A New York mansion listed for sale in October 2018 is also available for purchase with Bitcoin. This novel real estate offering highlights ongoing public interest in cryptocurrency investments and suggests that similar opportunities will likely increase in the coming years.
New York mansion on the market
In New York, the chairman of R.G. Niederhoffer Capital Management has put his renovated mansion up for sale after five years of refurbishment. What makes the listing unusual is that the property can be bought in dollars or in Bitcoins (BTC). The price is $15.9 million USD or the Bitcoin equivalent. So far, no prospective buyer has emerged.
Millionaire Roy Niederhoffer is a strong proponent of Bitcoin and considers it a currency of the future: “I truly believe in Bitcoin. I’m very optimistic about it and want to acquire more.” However, he will require that closing costs and purchase-related fees be paid in fiat currency. Located in Manhattan near Riverside Park with views over the Hudson River, the property is undeniably attractive. Whether it will attract a buyer paying in Bitcoin remains to be seen, but other recent real estate listings suggest such transactions are becoming more common.
Bitcoin slowly moves into real estate
After understandable initial hesitation, the real estate market is increasingly opening up to purchases in Bitcoin. This summer, for example, a 16th-century Roman manor was listed for $42 million or the cryptocurrency equivalent. In July, a Texas home was offered for sale in BTC. For now, Bitcoin transactions are mostly associated with large homes and mansions, but broader adoption is expected.
Cryptocurrencies like Bitcoin offer several advantages when transferring large sums. First, they can bypass fees typically charged by banks and some verification services. Second, blockchain traceability makes the payment secure and helps reduce fraud risk. Some real estate professionals, such as Stephan Burke, predict that virtual currencies could account for 20 to 30% of property sales within five years.
BTC as an alternative to traditional payment systems
For many investors, Bitcoin represents an alternative that can circumvent government-imposed transfer limits. In countries with strict controls on money movement, such as China, Bitcoin can enable real estate investment without being subject to conventional remittance restrictions.
Virtual currencies may also attract demographics less inclined to purchase property through traditional channels—particularly Generation Y. A 2018 survey indicated that American millennials favored Bitcoin over other assets. As a result, the number of crypto-based real estate investment opportunities is likely to grow.