First Blockchain [Cybercurrency] Real Estate Deal Closes in the U.S.

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Look how fast things happen!! 


Just about a month or so ago, many agents where laughing about Bitcoin, blockchain, and other cryptocurrencies, talking about how people won't use it to buy real estate. Hmmm... 


Where did this transaction happen? 


In Burlington, Vermont. 


The first property to be sold this way in the United States. 


It was sold entirely through the blockchain. Completely. 


Etherum was the token used. This puts Vermont on the map. 


Propy is a company in San Francisco. Propy handled the entire transaction including recording of the documents and contracts instead of using the city system. 


Vermont is the first state to allow this kind of transaction and soon coming up are Colorado and Arizona. 


The encryption technology in blockchain is the best available at this time. 


This transaction used the cryptocurrency for the purchase and it was then turnd into the fiat money on the other end. 


The first Bitcoin to Bitcoin transaction in the United States was when Michael Komaransky sold his Miami mansion for 455 Bitcoin which was the most expensive Bitcoin real estate transaction to date. 


While most people will still not do a cybercurrency real estate transaction, it is here, and it will be here to stay. 


The different tokens will fail and others will rise. Etherum is very stable. Blockchain is here to stay and evolve. 


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Ellen Caruso
Daniel Gale Sotheby's International Realty - Glen Head, NY

I’m hearing more and more of this but still don’t understand it fully. I too need to study and prepare for this new wave of Bitcoin!

Mar 13, 2018 07:02 PM #20
Kirk Knight
Alain Pinel Realtors - Alameda, CA

There is confusion between Blockchain and Cryptocurrency  in this comment that is extremely dangerous to your commission check - not to mention your client's money.

There is a clear distinction between what is possible and what is sensible. It has long been possible to complete real estate transactions with cryptocurrencies. Unless you are a very wealthy speculator who can afford a loss of 10-50% of the total value of the transation (or of your commission), it is not sensible to do so. 

Blockchain is merely a method of recording the details of a transaction. The key distinction is that unlike your county recorder, or the local title company, eventually the Blockchain data could be accessible by everyone but thanks to robust encryption it would be near impossible to corrupt the data.

Blockchain could lead to a reduction in costs but there will be legacy problems - who will pay to digitize the old documents, plat maps, hand-drawn easements, etc. necessary to provide chain of title?  One  might suggest that this ambiguity will be a magnet for lawyers.

Secondly, neither bitcoin nor etherium are fiat currencies, as they are not legal tender. At this time they must be converted to legal tender - e.g. USD (US dollars) to complete a transaction.


"Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity. "   The US government has not declared any cryptocurrency to be legal tender, they are commodities.

Neither bitcoin nor etherium are designed for nor should they be used for transactions.  They are highly volatile commodities whose value changes radically. A recent example had the value of Etherium dropping 25% from end of business on Friday 2/2/18 until start of business on Monday 2/5/18. Imagine your client had a contract on Friday denomitated in Etherium rather than USD  but it didn't close until Monday. What did the property sell for? Who eats the 25% loss in value? Will your commission be 25% lower?

There are some cryptocurrencies designed for these kinds of transactions, where the value of the currency is purposefully designed for low volatility. These aren't as popular because they don't satisfy the speculative frenzy.

I have cofounded an online financial services company that was acquired by an NYSE traded financial services giant. Several of my friends, past cofounders and coworkers are very active in fintech startups related to cryptocurrency and blockchain technology. We frequently discuss current trends. Even they have no idea what the value of a cryptocurrency will be 10 minutes into the future.

Mar 13, 2018 07:07 PM #21
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

The whole idea of cryptocurrency boggles my mind. Since it's not legal tender, why should we pay attention to it?

Mar 13, 2018 07:48 PM #22
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

I'm having a hard time keeping up with all these new terms!  Very interesting news indeed.

Mar 13, 2018 08:10 PM #23
Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

I think the current stuff is a fad, which is why the alleged Bitcoin millionaires aren't cashing in. There was a Bitcoin conference recently that accepted all forms of payment...except Bitcoin!

We will eventually go to an electronic pay system, and a one-world currency, but I don't think it will happen for another 25 years or more.

Mar 13, 2018 08:36 PM #24
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Katerina, in all fairness, this is not going anywhere, unless there are many fools out there, like in the 1960's when people bought land on the moon. I wonder how their investment is doing??? Then to add insult to injury we have New Mexico that was selling land as "Deming Ranchets" I inherited two acres from my parents would you like to buy it and you could be the #2 with Crypto Currency I will gladly sell it to you for $200k and even if I loose out on the Bitcoin and only end up with $50k I will be happy:))Endre

Mar 13, 2018 10:04 PM #25
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

We can now add user beware to buyer beware of using bitcoin in any real estate or big-ticket transaction. I agree with Endre, #25 completely on this issue. 

Mar 13, 2018 10:43 PM #26
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

I have been following the validation of Blockchain for 2 years and this will surely help many industries going forward.

