Penthouse in Miami going for $3.5 million worth of Bitcoin (or Ether)
Bitcoin has been gaining acceptance around the world.
Most recently we have seen several countries start to offer large scale items for sale in bitcoin.
From apartments in Dubai to million dollar all terrain vehicles, the list of items being put up for sale in bitcoin is increasing by the week.
The latest news comes from the United States. A house in Florida to be precise.
According to the news, Eric Fernandez, the owner of Sol/Mar Real Estate has listed a $3.5 million penthouse at the Blue Diamond in Miami Beach, saying the owners would accept bitcoin or ether as a form of payment.
Interesting, so it's not only for sale in bitcoin, ether would also be accepted. This marks the first time I have heard of a house being put up for sale in cryptocurrency for anything other than bitcoin.
Why Bitcoin (or Ether)?
Fernandez says that he believes it is only a matter of time before real estate purchases made in cryptocurrency start to gain in popularity.
His opinion is, not surprisingly, shared by many others in the real estate industry as the wave of bitcoin has been taking the world by storm lately.
Some have even noticed that international buyers are preferring to pay in bitcoin. Gee I wonder why?!
Either way, Miami is expected to be a leader of this growing trend.
Miami offers investors from South America, Canada, Asia and Russia a way to quickly purchase property in the States.
There are still challenges of course.
Obviously paying in bitcoin is not quite as simple as it may sound on the surface.
For one, there is no escrow agent like there is with a traditional real estate purchase.
Then you also have to factor in how much prices tend to move. Bitcoin fell by more than $1000 in less than 24 hours last week. Then it rallied by almost an equal amount a few days later.
That kind of volatility is great for traders and speculators but makes buying things difficult.
In fact there was a story a few months back where someone accepted payment for their house in bitcoin, and then held on to those coins instead of converting them to fiat. He ended up making an additional $1.3 million for his speculation.
That's great when it works out like that, but what about when prices go the other way?
A trend that is likely to continue?
As bitcoin remains in the news on a daily basis, I think we will continue to see its use cases only increase.
Though, at some point the technology will have to catch up with the demand if it really is going to be a viable means of exchange.
If it doesn't, perhaps a different cryptocurrency will take its place.
I'm looking at you steem!
Stay informed my friends.
Sources:
https://www.cryptocoinsnews.com/miami-realtors-bullish-accepting-bitcoin-list-3-5-million-condo/
Image Sources:
https://www.zoni.edu/miami-beach-fl/
http://www.litrejections.com/challenges-ahead/
Follow me: @jrcornel
Oh that's Miami Beach that I hear about. Great photo
I would like bitcoin to crash again at least one more time just to purchase more coins 😞 I love crypto it is so exciting to see how many valuable projects come out on a daily basis, with Lightning network and atomic swaps on VTC, LTC and GRS you have a coin for whatever purpose you need, whether it is for private payments or micro payments, not to mention future decentralized apps...there is really so much worth in the space.
This person selling the house is thinking of the possible profits 10 years from now!!! Could overtake Bill Gates Money!!
Which people like Bitcoin?
Nice one @jrcornel.i think receiving money for services in crypto currency does not have any direct gain to the person buying the house, since he will buy it at the current price of the currency with respect to the dollar. It would be the seller that would have the greatest potential gain, because if the coin appreciates in value, then he will have a lot to gain, far above the price He sold the house for,and also there would be a gain for the crypto industry in general, cause increased use of crypto would lead to increased value of crypto. So in my own understanding the buyer and seller will both gain in the long run, while only the seller has the potential of gaining in the short run that is at the time of the sale. Great article
Though the buyer might feel bad if he paid in bitcoin priced at $7,600 only to have to it run to $10,000 a few weeks later. Buyer's remorse. ;)
Lol, but it would be the same thing as buying it for $7600 cash, and the bitcoin price then goes to $10000. I feel the only person that would feel bad will be the seller if he sold the house for $7600 bitcoin, and bitcoin falls to $6000.😂😂
Wow. Great post. This is my first time too. Never heard of a house being put on sale in crypto. I also share same belief and also think Miami will lead.
Lol... " I'm looking at you steem "
That's exactly one of the main reasons I got here when i first heard about the planned future with STM and all that.
Thanks for sharing! Great post as usual.
Interesting story. It seems a big risk for the seller unless he is planning to hold bitcoin long term. Also, if any taxes are due from the sale then he might have to sell some bitcoin to pay those... another risk for the seller with the current volatility.
Great News!! Bitcoin is booming like anything!!
Sounds to me like the perfect application for a "Smart Contract".
I have to wonder what the tax implications are though.
Maybe @lexiconical can provide some input as to the Capital Gains liability?
I was wondering that as well. Since bitcoin isn't regarded as a currency in the states, it presents some interesting tax issues.