Bitcoin Buys a $3.2M House

By
Real Estate Broker/Owner with Edge Real Estate Agency CA BRE #01880469

It's something new for all of us here in Manhattan Beach, California.

A buyer has just closed a purchase of a home with more than $3 million worth of Bitcoin.

I wrote up the whole story for this blog post on my MB Confidential blog. Check it out!

I really felt for the agent. I mean, you know that you should probably understand Bitcoin better. I aspire to understand it better, also. But it seems like recreational learning we might get to "some day."

Imagine how the sellers of this home and their agents felt. They got this offer and, overnight, they had to figure out what the heck Bitcoin is, figure out if the offer was for real, and scramble to find a way to convert the Bitcoin into cold, hard cash.

True story: The proof of funds, for more than $3 million, was an App. The buyer brought his mobile device in, opened up a Bitcoin "cyberwallet" app and showed everyone the amount of Bitcoin in his account. Can you say, "unconventional"?

The sellers of this property – a new construction/spec home in East Manhattan Beach – theoretically had the option to take payment fully in Bitcoin. They chose U.S. dollars.

When you read my blog post on the transaction, you can decide if they did the right thing!

Comments (6)

William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I know very little about bicoin. So I would be seeing red flags with this

Feb 28, 2017 03:03 PM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Technology is advancing so quickly when it coes to forms of payment. However in this situation I would need a trustworthy mentor before I would feel comfortabe with this type of payment.

Feb 28, 2017 03:13 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Dave, like Debe, would need some assistance from someone knowing more about bitcoins.  I have no knowledge on this.

Feb 28, 2017 04:26 PM
Jerry Lucas
ABC Legal Docs LLC - Colorado Springs, CO
Mobile Notary Colorado Springs, CO Notary Training

Criminals are using ransomware to encrypt data files and extort ransom payments from computer users to unlock the encrypted files. Criminals are using Bitcoins because it is hard to trace by law enforcement.

Buying real estate with Bitcoins would be a red flag for me. I wonder if title companies have any special rules to follow for Bitcoin transactions.

Mar 01, 2017 07:22 AM
Jerry Lucas
ABC Legal Docs LLC - Colorado Springs, CO
Mobile Notary Colorado Springs, CO Notary Training

After doing some research, reading, and watching YouTube videos, I learned the basics of Bitcoin, blockchain technology and cryptocurrency. There is a fast growing interest in Bitcoin and blockchain and I found there are several local blockchain groups with weekly and monthly meetings.  Look on Meetup.com.

To get started, I installed a secure Bitcoin wallet, and added a plugin to accept payments in Bitcoin, Bitcoin Cash, Litecoin and Dash on my WordPress website. I added my business listing to a Bitcoin directory, maybe the first notary in Colorado to accept Bitcoin. There is a growing list of small and large businesses that accept Bitcoin. Some offer discounts or customer reward points in Bitcoin.

I will do small value buy and sell transactions for a while and networking at local group meetings to learn tips and risks to avoid.

Bitcoin is first generation technology. Lessons learned from Bicoin improved the second generation technology, used in Ethereum, which also includes smart contracts.

Jun 19, 2018 05:30 PM
Andron Silver

When I am near the Immediate Edge I think that people exaggerate with anything and not even tell you how long the bitcoin was on the bitcoin revolution page but it is one of those things that one does not reach because one always ends up resting on his laurels.

Oct 05, 2021 07:03 AM