The increasing liquidity of Bitcoin as a direct mean of payment is becoming increasingly valid on some online purchases, but has it qualified as legal tender in the eyes of positions of authorities?
Despite the outburst of the cryptocurrency in the U.S. it is still not classified as an acceptable mean of payment under most circumstances, which includes payment for a mortgage. There are a number of reasons for this:
- The currency is neither a medium of exchange nor does it have extrinsic value, which means that trading it digitally has multiple insecurities involved;
- The currency fluctuates massively over really short periods of time because it is decentralized, meaning that there is no single authority that governs its appreciation/depreciation;
- Real estate is becoming more and more valuable, so such incomplete payments may not do justice to them.
How To Utilize Your Bitcoin?
Getting a house is great after obtaining a mortgage loan, but the repayment is the part which ends up sucking the life out of the debtors till the very end sometimes. If you have, however, considerable amounts invested in Bitcoin and are being barraged with news about its ever-increasing rise in value, you will be able to assist your mortgage payment.
Utilizing your Bitcoin investment will involve you having to convert it back into US Dollars, which can be achieved through crypto exchanges. Crypto exchanges are different from regular currency exchanges and brokers because it is a lot more dependent on the availability of a buyer than the availability of currency with the exchange. It is, therefore, important to think of an exchange simply as a medium which allows to individuals to buy/sell cryptocurrency for fiat currency.
How Early Can You Get the Payment?
After understanding that crypto exchanges work differently, it must also be understood that you cannot rely on getting the exchange you want the moment you need it because buyers aren’t very easily available. If you get in touch with a broker, then the process may be easier because you will directly get cash/account transfer without the involvement of a third party.
The best way to put your cryptocurrency to good use under these circumstances is by contacting the customer service base of the crypto exchange of your choice and asking them how fast a transaction would be. Keep in mind that rates are also quite important, and it is much easier to find buyers on exploitative low rates than high ones, which can rid you of a really good investment. So, ensure that you have placed your currency up for grabs well before the payment is required.
Ways to Engage in Direct Payment
Unfortunately, there is no law as such or governance structure which allows mortgage lenders to be entirely comfortable with digital currency payment. However, if the lender has legally agreed to you paying him/her in such denominations then you can make a very simply crypto wallet-to-wallet transfer, which will count as the payment being made through accepted means.