If the world of bitcoin and the price of bitcoin wasn’t gaining enough attention, this should spark even more intrigue. There’s now a penthouse listing in Miami’s Biscayne Bay area that recently hit the real estate market with a very interesting option for buyers. The unit, which is a one bedroom, one and a half bathroom gem is being sold for 33 bitcoin. This is at the request of the owner. The unit comes with access to the building’s spa, fitness center, and swimming pool.
It’s not wonder, really, that bitcoin is now checking in to the real estate market. The value of the cryptocurrency has skyrocketed this year near highs of $19,000 for just one bitcoin. It has been setting record after record for bitcoin price, which has triggered “crypto-mania” and a flurry of young investors flocking to get in on the action.
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Like other currencies, bitcoin prices change and fluctuate every minute of every day but until traditional currencies, those fluctuations are drastic. Bitcoin can surge to new highs one day and the next day the price of bitcoin could be 10% lower. As far as homebuyers and home sellers are concerned, it’s a double-edged sword. For the Miami location in particular, 33 bitcoin was worth roughly $560,000 but the previous week, it was worth nearly one hundred thousand dollars more.
“Buying or selling a home is generally the largest transaction in someone’s life. Switching to a currency with so much volatility puts people at risk in an area that should be a sound, steady investment,” said Nela Richardson, a chief economist at Redfin real estate in a recent interview.
Bitcoin started the year around one thousand dollars and now it has people taking out mortgages and maxing out credit cards in order to find money to make investments.
Even with its volatility, people are still scrambling to find more opportunity. The surge has been credited to younger buyers, millennials, and even first time investors flowing money into the cryptocurrency arena.
But this isn’t the first time nor maybe the last time we see real estate selling in exchange for bitcoin. Earlier this year there was a home that was sold for $6.4 million in the prolific Coral Gables area of Miami. But experts mainly see this as a unique event and not so much as a “new trend” beginning to bloom. Whatever the case may be, real estate brokers need to start getting familiar with the topic, and fast.