Buy Homes in Bitcoins
September 6, 2017
Bitcoin millionaires are now looking to cashing in their digital currencies in luxury real estate.
Bitcoin trader Mike Komaransky has listed a 9,500-square-foot mansion in Maimi for 1,400 bitcoins, now equivalent to about $6.5 million. Komaransky also has agreed to accept Zcash, another form of digital currency. Komaransky first purchased the home in 2014 for $4.6 million.
Bitcoins, created in 2009, are a decentralized digital currency, or “cryptocurrency,” that can be bought, sold, traded, or earned over the internet. They can be volatile in value. The bitcoin currently trades for more than $4,000 for a single unit. Realtor.com® notes that a $20 investment in bitcoin six years ago would be worth more than $92,000 today. For those who did make that investment, they are reaping the rewards.
A few homes across the globe are now being offered for cryptocurrency. In Dubai, the developers behind a 2.4-million-square-foot luxury development say they’ll be accepting bitcoins.
“The tax issues are really straightforward; I don’t see any issues with that,” says Komaransky about the seven-bedroom, 8.5-bath Miami home he’s listing in bitcoins with real estate professionals. “Legal issues, I don’t see a problem. The actual transfer of value in the form of bitcoins? It may actually be less risky to make a transaction with bitcoins than cash. Bitcoins, due to their irreversible and instantaneous nature, make the process much quicker. And once you have the coins in your possession, it’s a done deal, and anyone can see it because it’s on the blockchain.”
Listing real estate agents Carol Cassis and Stephan Burke told realtor.com® that they’ve already talked to two bitcoin investors who are interested in the sale.
“For people who bought bitcoin years ago, they’ve seen its value increase a lot,” Burke says. “Buying a house with that investment is pretty interesting for them.”
Source: “Brother, Can You Spare a Bitcoin? Miami Mansion Is Listed for About 1,400 Bitcoins (or $6.5M),” realtor.com® (Sept. 6, 2017) and “Real Estate Project in Dubai to be the ‘First Major Development Where You Can Purchase in Bitcoin,’” CNBC (Sept. 5, 2017)
Updated: July 18, 2018