Bitcoin is a next-gen, all-digital currency that is already a global phenomenon.
Developed with high levels of anonymity and security in mind, it is touted as a possible substitute for paper- and – coin-based cash in the not too distant future.
Some industries, including residential and commercial real estate for sale, are capitalizing on this emerging trend by allowing customers buy property via Bitcoin. It is a significant departure from tradition, but it is one that is fast gaining momentum.
1. Miami, Florida
A Miami man recently made news by selling his house in Coral Gables for more than $6 million — or roughly 1,600 BTC.
The steep selling price is sufficient to rattle the headlines, but Bitcoin has been a part of the Miami property market for many years. Though it was just found in 2009, tech-savvy realtors, buyers and investors immediately embraced the new cryptocurrency in replacement of searching through mortgage broker websites to get some good fiscal advice.
Realtors in the area are convinced that South Florida — especially Miami — is the ideal marketplace for Bitcoin. They mention the worldwide reach of Bitcoin as a main element in driving increased attention and interest to the area. Using an alternate type of money opens up properties to investors and buyers from all around the world, including Asia, Canada, South America and much more.
2. Dubai, UAE
The United States is not the only nation to capitalize on the expanding Bitcoin trend. A programmer located on the Isle of Man recently announced plans for a joint residential-commercial development valued at $325 million. Prospective residents will have the ability to use Bitcoin to buy their property, with studio apartments starting at 33 BTC and one-bedroom flats from 54 BTC — or roughly $250,000.
Some of the development’s commercial real estate have already been sold for contemporary money, however, the remaining residential properties are earmarked for Bitcoin purchases. Commercial units aren’t currently available for purchase through the popular cryptocurrency.
3. New York, New York
Investors and real estate agents in The Big Apple also consider Bitcoin as the way of the future. The group with Magnum Real Estate is presuming an enormous risk by accepting Bitcoin for purchases and deposits for newly converted apartments in Manhattan’s East Village. Called Liberty Toye, the land represents a massive shift in how we conduct business this century.
Real estate investment trusts have been trying to diversify their portfolios this year, and New York City provides the perfect launching ground. Known as an entrepreneurial-minded city that is not afraid to take risks, we already see houses and flats available for Bitcoin. It’s simply a matter of time before commercial buildings start accepting cryptocurrency.
4. Lake Tahoe, California
The popular holiday destination of Lake Tahoe takes Bitcoin, also. An unnamed buyer recently bought a 1.4-acre property with Bitcoin on a 42-site hotel. The undeveloped property sold for $1.6 million, or 2,739 BTC, which makes it the biggest Bitcoin-driven property trade at the time that it happened in 2013.
According to reports, the Bitcoin purchase was initially the purchaser’s idea. While we have not seen any further developments between Bitcoin from the Lake Tahoe housing market, the sale shows off the potential of electronic currency in the business and opens the way for future prices in both the residential and business sectors. This means things like websites for mortgage brokers need to adapt to show things like Bitcoin conversion rates in the future.
5. Bali, Indonesia
The island of Indonesia is not the first place you would expect to find a Bitcoin-backed property transaction, but it was really one of the first places to encourage the cryptocurrency.
An unnamed buyer spent over 800 Bitcoins, and with the Bitcoin exchange rate of the time it would have added up to approximately $500,000, to get a villa in Bali.
Although residential realtors and buyers are familiar with using Bitcoin to buy property in Bali, we’ve yet to find any listings in the industrial or commercial markets.
Bitcoin and the future of property
Despite the uncertainty of this Bitcoin market, tech-savvy agents and investors are — at least for the time being — eager to take a risk on the cryptocurrency. Ensure you do research and construct a plan for the property you plan yo purchase.
There are many advantages in doing this, but the dangers are too steep for a few to take the plunge.