Bitcoin users have not been shy about using the currency to make large purchases in the past. With the wide range of Bitcoin-friendly retailers on the Internet, it’s become even easier to purchase everything from land to jewelry with the digital currency.
As of January 17, 2016, in Philadelphia, you could buy a condo. The new Bitcoin-friendly condominiums went up for sale in the city’s historic Manayunk district at a price of around $365,000 – or 795 bitcoins, according to Curbed. This makes them the first condos in the city to be sold with Bitcoin users in mind.
A quick look at the Falcon Condominiums website reveals that the building was once home to The Polish Falcons Club. Now, condos sprawl throughout the structure, boasting hardwood flooring and extra-large windows with views of the city. State-of-the-art kitchens and private outdoor terraces round out the list of amenities, but could flexible payment options also be driving a new type of buyer to these properties?
It appears that those who have big money to spend are particularly interested in purchasing property using Bitcoin. In 2014, the Wall Street Journal reported on a Lake Tahoe property that sold for $1.6 million in bitcoin.
BitPremier founder and CEO Alan Silbert was behind the first large real estate transaction involving Bitcoin back in 2014. The transaction totaled around $500,000, according to HousingWire. Since then, Silbert has continued to see the market evolve directly on BitPremier.
“I think we are still too early in Bitcoin’s evolution to see substantial changes to the real estate market, but it has certainly started people thinking about disruption to the space,” said Silbert.
BitPremier, the Bitcoin luxury marketplace, is specifically geared toward consumers who want to spend their bitcoins on fast cars, vacation homes and everything in between (think private islands). Sellers who want to get rid of their luxuries can do so on BitPremier as well, making it a go-to spot on the Internet for all things related to Bitcoin trading.
“For now, the appreciation of bitcoin to date has created some wealthy Bitcoiners who want to diversify into other assets, be it real estate, commodities or whatever,” Silbert continues. “Real estate is seeing the benefit of that trend, as we witnessed first-hand with the villa sale BitPremier brokered between a property developer in Bali and an early Bitcoin adopter in the U.S.”
But Silbert sees the impact of Bitcoin spreading far beyond the real estate market.
“Every major financial institution has one or more people researching Bitcoin or the blockchain. I give everybody the disclaimer that it is a high-risk investment and they should only invest money they can afford to lose. That being said, Bitcoin has come a long way in a short period of time and the future looks very exciting.”
Krystle Vermes is a professional writer, blogger and podcaster with a background in both online and print journalism.