Over the past year, an increasing number of real estate offers have begun accepting or requesting cryptocurrency for payment. Some sellers only accept Bitcoin as a means of payment.
According to Mashable, real estate site Trulia had about 80 entries, the Cryptocurrency mentioned last month, while Redfin said it is the number of entries that accepted cryptocurrency rocket from 75 in December to 134 in January.
To make it work, you need two parties to agree on the deal, according to real estate broker Piper Moretti, who has completed five sales with Bitcoin.
As a rule, buyers and sellers agree on a fixed price in dollars and then opt for a fair exchange rate at the time of closing. The bitcoins are then converted into cash by a third party, such as BitPay, and the money is then given to the seller. Buyers take all the risk, Moretti said.
The opportunity has enabled the newly-educated Bitcoin millionaires to relieve some of their cryptocurrencies, which are constantly changing value, for a more stable asset.
But skeptics warn that the Bitcoin bubble will burst. Fears over stricter regulation caused Bitcoin’s price to fall to $ 5,947 in February, or 225% below its record high in December. The currency is now trading over $ 10,000 per coin, though it remains extremely volatile.
Million dollar homes for Bitcoin
According to the listing for this lake house on the edge of California’s Joshua Tree National Park, it’s a «money maker.» The previous owner rented it out as a vacation home.
The four-bedroom, three-bath house has an in-ground pool, stunning lake and mountain views, and a gated entry. The asking price was $599,000 or the equivalent in bitcoin.
«It’s just crazy what’s going on,» Michael McCrae, the seller, told Money magazine about his decision to accept bitcoin. The lake house sold for $570,000 (near asking price) in January.