Properties That Can Be Bought with Bitcoin
Many properties around the world are now being sold for bitcoins. Riza Kamerakkas, Director at Sky Property Blacktown in Australia, has put up a property for sale and payments in bitcoins will be accepted. It’s located on 9 Emily Street Mount Druitt. The Daily Telegraph reports that this property might become Australia’s first to be sold only for cryptocurrency. There are quite a few other properties for sale that will also accept bitcoins as payment, a trend that could help cryptos reach mainstream adoption.
Luxury Properties You Can Buy with Bitcoin
For approximately $1.5 million worth of BTC, you can buy a property out in Australia’s Allambie Heights. It’s not just in Australia. In Thailand, there are luxury villas for sale at The Sanctum with prices starting at $1,315,000. You can pay for them using Litecoin or Ethereum (and bitcoins, of course). There are also some penthouses for sale in Panama for crypto. These penthouses could cost you around $4 million, all of which you can pay for them in bitcoins.
Properties Already Paid for With Cryptocurrency
Ivan “Paychecks” Pacheco, co-founder of Bits to Freedom, an organization that aims to make crypto-trading “within reach of everyone”, bought a condo in Miami for 17.741 bitcoins during the final months of 2017. As far as official records indicate, no property deal prior to this one was completed using only cryptocurrency.
It has also been reported that most people who use profits or holdings from cryptocurrencies to acquire real estate convert it to fiat currency first. For instance, the Wall Street Journal reported a $1.6 million property deal closed back in 2014 out in Lake Tahoe (Nevada, United States) and more recently a home sold in Austin (Texas, United States) using bitcoins. However, as soon as the sellers received their crypto payments, they opted to convert it to fiat currency (dollars) right away.
Why Use Crypto for Real Estate?
There are a number of pertinent questions that arise when it comes to using bitcoin or other cryptocurrencies to buy or sell real estate. First of all, given that bitcoin and almost all other cryptocurrencies are so volatile, why would anyone want to transact in them? The price of 1 bitcoin is currently $10,754, but just a little over a week ago it was around $14,000 (CoinMarketCap).
According to Matthew Gertler, a cryptocurrency lawyer and co-founder of Digital Assets Research, people can easily acquire a large amount of crypto while not having to overpay. He also states, “It’s often difficult to buy a large amount of Bitcoin at a time.”
Ragnar Lifthrasir, founder of velox.RE, a company that tries to bring the benefits of blockchain and crypto to real estate, says that the great thing about crypto is that you don’t need an intermediary such as a bank or an escrow officer. He thinks that having to go through a bank “can be a pain”. Many people feel the same way, and this might be another reason why crypto transactions in the real estate industry are becoming popular.
Mr. Lifthrasir also says that once real estate deals can be conducted entirely through a blockchain, then this could lead to greater efficiency and security. However, the current reality is that many people, including those with very deep pockets, are not crypto-savvy. There’s also plenty of negative information floating around, related to crypto.
So, if crypto-technology can continue to make advancements and eventually gain the trust of more players in the real estate market, then this could make the buying and selling properties much simpler and maybe even more lucrative.