By now you’ve probably heard about cryptocurrencies, especially the king of them all: Bitcoin. In reality however, “currency” is a bit misleading since it’s impractical, but not necessarily impossible, to purchase a candy bar or a burger, for instance, with Bitcoin or any other crypto currently being sold on any number of exchanges like Gemini or Coinbase .
What Bitcoin is, rather than a currency, is a store of value. Or put another way, it’s a digital asset. You might even think of it as digital gold. But unlike gold, Bitcoin is known to exhibit extreme price volatility, often times rising or dropping in value thirty to fifty-percent in a single day!
Nonetheless, many famous financial investors and billionaires, like Mark Cuban, Max Keiser, and Michael Saylor, are coming on board with Bitcoin, believing that it will be worth up to $1 million per coin in just a decade.
So then, back to the original question. Can you buy anything substantial with Bitcoin, like a house and/or property? The answer to this might come as a surprise. According to one recent report, a “new door to Bitcoin has opened.” It is now possible to purchase a house with Bitcoin . In fact, you can not only buy a house, but you can invest in a mansion or a villa in Italy or France.
That said, due to its volatility, many of you are likely planning on staying away from Bitcoin for the time being. But that doesn’t mean you aren’t in the market for your first house. In that case, you will want to stick to cold, hard fiat currency.
Naturally you’re going to need a loan, which means you have a choice. You can approach a traditional brick and mortar bank and go through the arduous time-consuming process of obtaining a mortgage.
Or you might consider a private lender, like Gauntlet Funding, hard money lenders Florida , who can potentially lend you whatever currency you need to purchase either your first house or even your dream house. U.S. based hard money lenders are not difficult to come by. Just do your research (simply Google “private hard money lenders near me”) and you’ll likely find one or two who meet your needs and wants.
But what if you wish to stay away from cash since its value seems to be depreciating on a daily basis along with the Federal Reserve’s love of constant money printing? If that’s the case, then a hard look at Bitcoin just might be in the cards for you. And now that you can purchase property with the digital asset, you might be doubly interested.
But before plunging headfirst into the volatile digital asset, you’ll need to know some of the basics behind buying your first house with Bitcoin.
The Rising Price of Bitcoin
Believe it or not, the first thing that was ever purchased with Bitcoin were two cheese pizzas back in the early 2000s. Their price? 10,000 Bitcoin or BTC. While that might sound like a lot, back then it was the cash equivalent of $40.
Since then, BTC has skyrocketed in price, reaching close to $65,000 per coin in early May of 2021, and in the process, creating untold wealth among many of its believers. On the other hand, by the end of that same May, BTC tumbled to just around $30,000 per coin, liquidating many investors over the course of a single day. Like you’ve been warned, this is a volatile asset, and one important best practice to keep in mind is to never leverage your BTC purchases.
However, despite it’s ups and downs, if you are to “zoom out” and look at the BTC price over the course of its short twelve-year lifespan, you will find that its value has consistently risen on average by 200-percent per year. No asset on the planet can possibly give you those kinds of returns. It also gives you an idea of how much buying power the asset might one day possess.
Properties Already Purchased with Bitcoin
Despite Bitcoin not being a real currency, it is however slowly being accepted at some shops around the globe. You might actually be able to purchase a candy bar after all! These shops might sport some signage outside, the words “Bitcoin Accepted Here” printed on it.
Some famous sports figures have insisted on being paid in Bitcoin rather than fiat currency also. That in mind, it was inevitable that Bitcoin might be used to purchase real estate.
Not long ago, a Bitcoin transaction for the sale of a new custom-built home in Texas was made. According to the broker, said transaction went quite smoothly.
“In all of my 33 years of closing transactions,” the broker said, “I honestly couldn’t have expected something so unique to go so smoothly. In a matter of 10 minutes, the Bitcoin was changed to U.S. dollars and the deal was done!”
How did the seller do it? He converted the BTC into USD by using BitPay.
Similar residential and commercial property purchases using Bitcoin are said to have occurred in Lake Tahoe, California, Notting Hill in England, Dubai, and other counties around the globe.
But is BTC the dominant form of currency when it comes to real estate purchases? Not by a long shot. But the digital asset is still very young as it approaches its thirteenth birthday. Like many teenagers however, it remains very volatile. But given time, and the rapid depreciation of the dollar, it could be the only way you buy a house.