How do exchange rate fluctuations in cryptocurrencies affect real estate deals?

Cryptocurrency exchange rate fluctuations pose a significant challenge in real estate transactions. The value of cryptocurrencies like Bitcoin or Ethereum can change dramatically within hours, creating uncertainty in property pricing. For example, if a property is listed for 10 Bitcoin, the value of that amount can rise or fall sharply before the transaction is finalized.

To mitigate this risk, some sellers and platforms use stablecoins, which are pegged to fiat currencies like the U.S. dollar. This stabilizes the transaction value and protects both buyers and sellers from market volatility. Additionally, parties can use escrow services or agree to lock the cryptocurrency price at the time of signing a contract to reduce uncertainty.