Bitcoin has been getting lots of press lately, largely because of the significant increase in its value over the past few months. As a result, many investors are looking at cryptocurrency as a possible investment alternative and today I want us to talk about whether it’s possible to buy a house with cryptocurrency.
Paying for a video game or sandwich with digital currency might seem something out of a movie, but today that’s a reality. With a single bitcoin currently trading at £27459.04, which is pretty appealing if you had invested in crypto back in 2013. Luckily, if you’re one of the 11% of Britons who are investing in bitcoin, you might be wondering whether you can spend a few coins on major investments such as real estate. If you’ve been waiting to buy a property using cryptocurrency, here is everything you need to know.
So, what about buying a house with cryptocurrency?
Property sales involving crypto are happening in the United States, but allegedly for all the wrong reasons. Today, cryptocurrency is big news and reporters are always clamoring for any news story involving this remarkable development. As a result, some real estate agents are using virtual currency to promote the properties they want to sell or as a way to promote themselves.
As we speak, several properties and celebrity homes are hitting the market with a ‘cryptocurrency accepted’ tag. One thing that’s for sure is that this trend will continue for as long as bitcoin continues becoming popular, but what does this mean for the common man? Is there a market for buying a property with bitcoin?
Buying Property With Cryptocurrency: My Opinion
Currently, I don’t see cryptocurrency as a feasible option for buying or selling a home. However, this doesn’t mean it will never be, but as of today, there are a few things holding virtual money back.
- It isn’t mainstream enough – One of the things that’s holding bitcoin back is that it can’t attract the number of buyers needed in today’s housing market if you solely offer the property sale in bitcoin. The best way would be if the seller adds cryptocurrency as an optional payment method.
- Trust – As a growing digital currency, bitcoin is causing some uninitiated level of concern, particularly when one wants to use it to make a bigger transaction. Although cryptocurrency-geeks will tell you that bitcoin is pretty safe, it’s still in the early stages, hence very few sellers will embrace it with total conviction.
- Volatility – The cryptocurrency markets are pretty volatile. Bitcoin seems to be flying quite high today, generating the type of hockey stick chart traders always dream of, but will this last? While there is a good chance the upsurge will continue (with some predicting prices of £350,000 by 2030), but there is no guarantee this will happen.
Although buying a property with cryptocurrency might be considered very risky at the moment, there is a market where bitcoin can become commonplace pretty soon – the lettings. With rental marketing growing fast, offering bitcoin as an alternative mode of payment can work here.
Elkins, K. (n.d.). Here’s the one thing you need to buy a house with bitcoin. CNBC. https://www.cnbc.com/2018/01/03/heres-the-one-thing-you-need-to-buy-a-house-with-bitcoin.html
What can you actually buy with bitcoin? (2021, February 5). The New York Times – Breaking News, US News, World News and Videos. https://www.nytimes.com/2021/02/03/style/what-can-you-actually-buy-with-bitcoin.html
Hamill, J. (2019, December 12). You can now buy a house in Britain using the cryptocurrency bitcoin. Metro. https://metro.co.uk/2018/02/23/can-now-buy-house-britain-using-cryptocurrency-bitcoin-7336728/