Have you ever thought about paying your landlord or other renting companies using a cryptocurrency, in particular, Bitcoin for rent? Bitcoin is a decentralised cryptocurrency that has the potential to act as an effective payment alternative to fiat currencies. It makes a lot of sense to use Bitcoin for rent for multiple reasons. It’s a simple and fast payment option that removes any middlemen and has the added security of the blockchain which can track any and all Bitcoin transactions. It might be time to switch as cryptocurrency rent for Bitcoin is becoming popular.
What Can You Rent With Bitcoin?
The type of things you for which you can pay rent with bitcoin is limitless. Currently, there are hundreds of thousands of people paying different types of rent with bitcoin. The main items to rent typically involve:
- Renting a house
- Renting an apartment
- Renting a car
Typically, renting a house or apartment is possible through a rental company that acts as a middle man for the landlord to list apartment as rental property. These landlords take a large fee which can be a negative factor for both the landlord and the person paying the rent. However, if you use bitcoin to pay your rent there’s no need for the rental company in this instance, and you don’t pay the fees. The only fees you’d pay are the bitcoin blockchain fees which are extremely low in comparison.
Renting a car is a whole other ball game. The companies tend to own the car, and you’d have to rent directly from them rather than a person. If you rent a car with Bitcoin, it is more stable as you’d pay the amount in crypto and keep the car for the allotted time period. The main issue with this is finding a company that accepts bitcoin as a form of payment. There are a few out there but most try to stick to fiat currencies as it’s easier for them to do so.
How to pay rent with bitcoin?
It is quick and simple to use bitcoin for rent. Here’s a quick step-by-step guide on how to pay rent in bitcoin:
- Choose the product you’d like to rent
- Head over to the website and go to the payments page to confirm payment
- The company will give you a wallet address and amount to pay in bitcoin
- Open your wallet, input the wallet address and amount and confirm the payment
- You’ll receive a confirmation of payment once the company processes it.
If you’re looking to rent a car with bitcoin (Ryde, Lyft or Qeeq rentals are possible with Bitcoin) or rent an apartment with bitcoin then the steps mentioned above will most likely assist you in your adventure.
There are various companies that allow for rent with Bitcoin.
What do companies do with Bitcoin?
When you pay with bitcoin the companies or people you sent it to are likely to head over to Coinbase and convert it straight into fiat, so they can add it to their books. The volatility of bitcoin means these companies need to act quickly when converting the currency into fiat, as you may have paid a certain amount in Bitcoin and a week later the price could drop dramatically and these companies are left with less money than they bargained for. However, they take this on board when they agree to accept Bitcoin as payment for their rentable assets.
They can also choose to hold and invest like Microstrategy does.
In general, it depends on their crypto awareness, and mass adoption is about using cryptocurrencies as much as possible.
The Future of Bitcoin Rent Payments
There is a bright future for bitcoin and several other currencies designed to act as payment methods for several assets. The current bull run has shown that, with massive companies coming in to try and swoop some bitcoin. For instance companies like Tesla purchased 1B dollars worth of bitcoin, you can also buy a Tesla using bitcoin in case you were wondering. Paying rent in bitcoin will also become the new norm with almost all establishments across the globe allowing people to carry out transactions seamlessly.
However, before this can happen there needs to be a solid infrastructure put into place and the scalability issues of bitcoin need to be fixed. Currently, there are several steps you need to take before even considering paying with bitcoin. For instance, people need to purchase bitcoin from their preferred exchanges. This can have a small fee which already sets back many users. Then the companies need to withdraw which also incurs a fee, making it less attractive in that sense.
The more attractive points of bitcoin payments are that funds are 100% owned by the owner. This means there’s no need for banks to act as the middleman when carrying out transactions. These transactions will also be available for both parties to see. With the exact time and date, the payments were made.
Let’s say you want to go on holiday to a villa in a different country where the currency is different from yours. Making direct payments to the landlord for the villa with fiat will result in a fee of around 3 — 4%. The money will also take anywhere between 24 – 48 hours to reach the owners home. Paying the rent with bitcoin removes the time delays. The payments are made instantly and the user doesn’t need to worry about using 3rd party apps such as Remitly, Western Union or PayPal.
If you’re looking for an alternative payment method to using the typical fiat currencies then its recommended using either bitcoin for an alternative cryptocurrency to make payments with. Ideally, you want to find a company that accepts Bitcoin payments and make it easy for you to pay them on a regular basis. Things to remember is that bitcoins price against the dollar varies so the amount of bitcoin you’d pay per month can vary. So rent cars with bitcoin and even apartments if you’re able to locate an accepting landlord.