Is it any surprise that bitcoin is becoming an acceptable payment method for property purchases? Perhaps the skeptics will continue to shake their heads, but for anyone who has been following the cryptocurrency over the last year, it is no more than the next step in the natural progression.
With bitcoin prices having increased dramatically in 2017, more homeowners are looking into ways of making the cryptocurrency market work for them. Forward-thinking property sellers have begun to list their properties with the option to purchase using bitcoin.
In a groundbreaking case for the city, the seller of a Notting Hill mansion in London worth $17 million is only accepting payments in bitcoin for the sale. In another case, a man unintentionally made $1.3 million in the bitcoin to USD conversion while using it to purchase a house, according to Bitcoin Magazine.
With entire companies and websites such as Bitcoin-RealEstate.com specializing in this type of sale, it is no wonder that the world is hot on their heels.
Ben Shaoul of Magnum Real Estate Group is looking to make the most of the steadily increasing bitcoin value. In an interview with The Express, Shaoul mentioned that the company had been approached by three customers who had each enquired about the possibility of purchasing in bitcoin. The properties in question ranged in value from $700,000 to $1.5 million.
Although the prospect of cryptocurrency purchases is appealing to many, it is not without risk. As all cryptocurrency markets are highly volatile, most experts advise not to invest money that one cannot afford to lose. As such, they recommend using cryptocurrencies for investing smaller amounts as opposed to storing large amounts or all of one’s funds.
A key example of the standard volatility is the drop in bitcoin value from $7800 to $5500, which occurred recently. Unperturbed, Shaoul shrugs it off as the nature of the game, comparing it to the volatility of the stock market. He comments that people don’t suddenly stop trading stocks due to the risks involved.
Shaoul believes that his real estate company has gained a competitive advantage through the acceptance of bitcoin as a payment method. “Financial companies who get on board with crypto’s will move into the future. Those who will not, will get left behind,” said David Johnson, CEO and co-founder of Latium, a recently-launched cryptocurrency program.
Countries all over the world are welcoming the advance of bitcoin and the digital currency market. Surprisingly, the United States is one of the countries falling behind in their ways of thinking. Johnson believes that America will be among the last to regulate digital currencies on their home turf.
David Johnson further expressed that he believes the reason some people are unsure about investing with bitcoin is a lack of technical knowledge of the market.
“Right now, you need a technical background to get involved, and I think a lot of everyday people are sitting on the fence,” he said. “Much like the evolution of computers. They all started out with very technical user interfaces before they developed ease of access.”