Mar 14, 2018 07:04 AM #27
Diana Dahlberg
1 MONTH REALTY - Kenosha, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

This is an interesting topic and something we need to continue watching as this subject will not go away!  This is no small change!

Mar 14, 2018 07:35 AM #28
Warren Schutt
Warren Schutt Real Estate - Danbury, CT
Helping People with Their Moves for over 36 Years

Until crypto currency values' stabilize, I don't see how sales can be done using them. When a coin can drop in value by as much as 50% in less than a month, a seller would be crazy to take that kind of risk. 

Mar 14, 2018 08:05 AM #29
Jim Paulson
Progressive Realty (Boise Idaho) - Boise, ID

The only constant in this world is change.

I believe using cryptocurrency is really not much different than using stocks to buy something.  If you agree that at a given point of time the Bitcoin/Etherum/Stock is worth X and agree to the volitlity, it is ok.  It can go up or down in value so you have to pre-address what if ....

Blockchain is going to gain momentum, but until everyone buys in, it won't be as universal as people think.  For example, the city/county in Vermont may not recognize the recording done via BlockChain (yet).

Just my $0.02 worth (as of 12:03 Mountain Time 3/14/2018) aka 0.0000024 Bitcoin or 3.249443532795009e-5 Etherum. Only time will tell if this opinion is worth more or less than the original $0.02 opinion expressed above.  

Mar 14, 2018 11:19 AM #30
Anna Banana Kruchten CRB, CRS, Broker
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

Katerina I have found this a most intersting topic to explore this past couple of months. I had no idea of block chain and of course I had to find out more. I kind of get the idea, not all the way but closer.  I had no idea that AZ was going to be making this kind of transactions legal - again very interesting.

Mar 14, 2018 11:43 AM #31
Anna Banana Kruchten CRB, CRS, Broker
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!


                                                  Featured in BananaTude


Mar 14, 2018 11:45 AM #32
Mary Jo Quay
Remax Results - Edina, MN

We should all know basics of cryptocurrencies, they will evolve. It's been a long time since anyone dragged a bag of gold coins to pay for anything, and it's been a trillion dollars ago since the US dollar was gold backed. Credit cards, paypal, wire transfers are not real money, it makes sense that we'll evolve to new currencies.  Or, we could exchange a boat load of tuna for a car. 

Mar 14, 2018 07:55 PM #33
Anne Edwards Johnson
JP and Associates - Austin, TX
Austin Realtor | HookemhomesATX (512)917-5260

The 1st Bitcoin Real Estate transaction in Texas was brokered by a friend of mine. Right here in Austin.


Mar 15, 2018 11:55 AM #34
Lore Lingner
Monterey Coast Realty - Carmel, CA
Personal Care And High Tech Tools

I recently saw where a Realtor of two or three years recently sold a home in the L.A. area - there was a TV news interview.  In that case, I believe Bitcoin was converted to cash for the closing.


While looking for that information, I came across this:

Miami Mansion sold for Bitcoin

Michael Komaransky initially listed his seven-bedroom home in Miami’s wealthy Ponce Davis neighborhood for 6.5 million dollars payable in either cash or Bitcoin in August 2017.

He told the Miami Herald at the time that he wanted to take Bitcoin in order ‘to show people that real-world goods and services are payable in Bitcoin and Bitcoin Cash.’ The sale officially closed on February, 1 for 455 Bitcoin worth 6 million dollars at the time.

The transaction was made completely in Bitcoin, meaning there was no conversion to US dollars, making it not only the most expensive real estate transaction but also only the second pure Bitcoin real estate sale in Florida.

According to Pulse Real Estate, the buyer is also an early Bitcoin investor who like  Mr. Karmonsky wanted to demonstrate that Bitcoin is a real currency that can be used to pay for most anything.

Mar 15, 2018 01:16 PM #35
Lore Lingner
Monterey Coast Realty - Carmel, CA
Personal Care And High Tech Tools

Cryptocurrency is here to stay and growing as large firms are adopting the use.  From my reading, Bitcoin was the first and new currencies are coming along, such as Ethereum that may overtake Bitcoin.  Some predict Cardano to be the third phase.  Fun to watch what is happening.  There are some excellent "lessons" about cryptocurrency on YouTube.  Great way to learn.

Mar 15, 2018 01:28 PM #36
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Katerina,

No need for foreigners to bring suitcases of cash any longer then, eh?

Mar 15, 2018 08:12 PM #37
David Martin
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality

I had read a few other posts regarding recent real estate transactions using the crypto currencies Katerina Gasset I believe there was a luxury sale recently as far as I know so far there haven't been any of these in my area of N. Virginia. But I am certain that will happen eventually. 

Mar 16, 2018 08:52 AM #38
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

One of my buyers cashed in his Bitcoin for an earnest money deposit on new construction.  Until then I hadn't investigated it at all.  Interesting "market" as I have a background in the stockmarket.  It will be interesting to see what happens in the future, especially since I'm in Arizona :)

Mar 18, 2018 08:26 PM #39
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