Laszlo Hanyecz spent 10,000 bitcoins to buy two pizzas back in 2010. It was the first-ever recorded transaction of Bitcoin for a physical good, and it paved the way towards mainstream adoption of cryptocurrencies.
Since then, the use case for the currency has taken off, and you are now able to use Bitcoin and other cryptocurrencies for online shopping, airplane bookings, and even real estate deals.
Nowadays you can already buy a house with bitcoin. And this is what you need to know.
The benefits of buying a house with bitcoin
With bitcoin and blockchain technology, buyers and sellers are given an opportunity for a more seamless and secure way of recording and proving property ownership.
The process of using the blockchain and crypto to buy a house doesn’t require every participating party to fill out an endless amount of paperwork. And even though the real estate industry is traditionally risk-averse, bitcoin-only transactions for real estate deals are slowly but surely finding their way into our everyday lives.
With that in mind, the laws that allow blockchain technology to play a part in property sales and proving property ownership are getting formulated in a lot of countries, which means that some aspects of the process still involve traditional financial institutions.
As an aside, I would just like to mention that some speculators believe that Bitcoin was created as an answer to the financial crisis of 2008, which was caused, in part, by the US housing bubble. In that sense, it is somehow poetic that bitcoin is now also being used to buy houses.
For a currency that just celebrated its 10th birthday, this is quite an achievement in terms of how quickly it gained widespread acceptance. There are now a lot of ways to spend your bitcoin, apart from buying pizza, of course.
Because if I can buy food with it, then it’s it’s as real as any other money, right? Food is a basic necessity — if I can eat from Bitcoin, I can live off of Bitcoin. – Anonymous
Buying real estate with bitcoin
It is a growing business and some people believe that bitcoin will play a big part in the future of the housing market. The first pioneers started to buy real estate with bitcoin sometime in 2014, so we are still in the early days.
The growing pains
Keep in mind that the property price will still be fixed to the local currency due to the fluctuations in the cryptocurrency markets. This means that bitcoin real estate prices are often subject to change.
The upside is that you will often be given significant discounts if you use cryptocurrencies for your purchase. This is because the sellers expect the bitcoin price to rise, in which case they will be covering their discounts.
In any case, buying a house with bitcoin is not as hard as you may think. You (as the buyer) just need to find a seller who agrees on exchanging bitcoin for the property.
Sure, this may be easier said than done, but today, you can already go online and find literally thousands of properties which can be bought with cryptocurrencies. If you wish to buy a house with bitcoin in 2019, your best bet will be going through a platform like Propy.
It is often cited as the best crypto real estate project and we will be taking a look at their service in more detail in one of our upcoming blog posts. Suffice to say that they are helping us move towards a world in which we can easily buy properties with cryptocurrencies.
In short, Propy allows buyers, sellers, brokers, and notaries to come together through the utilization of Ethereum smart contracts on blockchain to facilitate transactions.
Propy use case
You can visit their website right now and enter the city of your choice to find properties that range in price from not more than 100 BTC and all the way to properties that sell for more than 1000 BTC. How cool is that?
So if you visit London and pick one of the properties, the user experience isn’t that much different than if you were to go through a more traditional online real estate agent. You see all the relevant information about the property type, its area, number of rooms, etc.
The exciting part for us crypto enthusiasts is that you will see various crypto payment options and that the transaction and proof of ownership will be executed through smart contracts on the blockchain.
In order to go through the process of buying a property, you will need the Propy token. You can instantly buy it with euro right here on Kriptomat.
With Propy we showcased just one example of how you can enter this new and exciting world of transferring property ownership.
There is no denying that the real estate market is getting increasingly modernized through the use of blockchain and smart contracts.
Kriptomat strives to support the best projects with actual real-world use-cases, so we have already added the Propy (PRO) token to our list of cryptocurrencies. Find out how to buy Propy right now if the idea of buying a real estate with crypto is appealing to you.
Disclaimer: Our blog posts do not represent an investment advice and nothing in them should be construed as investment advice. Blogs merely provide information and education for the interested public.