Not too long ago, it was normal to wait in line as the person ahead of you wrote on paper checks. Eventually, these “physical” payments made way to pay with cards, a fingerprint, and apps. This trend of tangible currencies becoming “invisible” transactions has made payments quicker and more convenient.
Another payment trend is using cryptocurrency. Right now, these currencies are non-nation specific and have been accepted as a viable form of payment for countless online transactions.
Though cryptocurrencies like Bitcoin and Ethereum are no longer strange to see in minor online purchases, they’re still rarely seen when one makes a “big ticket” item like a house or condo. However, experts in the real estate sector project that in the next five years, 25-30% of buyers in the luxury real estate market will be using cryptocurrency.
When did it start?
In early 2014, a buyer made an offer on a villa in Bali for $500,000, or 800 BTC (Bitcoins). At that time, Bitcoin was only 5 years old, and that offer was a novelty. Other transactions followed that year, though they were few and far in between.
In late 2014, an anonymous buyer bought a 1.4-acre lot of land in California for 2,739 BTC, which at that time equaled $1.6 million. That same year, a buyer in Kansas snagged a single family home for 800 BTC ($500k).
Though these transactions were done through Bitcoin, they weren’t “pure” Bitcoin purchases. This means that the cryptocurrency had to be changed into US Dollars before the purchase could be finalized.
When did the true “Bitcoin only” real estate purchase happen?
It happened in December 2017. There were two transactions in Miami: one was a luxury condo for over $200k worth of BTC and another a mansion worth well over a million dollars in BTC.
The first house listing near Seattle, Washington was purchased with Bitcoin in early 2018, which was to be followed by more single-family home purchases around the United States. For example, in April 2018, a New York townhouse was listed for $45 million in Bitcoin.
A Future World
Real estate investments, which have long been under the yoke of mortgage lenders, lines of credit, and cash buyers are going to make way to accepting cryptocurrencies like Bitcoin.
With online real estate listings now openly saying they accept cryptocurrencies as a viable method of payment, they are expanding their buyer pool to the young tech-savvy investors out there who are itching to use their cryptocurrencies for real estate purchases. Whether you live abroad, Nevada, or even Alaska —cryptocurrency is a worldwide method of payment that is breaking the mold of how people will buy homes in the future.
Sources: https://goo.gl/QrvJrj & https://goo.gl/eKYXNZ
