On August 3, Bridgecoin Capital announced the release of a platform allowing users to invest their cryptocurrency in conventional real estate.
Notably, this model is the first tax-efficient technique for conserving wealth in the blockchain business established by a collaboration between real estate and cryptocurrency industry leaders, as per the latest insights Bridgecoin shared with Finbold.
The technique is accomplished by postponing the realization of cryptocurrency capital gains via the purchase of real estate in order to postpone the payment of taxes and diversify client portfolios.
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Tax implications
While the crypto industry is worth more than $500 billion, the real estate sector is worth more than $3 trillion. However, with $163 billion in capital gains realized by investors during the last crypto bull run, there were major tax ramifications. Taxes cost billions of dollars to crypto whales, institutional investors, accredited investors, and anybody else with profits.
Bridgecoin Capital’s team has created a completely regulated method in which a client may collateralize their crypto assets into a cash loan while avoiding the transfer capital gains tax, and then invest the funds into interest-flowing real estate deals.
Co-founder and CEO of Bridgecoin, Joey Billet, commented about the launch:
“We are proud and excited to introduce our platform to the crypto community. Our team has identified a key sore spot for successful investors regarding the capital gains tax. With our experience within both industries, we have found a way for investors to defer their crypto gains tax, while simultaneously diversifying their portfolio generating passive income. Our process does not tokenize real estate assets, but borrows our customers’ crypto while paying a flat rate as interest.”
He added:
“Bridgecoin clients can sleep at night knowing their rate of return is locked into tangible real estate assets where their money is safe.” This is the power of our newly launched platform.”
Users of the Bridgecoin platform not only gain from the tax and interest functions, but also from the robust and dependable infrastructure.
Bridgecoin’s launch will guarantee that cryptocurrency profits are invested in more productive endeavors than just paying taxes, and it will do so in a transparent and compliant manner.
