If you haven't heard of the latest financial craze, you must have been living under a rock for the last several months. Maybe you've heard of bitcoin, but you aren't sure of what it is exactly. Beyond acting as an investment and a financial trading platform, bitcoin is beginning to be used to purchase things that are usually paid for in regular currency. This includes real estate, could your next real estate deal include bitcoin?
Bitcoin is one of the best known crypto-currencies but it still has been known to have rapid and unpredictable price changes. However, the real estate market has been abuzz since a property up north was listed for sale, and terms of sale included the payment be bitcoin only. While bitcoin is not currently regulated by any bank, state or nation, it has been a popular means of investment for many thus far. Some experts believe that real estate would be the perfect platform for bitcoin, while others believe it to be a risky means of completing that transaction.
Bitcoin is considered a high-risk currency. However, Miami was ahead of the curve when the first Miami real estate property was sold for on Dec. 22 of this year for 17.741 bitcoin - the market equivalent of $275,000. This was for a two-bedroom condo in Miami at 777 NE 62nd St. in the Upper East Side. It appears that for the moment, one could seek out the involvement of bitcoin in their real estate transaction, if one so desired.
However, bitcoin is generally too risky for the average real estate buyer or seller. This is mostly due to it's unpredictable ability to gain and lose and because it's not regulated by an industry. For some, the risk is part of the excitement. For others, it creates too much uncertainty in a market that already fluctuates.
Source: miamiherald.com, "Bitcoin is booming in Miami. But can you buy a house with it?," Rene Rodriguez, January 26, 2018