Real estate owners are starting to warm to the idea of cryptocurrency as a form of payment, both from tenants and in property transactions. However, there are some concerns keeping cryptocurrencies from penetrating the mainstream market—and the inherent risk is at the top of the list.

A recent Bloomberg article called Bitcoin’s volatility in valuation evidence that the cryptocurrency market is “unsustainable, stimulus-fueled frenzy.” Andrew M. Ouvrier, a partner at Cox, Castle & Nicholson LLP, also notes that this is one of the risks of using the currency in the real estate market. “On April 17, 2021, the value of Bitcoin plunged more than 14%, before rebounding slightly, causing the values of other cryptocurrencies to suffer similar large drops,” Ouvrier tells “Then on April 23, 2021, the value of Bitcoin and other cryptocurrencies plunged further as a result of a massive sell-off that wiped out over $200 billion of market value due in large part to the announcement that President Biden is expected to raise long-term capital gains taxes. China’s recent announcement that it would crackdown on the practice of Bitcoin mining caused Bitcoin’s value to plunge even farther.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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