The cryptocurrencies, mainly Bitcoin, are beginning to entrench themselves in all kinds of places, and one of them is the property market. There have been many cases of houses, from modest dwellings in Grimsby to mansions in Notting Hill - that their vendors have given them a Bitcoin price tag.
There has to be something, since many real estate agents are seeing some surprising advantages simply by slapping a 'Bitcoin accepted here' sticker on the front door. Of course, the housing market and property transfer is exactly the type of market that is ripe for a Bitcoin-style disruptive takeover, but as it is, is it worth selling your house for Bitcoin?
One thing that is easy to see is that those who decide to place their houses for sale in Bitcoin are suddenly flooded with media that want to boost the adoption story. The £ 17 million Notting Hill mansion has seen unprecedented interest since it went on sale in October.
"Last week we had 15 visits, it came from Asia, I do not think we had more than 30." said Lev Loginov, co-founder of the London Wall real estate firm, which is selling the property.
Even a small, modest dwelling in Grimsby, on the north-east coast of England, attracted media attention from all over the world. Cryptocurrencies are at a stage where they still get a "surprise" factor when they arise in new markets, and that makes them news. However, as more people do, the media is likely to move forward.
A new market for new investors
As mentioned above, those who are showing interest in buying investments as large as a £ 17 million mansion are all young. Again, this makes sense since the adoption curve of the digital currency is much higher among young adults.
In the early days of Bitcoin, those who knew and invested in Bitcoin were generally young and knowledgeable about technology. Those are the first to adopt that were buying Bitcoins by the dozens, if not hundreds. Those same coins are now worth many, many times more, so much that they can be spent on something like a house: Bitcoin used to be worth enough to buy pizza.
Loginov adds that they are the first miners who own large amounts of Bitcoins. "There are many young people who got involved in cryptocurrencies at an early stage, most of them made money with cryptocurrency mining, and basically they are looking to acquire assets."
It seems that a Bitcoin real estate market could be exactly what young and promising cryptography investors need. Such a market would be very far from the usual bureaucracy that implies the acquisition of a house for fiat. However, some believe that selling houses for Bitcoin is just a marketing gimmick.
Saurabh Saxena, founder of Houzen, believes that people who invest in property do so for low-risk returns. This does not match the typical risk profile of Bitcoin investors. Saxena said:
"I sincerely believe that Bitcoin as a currency or means of exchange is not sustainable, it's a simple marketing gimmick, developers usually raise money from pension funds or private capital." When a pension fund invests in real estate, they usually expect a return from anywhere from 8 to 10 percent Real estate is a class of low to medium risk assets and offers low to medium returns Bitcoin is extremely volatile and therefore has a very high risk as a means of transaction," Saurabh Saxena.
Translated from its original source. Read here