The property has been bought and sold with Bitcoin before but, so far, the cryptocurrency has been used as an alternative to fiat currency given to willing buyers. Now, according to a report by CNBC, a $23.9 million mansion in London is going on sale and the only accepted pay is bitcoin.
The property, located near Portobello Road, in the Notting Hill district of London, can be purchased with over 4,200 bitcoins at current market prices, given that one bitcoin is currently trading at $5,703.36, according to data from Cryptocompare.
Lev Loginov, co-founder of the company who bought the property back in 2013, London Wall, believes that buying and selling property using bitcoin will be the future. He told CNBC:
“In 10 years from now, cryptocurrencies will take over. It will be in wide use just like debit cards and credit cards.”
According to Loginov, London Wall will soon start selling various properties for bitcoin. He believes that property ownership records can be transformed with the use of blockchain technology, as it allows them not to be tampered with while being easily accessible.
He admitted, however, that this was all still in an experimental stage, and that details of the sale are still being worked out. Since bitcoin is a cryptocurrency, the tax on the property will be paid to the government after the sale, but figuring out how the company will pay in bitcoin to the U.K. tax office is a challenge – fiat might have to be used.
Furthermore, Loginov hired a business intelligence firm, Quintel, and lawyer James Ramsden QC, in order to make sure that the bitcoins they receive come from legitimate sources, and that criminals aren’t using the company to launder funds.
Using Bitcoin to purchase property
So far, most of those who’ve tried to purchase property with bitcoin have been somewhat lucky. While bitcoin’s volatility has harmed a lot of people, a California man once lucked out big time in a house purchase, thanks to his decision to use cryptocurrency.
According to Bitpay CCO Sonny Singh, who spoke to Bloomberg Markets, the man made a whopping $1.3 million while exchanging his bitcoins, due to the cryptocurrency’s wild swings. When the transaction started, one bitcoin was worth $750, and $1,000 by its end.
At the time, Singh stated:
“The buyer actually ended up making about 25 percent of the currency exchange rate, essentially, in the appreciation. He got a house for pretty much 25 percent cheaper.”
Blockchain technology is also ushering a new method of ownership for real-estate assets with projects like Atlant. The tokenization of houses and other property allows investors to purchase and trade small portions of the asset with no centralized entity involved.