How To Buy A House With Bitcoin

Bitcoins have been here for already some time, but the value of them has grown tremendously in 2017 alone. Bitcoins are getting accepted in more and more places, and they have been even considered as the new gold by Peter Thiel, the co-founder of PayPal.

But if someone told you seven years ago you could buy mansions with Bitcoins; you probably would have thought they’re crazy.

However, the new door to the Bitcoin world has opened. You can now buy a house with Bitcoin – and not just any house. Investors can afford expensive mansions and villas with Bitcoin alone.

And that makes the Bitcoin even more interesting than it already is.

The Rising Price of Bitcoin

The first thing that has ever been bought with Bitcoins were two pizzas, for the price of 10,000 Bitcoins – then worth about $40.

The value of the Bitcoin has grown dramatically in the past months. Since May 2017 the price has risen by around $4500, and reached the $6000 mark this October.

And it seems like it is only increasing more and more. This signifies the importance of Bitcoin and how much the currency will be able to buy on the market.

Properties Bought with Bitcoin

Buy house with Bitcoin

Bitcoins are getting more and more accepted at different shops, often noticeable with the marked sign ‘Bitcoin Accepted Here’. It was only a matter of time before Bitcoin took on real estate.

This September a Bitcoin transaction has been made in Texas for a newly built custom home. And it went pretty smoothly according to the broker:

“In all of my 33 years of closing transactions, I honestly couldn’t have expected something so unique to go so smoothly. In a matter of 10 minutes, the Bitcoin was changed to U.S. Dollars, and the deal was done!”

The seller converted the bitcoin into USD by using BitPay.

But apparently, Texas was not the first place where a house has been bought with Bitcoins.

In 2014 there was a transaction of 2,739 Bitcoins for a property at Lake Tahoe in California, worth $1.6 million at the time (would now be worth almost $17 million). The property included a golf course, cinema and an aerial adventure park.

Notting Hill house bought with Bitcoin

But this was just the start – since there are several properties for sale which will only accept Bitcoin. SkyNews recently came with the news that a mansion in Notting Hill, which has a value of £17 million, and six floors is on the market now, and will only accept Bitcoin bids.

In Dubai, there are 150 apartments for sale in the Aston Plaza & Residences that can only be bought with Bitcoins through Bitpay!

There are already 370 residences sold, with a price starting from 25 BTC. Michelle Mone, British entrepreneur and parliamentarian, launched the project together with her partner Douglas Barrowman. She believes Bitcoin is the currency of the future, hence there is no reason it shouldn’t be accepted in the real estate as well.

Why Bitcoins?

Now you know that people bought houses with Bitcoins, you may be wondering what the pros of this currency are. These are some of the reasons Bitcoin is becoming so popular:

It is fast

Transactions with Bitcoins are done within 10 minutes up to few hours, as a bank does not hold them for several days. Whenever you make a payment with bitcoins, the record of it will go to the blockchain where bitcoin miners verify the transaction. Yes, the transaction does take longer nowadays, but it is still faster than lengthy bank transfers.

It is growing

In 2017 alone, the price of the Bitcoin has grown by 500%, and it is still going. It is not only increasing in value, but also by acceptance. The ‘Bitcoin Accepted Here’ sign is showing up in more places, and it is taken more serious by the financial industry.

It is private

Bitcoin accounts aren’t linked to any names, addresses or other personally identifying information. But keep in mind that whenever you want to convert it into regular currency, anonymity will be lost.

It is cheap

Bitcoin transactions do not charge as many fees, in contrary to banks. And when the Bitcoin value grows, you can even make a substantial profit with it.

How To Invest in Property with Bitcoin

Buy a house with bitcoin

Whenever investing in a property with Bitcoins sounds appealing to you as well, you, first of all, you need to become an owner of Bitcoin yourself.

You need to choose a cryptocurrency wallet to store your money, for example, Ledger Nano S or TREZOR.

Investing in Bitcoins is the best when the value is at a relatively low point. You can either buy Bitcoins from exchanges or people directly via various cryptocurrency exchanges.

Want to buy a house with Bitcoin? Bitcoin Real Estate has several homes on the market that can be purchased with the currency. They also offer purchases with Ethereum and Litecoin. However, don’t be surprised that the prices are on a rather higher end.

Investing in property with Bitcoin is not for first-time investors – you not only need liquidity, you also have to have a substantial amount of both fiat and cryptocurrency on your account.

There are concerns about the future of Bitcoin – the bubble might eventually burst. However, investing Bitcoins could be a great idea of avoiding a possible devaluation and putting it into something brick and mortar.

Would you consider buying a property with Bitcoins? Let us know your thoughts in the comments below!

SHARE

Megan is a self-taught blockchain enthusiast. She enjoys combining finance with technology, from a less-techy perspective. BiteMyCoin is her most recent project underneath the umbrella of an international digital marketing agency ANCHOVY.