Shark Tank’s Barbara Corcoran believes that purchasing and selling homes using cryptocurrencies may be the future.
“It makes great common sense,” said Corcoran, in an interview with Money. “I’m being very optimistic because, as a long-term play, it’s perfectly suited for real estate transactions.”
While it may be uncommon to purchase and sell real estate using bitcoin, it’s not unheard of. Zillow, the online real estate marketplace currency has approximately 136 units that have the word ‘Bitcoin’ in their listings. Corcoran, known as the Queen of New York real estate, believes that home sales in cryptocurrencies will be increasingly more common in the future.
“It’s peer-to-peer, with no central anything, and that’s why it’s so powerful,” said Corcoran. “The main idea is to eliminate the middle guy.”
According to TIME, Corcoran believes that cryptocurrencies may even eliminate society’s need for banking institutions. “I really don’t expect banks to be around ten years from now unless they change their mode,” said Corcoran. “I don’t see why it’s going to be needed if bitcoin does what I believe it’s going to do.”
Cryptocurrency in Real Estate Faces Challenges
Despite Corcoran’s enthusiasm, she notes that the use of cryptocurrencies in the real estate industry does face a lot of problems. The fact that there is no insurance or appraisal can make people feel uncomfortable.
Furthermore, the wildly volatile prices of cryptocurrencies are also a significant concern. “I could agree, this week, that unit is worth $3 million,” said Corcoran. “If by next Tuesday, the bottom falls out and [the bitcoin] is worth $2 million, that $3 million agreement is useless.”
Corcoran has however decided to stay away from cryptocurrencies for more personal reasons. “I lose my credit cards at least once a week, I lose my cell phone once a month,” said Corcoran. “I can’t even imagine being like that guy in England, what did he lose, $127 million because he lost his private key code?”
Regardless of Corcoran’s personal reasons, the Shark Tank investor sees a future for cryptocurrencies despite the small bumps and setbacks. She also mentioned that others who say otherwise are “guarding the old guard.” “That, to me, is the death knell of an old business,” said Corcoran. “The big guys that control the marketplaces are always the last guys to see the train coming.”
The Cryptocurrency Industry Faces Harsh Critics
Despite the cryptocurrency industry’s growing mass adoption, it currently faces many harsh critics who have shunned the idea. Warren Buffett recently called bitcoin “probably rat poison squared,” while Jack Bogle stated to investors to “avoid bitcoin like the plague.”
While bitcoin’s price has slumped significantly from its all-time high of almost $20,000 in December 2017, it has not phased many of the bulls that are in support of cryptocurrencies. The divided opinions on the cryptocurrency industry and technology have even prompted Bloomberg to create a list of bitcoin Bulls and Bears.
According to Bloomberg’s list, Barbara Corcoran, is an investor who joins the likes of U.S. Securities and Exchange Commission Chairman Jay Clayton, European Central bank board member Benoit Coeure, and co-founder of PayPal and billionaire venture capitalist Peter Thiel and their support for the cryptocurrency industry.
Bitcoin critics are “underestimating [it]… It’s like a reserve form of money, it’s like gold, and it’s just a store of value,” said Thiel. “You don’t need to use it to make payments.”