Can You Buy a Home Using "Bitcoin?"

By
Real Estate Agent with GreatWest Realty DRE# 00827565

It isn’t a question I am often asked, “Myrl can I buy a home using “Bitcoin?”

While we hear the term “Bitcoin” more often these past few years, I admit I only had the most rudimentary understanding of what it is, and how this new digital currency works.  

My client’s question brought even more questions to mind: What is “Bitcoin?” How does it work?  Who invented it?  Why?  Is it secure? – Just to name a few!

In delving deeper in attempt to enhance my understanding of the digital currency, “Bitcoin,” I came across interesting facts, but even more questions.  I learned there are NO governments that back “Bitcoin.”  Perhaps, this fact is why some folks find it revolutionary and attractive.   “Bitcoin” is a peer-to-peer currency, which means NO banks.  It allows for anonymous buying of merchandise and other transactions.  

The potential dark side of “Bitcoin” is it provides money laundering capability for drug activity and other illegal operations.  

While “Bitcoin” has been around a few years, in 2013 it was the 6000% increase in value, that spiked attention of investors and others interested in “Bitcoin’s” potential. 

There are several articles about “Bitcoin,” which may help readers enhance their understanding of this interesting digital currency.  They are as follows: “Bitcoin” - Wikipedia  -  “What is Bitcoin?” – CNN Money  -  “Bitcoin Basics” – by Forbes  -  “Senate Takes Look at Bitcoin – by CNN Money”

Do I think “Bitcoin” is here to stay?  I’m very skeptical!  As for buying a house – Possibly!  If the purpose of using “Bitcoin” to buy a house is to do so anonymously, houses have names on titles, so I must wonder what would be the point!

I’m especially interested in what other real estate professionals think of the “Bitcoin” phenomena.  Have you encountered it in transactions?  What was your experience?

 

 

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Rainmaker
2,423,650
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Broker

Stay tuned ... it is coming. People want government out of their business. The mother-load of blockchain is developing in other countries ... cryptcocurrency, I believe, will be a part of our futures. Dare I say, I'd bet money on it?

Aug 27, 2017 07:50 AM #8
Rainmaker
1,700,032
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I now know more about bitcoin than I did yesterday, that is for sure, but I still don't know enough about it to speak intelligently, haha.  It will be interesting to see if this indeed becomes a more common form of currency.

Aug 27, 2017 07:51 AM #9
Ambassador
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Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Bitcoin seems to be very popular with millenials.  My daughter invest every time she gets a paycheck.  It may only be $30 each time but it continues to grow rapidly.  Getting it out can prove challenging.  Hopefully her nest egg doesn't fall out of the nest.

Aug 27, 2017 10:10 AM #10
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I haven't had it happen yet but even Sir Richard Branson is interested in cornering that market and trying to drive out the bad actors.

Aug 27, 2017 10:22 AM #11
Rainmaker
1,880,052
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

I seem to recall a previous blog that you wrote about bitcoin, Myrl. I bet if you google your name and bitcoin, you might find it, LOL. What made you think of bitcoins again this morning?

Aug 27, 2017 10:26 AM #12
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Paul S. Henderson, CRS, REALTOR®,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

I am still trying to wrap my head around the bitcoin phenom Myrl Jeffcoat 

Aug 28, 2017 09:54 PM #13
Rainmaker
1,561,917
Patricia Feager
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

Myrl Jeffcoat - I don't know enough about it but it has a sour taste in my mouth. I just can't comprehend how something like this is going to help the economy grow. Will there be more problems? I need to do more research on this. I remember the first time you blogged about it. I was mystified then; still am! 

Aug 29, 2017 01:29 PM #14
Rainmaker
3,198,735
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Myrl

I would say yes if the buyer excepted the bitcoins in the transaction.

Good luck and success.

Lou Ludwig

Aug 29, 2017 08:06 PM #15
Rainmaker
1,015,583
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Myrl

I believe it is here to stay. On a sour note about virtual currency, a great deal of all Internet fraud is being done so on many of the newer virtual currency sites. I read a story about someone loosing $1M in virtual currency.

On a separate note, I saw news footage about flooding in Cinco Ranch, Katy last night. This is were Bob and Yolanda live. There water was 2-3 feet deep in what I saw. I have tried to contact them several times to no avail. Sure hope they are ok. cheers cvc

Aug 30, 2017 08:37 AM #16
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I have never had anyone ask about it or heard it discussed. It would have to be in California 5 years before it makes it to Tennessee.

Aug 31, 2017 06:10 PM #17
Rainmaker
486,903
Jane Chaulklin-Schott
TEAMCONNECT REALTY - (407) 394-9766 - Orlando, FL
TeamConnect Luxury Homes - Orlando, Florida, 32836

Thank you for the very interesting post on Bitcoin, Myrl Jeffcoat. It has motivated me to research this system more in depth. 

Aug 31, 2017 10:57 PM #18
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Myrl- I tried to follow the press on Bitcoin when it was introduced but I still can't get a handle on it. You posed a very interesting question though.  I loved Debbie Reynolds comment!  

Sep 02, 2017 01:17 PM #19
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

                                    Thanks Myrl Jeffcoat 

Sep 02, 2017 05:23 PM #20
Rainmaker
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Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hi Myrl -- as others have commented, I've read about Bitcoin but have yet to hear that question -- I like your investigative nature.  As far as its impact on the world economy and our world of real estate -- it will be interesting to see how(and if I guess) it develops.  

Sep 03, 2017 05:04 AM #21
Rainmaker
3,892,449
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Myrl.  I am no fan of BitCoin, but I think it is here to stay.  Though, it will remain in the fringes of currency and probably not be available for most mainstream purchases as it is currently run.

Sep 03, 2017 05:11 AM #22
Rainmaker
2,706,335
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Myrl. I think Bitcoins are like pyramid schemes. Just another scam

Sep 03, 2017 07:21 AM #23
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Myrl

Well, I now know so much more than I did. I still struggle with the concept. We'll see if it becomes more mainstream!

Jeff

Sep 03, 2017 07:23 AM #24
Rainmaker
1,393,697
Sandy Padula and Norm Padula, JD, GRI NMLS#1483386
Realty One Group - Carlsbad, CA
Presence, Persistence & Perseverance

Myrl Jeffcoat the entire concept of bitcoin value lies with how much value the next transaction palaces on it. There is no valuation guarantee based on gold reserves, oil, etc. Too unstable for most to consider using.

Sep 03, 2017 07:49 AM #25
Rainmaker
2,424,440
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

I do have a client that uses bit coin. He has to change it to regular currency when buying real estate although i suppose if you had a seller willing to take it, you could use it Myrl Jeffcoat 

Sep 03, 2017 04:44 PM #26
Rainer
3,063
Consuela Timofte
DNS Accountants - Autaugaville, AL
Accounting Anywhere

Hi Myrl,

Thanks for sharing this! 

If you want to know more about Bitcoin read this blog! :)

Bitcoins Tax Compliance & Regulations in UK: Taxes & activities concerning bitcoin. How bitcoins are taxed?  What is Bitcoin mining & more. Get in touch with us to know more about “Bitcoin Tax”.

Oct 24, 2017 11:56 PM #27
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Myrl Jeffcoat

Greater Sacramento Real Estate Agent
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