Instead of investing in cryptocurrencies directly, many individuals and financial institutions prefer buying into the public and private companies that are making an impact in the crypto industry through business operations. Aside from the investors, publicly traded companies are also shifting resources into blockchain, metaverse, NFTs and other cryptocurrency-related technologies. If you have been fortunate enough to have made a nice amount of money in the crypto markets and want to diversify into other assets, spending bitcoin to buy property may be an option for you that does not require selling your BTC first.Bitcoin is making headlines and waking up investors around the globe, including Wall Street. As a result, some sellers that accept digital currencies prefer to receive payments in stablecoins. Bitcoin volatilityīitcoin’s fluctuating price makes it a risky payment option for sellers who may not receive the value they hoped to get if the price drops wildly shortly after a transaction. While some real estate listing sites allow you to filter sellers by adding words such as “bitcoin” to your search parameters, you often have to reach out to the sellers for further confirmation. Cons Finding a sellerįinding a home seller who accepts cryptocurrency is not an easy task. Offering discounts to individuals who pay in bitcoin has become quite common among businesses that accept bitcoin, especially those that actually hold the digital currency on their balance sheets. If a seller is comfortable with receiving bitcoin they may offer you a discount. However, this can turn against you if BTC moons again. Therefore, when you are buying a house using bitcoin you are trading a volatile asset for a less volatile asset, which may be the right move for specific types of investors. The value of bitcoin can fluctuate wildly. Let’s take a look at the benefits and drawbacks of buying a house using bitcoin. Pros and cons of buying a house with bitcoin The majority of property companies that are listing properties for sale use a crypto payment provider to accept crypto but receive the funds in fiat currency. Through services like BitPay, buyers and sellers can protect themselves from bitcoin price fluctuations as the digital currency is exchanged into US dollars at soon as the payment is made.
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How to buy a house with bitcoin (crypto-to-fiat)Īlternatively, you can purchase a house using bitcoin by converting your coins into fiat currency at the time of sale by using a crypto payment provider. To ensure the payment goes smoothly, it’s best to use an escrow service so that all ownership documents are in your possession before releasing funds to the seller. However, in crypto-to-crypto real estate deals, you will have to contend with bitcoin’s volatility and trust between transacting parties. If you find a seller who is willing to accept BTC directly for their property, you can transfer the bitcoin equivalent of the home's price and send it to the seller’s address once the sale has been agreed on and all documents signed. How to buy a house with bitcoin (crypto-to-crypto) Sites like Open Listings allow buyers to search properties that accept cryptoassets like bitcoin and ethereum (ETH). BitPay has also handled other real estate transactions including the BTC 2,739 (USD 82m today and USD 1.6m back then) sale of a Lake Tahoe property in 2014.Ĭurrently, numerous property listing sites allow buyers to transact directly and indirectly using digital currency. According to the broker, Kuper Sotheby’s International, the transaction was processed through BitPay, which converted the bitcoin into US dollars. In June 2017, possibly the first-ever known bitcoin sale of a family property occurred in Texas. This was not the first time crypto and the real estate industry had converged. While the plan was later shelved due to high costs and regulatory pressure, this signified interest in cryptocurrency as a payment method in the property market. The real estate market has taken notice of the potential to use bitcoin and other digital currencies for payments.įor instance, in August 2021, the United Wholesale Mortgage announced a plan to start accepting bitcoin payments.
The real estate market is (slowly) adopting bitcoin Read on to learn how you can buy a house with bitcoin. Bitcoin payment providers like BitPay and BTCPay Server are making it easier for anyone to purchase a wide range of items, including real estate properties, with digital currency. The acceptance of digital currencies like bitcoin (BTC) as a payment method continues to grow globally.
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