable and consistent investments one can make, but it is cumbersome,” he said“As the world becomes more interconnected, and as investors’ opportunities become limited, anything that can make a transaction quick and efficient while still being transparent is valuable.” Scott Nurski, multifamily investment advisor for NAI Wisinski West Michigan, said the long-term success of this project would depend on the longevity of cryptocurrency itself. “I’m not sure whether a title company will (or is able to) handle this type of currency directly,” he said“At the very least, a direct bitcoin transaction would require a seller who is willing to accept this form of payment.” Nurski said his speculations were based on the nature of the real estate market and not the nature of cryptocurrencies like bitcoin He further explained profits from other industries always have fueled the demand for both user and investment real estate, but what could change under a blockchain system is new, possibly international, sources driving demand — and naturally, rates — even higher. “There is already more capital chasing quality real estate holdings than there are properties available to invest in the U.S.,” Nurski said“If bitcoin brings new money, pricing will remain at historic highs, even if rising interest rates create a counter current in valuations.” Another concern he raised was the trading volatility of the currency markets in international dealsIf a seller were to accept cryptocurrency as payment, the price would have to be anchored to a sovereign currency, like the U.Sdollar. “Otherwise, a seller could get to the closing table and find that the agreed-upon sale price does not meet the seller’s expectations when the cryptocurrency gets converted to a ‘standard’ currency,” Nurski said. That volatility also could affect domestic transactions depending on how quickly the conversion rate of the cryptocurrency used could changeNurski said, based on his experience, most sellers won’t accept the risk of losing money on the property, which means the buyer would have to either accept the risk or take the buying funds out of the cryptocurrency at the beginning of the deal. “If I run a conversion check when the property is first put under contract, but the conversion rate is different at the time of closing (say 60 days later), I may end up receiving a different amount of proceeds in U.Sdollars,” he said“Unless the deal somehow guaranteed a certain amount of hard currency, a seller could end up with less than expected.” var addthis_config = { ui_language: "en"}; $(function(){ addthis.init(); }); Ehren Wynder Ehren Wynder is a Grand Rapids Business Journal staff reporter who covers real estate, construction and architecture, retail, beverages, transportation, energy, technology and county governmentEmail Ehren at ewynder at grbj dot comFollow him on Twitter @ehren_wynder Recent Articles by Ehren Wynder Muskegon’s initial ‘skyscraper’ is reborn Triangle builds on first 100 years Editor's Picks Does XFL have a future in Grand Rapids? Open Systems Technologies launches digital consulting division Michigan sees housing permit increase // var disqus_developer = 0; var disqus_shortname = "grbj"; var disqus_identifier = "article-90023"; var disqus_url = "http://www.grbj.com/articles/90023-real-estate-execs-dismiss-bitcoin-frenzy"; var disqus_title = "Real estate execs dismiss bitcoin frenzy"; /* * * DON'T EDIT BELOW THIS LINE * * */ (function() { var dsq = document.createElement('script'); dsq.type = 'text/javascript'; dsq.async = true; dsq.src = '//' + disqus_shortname + '.disqus.com/embed.js'; (document.getElementsByTagName('head')[0] || document.getElementsByTagName('body')[0]).appendChild(dsq); })(); Please enable JavaScript to view the comments powered by Disqus. Comments powered by Disqus var disqus_shortname = "grbj"; (function () { var s = document.createElement('script'); s.async = true; s.type = 'text/javascript'; s.src = '//' + disqus_shortname + '.disqus.com/count.js'; (document.getElementsByTagName('HEAD')[0] || document.getElementsByTagName('BODY')[0]).appendChild(s); }()); // Restricted Content You must have JavaScript enabled to enjoy a limited number of articles over the next 7 days. Please click here to continue without javascript. $(function (){ $('.article-show .body .image').each(function() { $('.article-show .body .image .caption').css('display', 'block'); if ($(this).find('img').width() > '125') { $(this).width($(this).find('img').width()); } else { $(this).width(125); } }); }); $(function () { $.get("http://www.grbj.com/articles/log_view/90023"); }); About GRBJ Since 1983, the Grand Rapids Business Journal has been West Michigan's primary and most-trusted source of local business newsThe weekly print edition of the Business Journal, a must-read for the area’s top decision-makers, is known as the business newspaper of metro Grand Rapids, Holland, Muskegon and all of West Michigan. grbj.com provides the same trusted and objective business reporting that the Business Journal is known for -- plus real-time original content, timely enewsletters/alerts, exclusive blogs and more. Business Journal subscribers receive the weekly print edition, including bonus publications like the annual Book of Lists, and also complete access to all content on grbj.com. The Grand Rapids Business Journal is published by Gemini Publications. Subscribe | Register for grbj.com | Follow GRBJ on Facebook | Follow GRBJ on Twitter GRBJ.com homeaboutauthorsnewsprintblogscalendarenewsletterspodcastscommunityRSS Get GRBJ registersubscribelist storereprintsadvertisefacebooktwittercontact us

Trending Vermont News:


  • Virginia open houses Nov. 19-20
  • Montpelier storefronts filling up
  • Vt. Chamber names Pomerleau Citizen of the Year
  • The Return of Light: Swedish St. Lucia Rolls
  • Winter storm triggers power outages in Vermont
  • Triple block in Vermont attracts developers and builders
  • Vermont Community Forced to Destroy, Leave Their Homes
  • The Latest: Storm in Vermont is the biggest in 2 years
  • DiamondRock to Buy 4 Blackstone Hotels for $495 Million | bloomberg.com
  • Christmas trees to be turned into energy in Burlington
  • This house is full joy! Peek inside this home that was painted by 27 artists
  • Crosspoint Shopping Plaza Project Act 250 hearing set
  • Phone scams seeking utility payments rise in Vermont
  • Los Angeles homes for sale: What $520K buys you
  • Trump Tweets That North Korea Won’t Develop the Ability to Nuke the U.S., So Everyone Can Relax
  • Vt lawmakers hear task force report on Irene
  • Vermont's Governor Honors Electrical Lineworkers
  • Vermont Man Maintains Innocence in Relatives’ Mysterious Deaths
  • Plastics firm responsible for PFOA pollution to pay for water lines in southern Vermont town
  • Public safety meeting held in Arlington, VT regarding recent crime