The cryptocurrency bitcoin is increasingly coming into play in real estate transactions across the globe. One recent listing describes a 9,000-square-foot beachfront Malibu home on the market for $45 million, and the owner says he’s willing to accept bitcoin as part of the payment from a buyer.
“I’ve been interested since [bitcoin] started, and I’m always watching what’s going on,” Wei Tzuoh Chen told CNBC. “It’s going to be the future. It just depends which one is going to be stabilized in the current market.”
Chen says he has already invested in cryptocurrencies. He acknowledges that his neighbors think he’s crazy for accepting bitcoin for his home sale. He realizes the currency is largely unregulated and does carry some risk.
“According to the current situation, if you buy the property with cryptocurrency, it’s difficult to identify the cost of the real estate because it fluctuates so much,” Chen told CNBC. “The government will have a hard time to tax or put a property value on the house you are going to sell.”
Chen says the majority of bitcoin purchasers are outside of the country. “For this type of house and this amount, I think we’ll attract more international buyers than from our country,” he says.
New millionaires who invested in cryptocurrencies may be looking to cash in on real estate. Because crytocurrency can be so volatile, Chen says he only will accept part of the payment in it; the rest in dollars.
“I’m not saying it’s safe,” Chen told CNBC. “I’m just willing to take the risk for investment. Just like everybody else.”
Chen’s home, designed by architect Ed Niles, stands out from other homes in the area. It has multiple angles in every direction and the exterior walls are mostly windows.
Source: “Why This Homeowner Will Accept Bitcoin for his $45 Million Mansion,” CNBC (Jan. 11, 2018)