Main Content

Would you sell your home for Bitcoin?

I’m writing this article as of January 22 2018 and it’s 11:22 AM, one bitcoin as of now is worth $10,510 and change. Bitcoin is the most famous cryptocurrency and even if just lately become famous it’s been around for quite some time. What is a bitcoin? It is a cryptocurrency and nowadays is accepted for worldwide payment of every kind, real estate included. It is a digital currency that work without a central bank, it is untraceable, not well regulated, not endorsed or supervised by any government and incredibly volatile! It became a form of investment, or a gamble, for many people around the world, if you think about it is the opposite of what real estate represent as an investment. The first single family real estate transaction involving bitcoins happened in 2014 in Texas. The buyer used bitcoin to purchase the house while the seller requested the conversion in dollars during the transaction by using a Bitpay service with headquarters in Atlanta. The timing was really important for the buyer as the seller requested a fixed amount of dollars, so it was just a matter of how many bitcoin the buyer would have to exchange in order to pay the price agreed on. Now take a pause and think about it, a couple of hours can make a big difference in a transaction of this kind. The value of the house you are purchasing stay the same, but what you are paying for it with will not- as of now I’m 20 minutes in to writing this and the value of a bitcoin is $10,630- $120 higher than when I started. The timing ended up being perfect considering the fluctuation of the previous few days.

In the case of Shaoul redeveloping a building on Manatthan’s Lower East Side, turning it into condominium priced between $700,000 and $1.5 million or x number of bitcoin, shows that there are sellers willing to keep that currency. In fact Shaoul is using that as an edge on the market because it could make it easier for people coming over from other countries to complete real estate transactions and his intention is to hold on to the bitcoin instead of converting them into US dollars.

Now let’s pretend I’m going to sell my house for bitcoin and keep them as an investment, I would list my house for $250.000. We’ll pretend I get full asking in bitcoin, that makes a total of 23.52 Bitcoin. Now I don’t have a house anymore (and probably a wife because she left me) but I have an investment that can make me rich in no time! It’s a gamble, it’s the future even if I don’t really know how long is going to last. In the meanwhile the value of the bitcoin raised to $10.700, I made $1,664, enough for me to go back to Italy since I don’t have a wife or house anymore.

Salvatore Triolo