Does cryptocurrency have a place in real estate? Absolutely!
Rick Caruso, the billionaire behind The Grove LA, recently announced that all Caruso tenants can already start paying in cryptocurrency.
“We believe that cryptocurrency is here to stay. We believe that bitcoin is a right investment for us,” Caruso told CNBC in an interview.
According to The Real Deal, a percent of Caruso’s cash reserves will also be invested in bitcoin.
Caruso also forged a partnership with Gemini, a digital currency exchange and custodian.
Convenience during pandemic
With this development, Caruso is not just providing comfort to its clients but also convenience.
While cryptocurrency is not yet as mainstream as it should be, it cannot be denied that there is a growing market for it.
For sure, there are some Caruso tenants who will find this favorable.
It’s convenient during the pandemic when all activities are done online.
But the best part is the versatility of the paying options.
In general, bitcoins have been used in various industries. But it’s not as widespread as it should be considering how people embraced doing transactions online.
But Caruso’s acceptance of cryptocurrency adds to its validity.
Not that bitcoin has ever been invalid but the general public was more or less hesitant to venture into the crypto world.
The tech-savvy, though, has been using cryptocurrency for years.
In real estate, a few companies list properties in bitcoin and regular currency. But it definitely is not the norm.
Caruso is the biggest American real estate company to embrace cryptocurrency.
How many tenants does Caruso have? A lot!
One of its biggest developments is The Grove, a retail and entertainment complex anchored by Nordstrom. Among the other popular tenants are Apple, Banana Republic, Barnes & Noble, GAP, Häagen Dazs, Lululemon, Maggiano’s Little Italy, Ray-Ban, SKIMS, Umami Burger, and many others.
But that’s not all!
Caruso also has a slew of hotels and residential properties including 8500, Excelsior, and Miramar Beach Resort.
Aside from The Grove LA, Caruso also developed Palisades Village, The Commons at Calabasa, The American at Brand, and a few more.
It’s understandable that people are still unsure about bitcoin. Cryptocurrency, after all, is quite volatile.
In a 2018 report, Los Angeles Times wrote about the first time a Southern California resident purchased a property using bitcoin. It was 2017 and the resident bought a New York mansion using 3,300 bitcoins, which was then equivalent to $3.225 million.
But in 2018, the value of 3,300 bitcoins could already buy multiple New York homes.
When it’s a good day, the payoff is great. Of course, there is also a bad day. That’s why a lot of people are still wary about venturing into the crypto world.
On the other hand, the use of bitcoins in Caruso properties will surely change Los Angeles real estate or even California as a whole.
Real estate has always been slow to embrace technology because of its nature. Buyers need to go out and check the property and so there is always a face-to-face nature to the business.
Now, it’s a waiting game if cryptocurrency will also change the real estate industry.