How To Buy A House With Bitcoin

Written by Posted On Monday, 04 November 2019 05:11

Cryptocurrency payment platform BitPay is set to process a record number of real estate transactions this year. As Bitcoin steadily grows in popularity and adoption increases, it’s becoming a medium of choice for those buying and selling properties at the high-value end of the market. Typically, the people involved in these transactions know what they are doing, so should the broader property market be paying closer attention to crypto? And if so, just how to you go about buying a house using digital money?

Fluctuating value

Take a look at the Bitcoin price chart over the past couple of years, and you can certainly see the appeal of using digital coins to purchase bricks and mortar. If you’d bought a $1 million property this time two years ago, it would have cost around 100 BTC. Today, those coins are only worth around $920,000, while the property is likely to have risen in value to $1.1 million or more. 

However, there are similar examples that turn the above on its head. One year ago, the million dollar property would have cost around 160 BTC, which are worth about $1.5 million today. In short, Bitcoin trading to make a quick profit is best done using conventional markets and a trading app like the one shown on the Bitcoin Revolution website, that will allow you to act quickly, react to market conditions or even automate the trading to let a robot do it all for you. 

Advantages to buying property with Bitcoin

The above cautionary notes do not necessarily mean that buying property with Bitcoin is a bad idea. There are other advantages to using digital assets in real estate that transcend price volatility considerations:

  • Speed – digital transactions are instantaneous and there’s no middle man, so the whole process can be completed faster. 
  • Cost savings – most forms of payment attract fees and commissions when buying property. These are reduced and sometimes completely eliminated with crypto.
  • Confidentiality – as Bitcoin is decentralized, personal information can be kept to a minimum. In other words, you can complete the transaction with complete anonymity if you wish. 
  • Getting the best deal – sellers who accept crypto typically offer a healthy discount to buyers willing to use this payment mechanism. 

Where to start

The most straightforward way to exchange digital assets for property is via a platform like BitPay. However, there are some banks that will accept direct transactions in cryptocurrency, so much depends on the seller’s terms. If you’re dead set on a particular property but the seller will only accept traditional payment options, then you need to sell or exchange your Bitcoins on a suitable third party platform.

Buying property with Bitcoin is still a relatively new idea. However, as general adoption grows, it’s likely to become more common in this market long before people start using digital currency to fill the car with gas or do their grocery shopping. Ultimately, many in the industry believe that it is a case of when, not if, buying a home using smart contracts and digital transactions will become the norm.

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