The Big Deal Over Bitcoins in Real Estate

It’s become obvious that bitcoins, the seemingly-ubiquitous cryptocurrency, are not just a flash in the pan. Currently trading at almost $800 USD to one bitcoin (BTC), it seems like one can’t take a step lately without running into a new company that accepts bitcoins, online or otherwise. If you thought it was strange to think about using your virtual wallet to pay for software, dating site memberships, or Facebook game purchases, just imagine using bitcoins to buy a house. It’s an idea that’s been floated more than once, and the general consensus is that this could be something with legs.

Those bitcoins sure are trendy, but can you use them to buy a home? Image by Jason Benjamin (CC).

Using bitcoins has advantages – and more than just seeming hip and too-cool-for-cash, too! There are no transaction fees with which to contend, and, depending on when consumers bought into their bitcoins, some purchases could actually be cheaper this way. Add in the US government’s tentatively favorable stance on the matter, and it’s not hard to see the appeal. Of course, no cryptocurrency is backed by the Treasury, so the value of bitcoins can and does fluctuate on a daily basis. Those willing to take the risk could cash in tidily if the wave keeps rolling… or they could lose it all.

In Manhattan, one of the country’s most-booming markets, bitcoins have gained a bit of traction in real estate transactions. The alternate currency’s acceptance by a handful of brokers has made it easier for Russian and Chinese buyers to invest, and has attracted wealthier, younger clientele. Some brokers remain leery of accepting currency that can’t be used at the local department store, but the innovators going out on a limb for bitcoins are already reaping rewards in the form of plenteous press and media attention.

UPDATE: The CenterCityTeam is proud to announce that we are the first real estate team in Philadelphia to accept Bitcoin.  As the currency is relatively young and untested, we can only accept it for certain transactions. Contact Frank for more information!