So-called Bitcoin millionaires who’ve made a fortune from buying up the cryptocurrency in its early days are now looking to cash out by buying up luxury real estate.
A report from Realtor.com says that Bitcoin trader Mike Komaranksy is listing his 9,500 square foot Miami mansion for a price of 1,400 BTC, which is equivalent to $6.5 million. In addition, Komaranksy also says he’ll accept Zcash, which is another kind of cryptocurrency based on Bitcoin, called an Altcoin.
Komaransky is listing the home after buying it in 2014 for $4.6 million.
For those who aren’t familiar with Bitcoin, it’s a decentralized currency that was first created in 2009, that’s sold and bought over the Internet. The price of Bitcoin is quite volatile, with 1 BTC worth less than a dollar when the currency was introduced. Today, at the time of writing, a single coin is valued at north of $4,500, though its value versus the U.S. dollar has been known to fluctuate by more than $500 in a single 24-hour period.
Quite a few homes across the world are being sold for Bitcoin. For example in Dubai, developers behind a new 2.4 million square foot luxury development have indicated they’ll accept BTC.
“The tax issues are really straightforward; I don’t see any issues with that,” Komaransky told Realtor.com about the seven-bedroom, 8.5-bath Miami home he’s listed for sale in Bitcoin. “Legal issues, I don’t see a problem. The actual transfer of value in the form of Bitcoins? It may actually be less risky to make a transaction with bitcoins than cash. Due to their irreversible and instantaneous nature, make the process much quicker. And once you have the coins in your possession, it’s a done deal, and anyone can see it because it’s on the blockchain.”
Carol Cassis and Stephan Burke, who are the listing agents for the property, said they’ve already spoken with two investors who’re interested in buying it with this type currency.
“For people who bought bitcoin years ago, they’ve seen its value increase a lot,” Burke said. “Buying a house with that investment is pretty interesting for them.”