{"id":3818,"date":"2024-03-12T13:32:41","date_gmt":"2024-03-12T17:32:41","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=3818"},"modified":"2024-06-16T23:19:09","modified_gmt":"2024-06-17T03:19:09","slug":"bitcoin-creating-new-home-buyers-why-were-watching-the-crypto-effect-on-real-estate-markets","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/bitcoin-creating-new-home-buyers-why-were-watching-the-crypto-effect-on-real-estate-markets\/","title":{"rendered":"Bitcoin Creating New Home Buyers? Why We\u2019re Watching the Crypto Effect on Real Estate Markets"},"content":{"rendered":"\n
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Bitcoin is now available from mainstream financial managers. Suddenly, it\u2019s a significant part of U.S. investment and retirement portfolios. So, bitcoin is joining real estate as an asset class.<\/p>\n\n\n\n

At this point, the leading cryptocurrency can influence the costs of housing in some markets. Its rise even allows some people to buy their first homes.<\/p>\n\n\n\n

Let\u2019s take a closer look.<\/p>\n\n\n\n\n\n\n\n

For Holders, Is a Bitcoin Surge Like Winning the Lottery?<\/h2>\n\n\n\n

Prof. Scott R. Baker at Northwestern University looked into how people spend crypto profits. Do they behave as people do when the stock market\u2019s up \u2014 more relaxed about their spending, yet still focused on building their savings? Or do they act like lottery winners, exuberantly spending large sums?<\/p>\n\n\n\n

Prof. Baker\u2019s group reviewed the spending of more than 60 million people. Specifically, the researchers reviewed transactions through bank, investment, and credit accounts.<\/p>\n\n\n\n

They found that 16% of households have bought bitcoin or other digital money in the last ten years. While some of these people are \u201call-in\u201d on crypto, most aren\u2019t. Typically, digital currency makes up just a small percentage of people\u2019s larger investment portfolios.<\/p>\n\n\n\n

When they make gains in crypto, some of these investors spend at least some of their gains. Not as though they won the lottery, but enough to have an impact on local economies.  <\/p>\n\n\n\n

Retail Crypto Windfalls: Where Do They Go?<\/h2>\n\n\n\n

When the price of bitcoin goes up, profit-taking happens. And so does a wave of withdrawals.<\/p>\n\n\n\n

Turns out a lot of these investors\u2019 proceeds go into real estate. And withdrawals from crypto proceeds of $5,000+ do correlate with first-time home purchases. Seems to make sense, but it\u2019s interesting to see an actual academic study finding:<\/p>\n\n\n\n