Skip To Content

Bitcoin | From Wall Street to Your Street

Despite Wall Street and regulatory controversies, bitcoin remains a strong market presence, as reported by Bloomberg.com. What’s the future of cryptocurrency and real estate?

Miami Beach Cryptocurrency Luxury Penthouse Sale

Forbes.com reported on the recent sale in May of Miami Beach’s most expensive penthouse for $22.5M using cryptocurrency and blockchain, calling it the largest known cryptocurrency real estate deal in America;

On May 27th, $22.5 million of data heat, zeros, and ones quietly shifted across the financial landscape, transferring ownership of a shiny, new 5,067 square foot, full floor, four-bedroom penthouse in Miami Beach’s newest, uber-exclusive boutique condo building—Arte by Antonio Citterio—in the city’s tony Surfside neighborhood

Forbes.com

What’s happening nationally?

Trends across the US show an increase in the use of bitcoin and real estate. Yahoo Finance reported that more sellers — albeit still a small segment — are trying to get in on bitcoin and cryptocurrency through the hot housing market, according to Realtor.com data provided to Yahoo Money;

Last month, there were 71 listings that mentioned crypto or bitcoin in their descriptions on the real estate listing site. That’s 14.3 listings per 100,000 homes, the highest rate on record, according to the data.The previous high occurred in March 2018, during cryptocurrency’s last peak in popularity and prices. At that point, Realtor.com saw 12.7 listings per 100,000 homes.

Yahoo Finance

What about the greater Philadelphia area?

Five years ago when I marketed my clients’ tech friendly condos as the first Bitcoin real estate offering in Philadelphia, it broke through barriers, raised a lot of eyebrows and generated a great deal of press. I was interviewed live by Channel 6 News and asked to speak on a panel in Manhattan where I networked with cryptocurrency leaders in real estate.

We were able to offer a hybrid cryptocurrency sales model which involved converting the bitcoin to cash at some point in the transaction in order to secure title.

PhillyMag.com

At that time international real estate sales using cryptocurrency were active in Manhattan with international buyers from diverse places such as Dubai buying luxury properties with bitcoin.

In Philadelphia, with our old school title searches and land history back to Ben Franklin days, it seemed almost impossible to imagine blockchain and cryptocurrency active in Philadelphia.

Blockchain vs Cryptocurrency

The acceptance of cryptocurrency in the greater Philadelphia area has grown significantly, however we are a long way from utilizing blockchain as they did in the Miami Beach penthouse sale.

What is blockchain? It can be a hard concept to understand. In short blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.

Still confused? I understand. One of the clearest resource I’ve found are the free courses on Blockgeeks.com.

Questions about legal and financial risks of blockchain and real estate?

Fear of fraud is one of the myths around digitalized currency and blockchain transactions. For real estate, experts find the process of blockchain verification of data actually makes it a much more secure means of transfer of ownership.

Check out Manhattan attorney Max Dilendorf’s Legal Guide to Buying U.S. Real Estate with Bitcoin. His advice is specific to New York, but is a great resource for better understanding, detailing why blockchain as an extremely low risk for fraud.

Philadelphia attorney Jason Rabinovich, offers insights – Guide To: Blockchain – How will it Affect the Real Estate World

According to Investopedia, Blockchain is “a distributed database that maintains a continuously growing list of records, called blocks, secured from tampering and revision. Each block contains a timestamp and a link to a previous block.”  In layman’s terms, Blockchain is like one giant whiteboard that everyone can write on and everyone can see, but no one can alter or erase. Blockchain can be used to record anything of value.  Each party involved on a Blockchain is able to access the entire database and can view every past transaction.  To make the transactions official, Blockchain uses Bitcoin as a currency.

No one actually controls the Blockchain; each party has the same amount of rights to the information. This allows each party within the Blockchain to check the records of its partners directly instead of having to go through a middleman.  Once a transaction is entered into Blockchain, the data cannot be altered, because the data is linked to every transaction that has been entered in the system before them. Blockchain can also be programed to automatically trigger transactions between parties.      

Jason Rabinovich

Why would I consider offering my home for bitcoin?

In today’s sellers market, that may seem extremely far fetched and unnecessary. However, for luxury home sales in particular, you need to have extensive exposure to potential buyers to yield the highest offer – even in a hot market.

Moving wealth from cryptocurrency into real estate is a growing trend among international high net worth investors. Why wouldn’t you want your luxury home to be seen by these buyers?

National and international exposure is important even in strong sellers markets like the Main Line. In softer markets, like Rittenhouse Square and Mid-Town luxury condos, making your luxury lifestyle available to international cryptocurrency buyers may be the key to your successful sale.

Contact me today for a private consultation to discuss further.

Trackback from your site.

Susanna Kunkel

Susanna Kunkel brings her experience from a career in the executive offices of major corporations to her real estate business - treating each client like a CEO. With 17 years of experience selling luxury real estate, you can be confident in knowledgeable, personalized, confidential service. Hear what her clients say - www.AskMeAboutSusanna.com

Leave a Reply

*
*

About our blog

Subscribe for Main Line and Center City local news, updates, and in-depth market reports.


Categories