The seller of a USD 9,975,000 mansion near Dallas, Texas is accepting Bitcoin. The mansion has 5 bedrooms, 5 bathrooms, a 5 car garage, and an elevator to a 2nd-floor guest suite. This is just another example of how Bitcoin can be used as a currency even for large real-estate transactions.
As of this writing, the current market price of Bitcoin is USD 8,200, so it would take approximately 1,216 Bitcoins to purchase this Texas mansion. However, if someone were to mortgage the mansion they would only have to put USD 2.02 million down, or about 246 Bitcoins, and then pay 7 Bitcoins a month for the mortgage. This assumes no Bitcoin price volatility, which is a bad assumption. Bitcoin’s price often fluctuates by up to 10% in a single day, which makes it less than ideal for large transactions.
However, there are services available to insulate merchants against price fluctuations when accepting Bitcoin, like BitPay and Coinbase. These services instantly convert Bitcoin to fiat at the time of sale and deposit money into the merchant’s bank account.
This Texas mansion is the newest addition on a growing list of real-estate transactions that have accepted Bitcoin. Recently a home in Delaware worth USD 1.35 million became the first successful real-estate transaction involving Bitcoin in the Northeast United States. In early 2018, a mansion in Miami was sold for USD 6 million of Bitcoin. Richard Hilton put the USD 44 million Palazzetto mansion in Rome up for auction and offered Bitcoin as an option. The first real estate transaction involving Bitcoin in Europe was successfully conducted for an apartment in Barcelona, Spain in January 2018.
The use of Bitcoin as a currency for real-estate deals has been quickly accelerating since the first United States real-estate transaction with Bitcoin in September 2017. Since then 20 homes worldwide have been sold for Bitcoin. Realtor Stephen Burke says in 5 years 25-30% of real-estate deals will be conducted with cryptocurrency.
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