A buyer from Austin, Texas has just purchased a property solely with Bitcoin. A statement on the companies website advised that on September 18, Sheryl Lowe, a Broker Associate with Kuper Sotheby’s International Realty represented the undisclosed buyer for an undisclosed sum. Bitcoin is the world’s most popular cryptocurrency and has apparently moved along from its shadowy past.
Last month, a Miami Florida man from Coral Gables agreed to sell his $6.4 million home using Bitcoin. This is basically one of the very first properties to be listed with Bitcoin, specifically when there are new and unexpected changes taking place in the new currency. Of course, this listing won’t be the last. Actually, we are entering a new trend of economy wherein we will see a transformation in the pattern how real estate is purchased and sold in South Florida.
Actually, we are entering a new trend of economy wherein we will see a transformation in the pattern of how real estate is purchased, sold and even marketed. Only yesterday, a London man and his family of 3 have revealed plans to sell their London home for 450 Bitcoin, about $1.3 million British Pounds ($1.7 million USD or 2.25 million AUD).
The seller of the Coral Gables home stated to his agent, Stephan Burke, that he was planning to sell the house, but there was one catch, he would only sell if he could do so using Bitcoin.
The Coral Gables home is not the first, a casino developer in Las Vegas announced similar kind of Bitcoin sale for his house a few years back. Unsurprisingly now, the home buyer made a whopping profit of an additional $1 million through using Bitcoin when the value of currency fluctuated unexpectedly after the sale was made.
Realtor magazine in 2016 stated that in addition to real estate, there are about 2.5 million plus items that can be purchased using Bitcoin and is growing exponentially each month. Property professionals as a group are on the rise in Bitcoin adoption, valuers & appraisers, real estate agents, title companies, property marketing and even brokerages are all entering into the world of Bitcoin, with the hope to gain more business through currency acceptance.
There are many analysts out there that see industries like real estate as the perfect fit for Bitcoin adoption. Largely due to the industry already employing the use of technology to handle escrow, titles and electronic exchange of large funds to complete the sale of a property.
Normal acceptance is the major obstacle Bitcoin needs to overcome. On the other hand, the concept of Bitcoin is a little difficult to comprehend for the average consumer right now, where headlines related to Bitcoin criminals and hackers cause points of concern. Ideally, there will most likely be rigor concerning Bitcoin transactions of property before it enters Main street.
It is, however, expected that the acceptance of Bitcoin will occur sooner rather than later, as the world is transforming & adopting the currency at a lightning speed. Looking at the current market condition, analysts predict that many title companies and banks will employ crypto-based (Bitcoin) process within the next 10 years, where transactions will be faster and more secure.
Many believe that Miami is a perfect ecosystem for Bitcoin, enabling investors and buyers from many different countries such as Russia, Canada, Asia, South America and the Middle East the best opportunity to carry out their purchases smoothly and at a faster rate (which is actually not a very smooth process currently). Miami indeed will set an example for the world when it comes to the trend of Bitcoin and property professionals need to gain knowledge on this developing technology which could well completely disrupt the entire property marketing, sale and transaction process.
Propify, an Australian based startup has already commenced proceedings to use cryptocurrency and Blockchain to underpin its property marketing process. They claim the process is much more secure, faster and more reliable than existing property marketing websites like Zillow, Trulia, Realtor and Redfin to name a few. I guess we shall wait and see.