Bitcoin Real Estate – A Marketing Gimmick or Haven for Under the Radar Transactions
Recently there has been an upswing in news reports of real estate deals being completed in Bitcoin.
It’s something that people always ask about Crypto. What can you actually do with it?
Sure we’ve all heard the story from years ago about the person who bought a couple of pizzas now valued at 10 million dollars. But things have changed and the market is now mature. There are a lot of people looking to divest their interests and take profit from their gains.
First we heard early last month that a developer in Dubai was offering 150 apartments in a new development priced in Bitcoin.
Around the same time, The Guardian reported that a landlord in London was accepting deposits in Bitcoin (not a bad idea in our opinion given the fact the deposits are generally held for a minimum of six months, a long time on the Crypto markets!)
Later in the month, several sources reported that the first all-Bitcoin property transaction had been completed in Austin, Texas.
Finally, in a story further on the fringes it was reported that a flat in the South-side of Glasgow was sold for some 60 million ScotCoin. What is ScotCoin? A coin started in the hope of achieving notoriety tied to Scotland’s independence bid in 2014.
Just a Marketing Gimmick?
For all of these transactions, ultimately the seller cashed out the Crypto they received into fiat currency. Some would argue that this effectively made each of them a standard sales transaction using the profit from Crypto rather than a genuine crypto transaction. Others have dismissed these as being pure marketing gimmicks, riding on the wave of Crypto enthusiasm.
However, true Crypto to Crypto property deals do take place, although they garner less attention due to the dubiety of their nature. Much as OTC (over the counter) Crypto transactions account for more than half of all global trading, there exists an pool of off-market property transactions being done in Crypto which don’t make the headlines.
This is a huge market, and has been for years.
Buying heritable assets for Crytpo is big business as long-term investors looking for ways to divest their gains and take profit, without cashing out to fiat. Why? Every buyer has their own reasons. But it’s not impossible to imagine that attempting to skirt the tax implications of a deposit into fiat plays a role.
Dedicated websites such as Bit Premier and www.bitcoin-realestate.com cater to a range of budgets across a huge geographic area and demand is high. We spoke to a source involved in the market and he told us; “It’s big business. There are a bunch of folks who made millions in crypto who don’t know what to do with their gains. We help them take profit by investing in property worldwide. We assist them navigating the paperwork, tax liabilities and compliance issues and we ensure that both parties end up with an airtight deal.”
So whether it’s a holiday getaway in Tulum or a returnable rental investment in a major US city one thing is for sure. If you have enough Crypto, you can buy whatever you like without ever going near a fiat currency.
Where would you buy?