With the value of Bitcoin and Ethereum constantly fluctuating, property buyers in Dubai are increasingly turning to stablecoins to complete their deals. Stablecoins, because of their structure, provide considerable stability when compared to other crypto choices.
Whatever the situation may be, market sources advise buyers and sellers to proceed with great caution while making crypto transactions due to the current volatility. Firas Al Msaddi, CEO of fam Properties, noted that more customers are cashing out their crypto-based investments into property, which is increasing the volume of property transactions. Both the buyer and the seller should use trustworthy Over-the-Counter (OTC) exchanges and brokers to make sure the bitcoins they are trading are real.
These property owners are ensuring that the value of their assets is not harmed by the current volatility in Bitcoin and other cryptocurrencies by cashing out. This is when Stablecoins come in handy.
Firas Al Msaddi of fam Properties says that people are moving away from Bitcoin to pay for property purchases because stablecoins are more stable.
According to Al Msaddi, USDT and USDC are the most frequently utilized stablecoins. They are favoured because of their steady value versus the dollar. Unlike Bitcoin and other cryptocurrencies, the price of a Stablecoin is constantly tied to a fiat currency like the dollar, an exchange-traded commodity like gold, or even a cryptocurrency.
Currently, more developers and landlords are eager to accept cryptocurrency payments, and a legislative framework to facilitate such transactions is in the works. Until that time comes, all crypto-only transactions must be paid through OTC exchanges and in cash.
For property here, Bitcoin was the primary crypto currency for buying property until it crashed to its current value of $25,000 or more. It seemed reasonable at the time, with Bitcoin prices firmly above $50,000 before rocketing to $68,000 in November of last year. Bitcoin, in particular, was used to sign and seal complete property purchases.Since then, the pricing environment for Bitcoin and other cryptocurrencies has become very sticky.
A property consultant said that with further interest rate rises on the way and investors globally winding down or cutting their holdings in higher-risk cryptos, it won’t be easy for Bitcoin.