Virtual currency Bitcoin, also referred to as the alternative currency, is fast becoming a means of payment. The latest sector to have lapped it up for payment is the real estate in the U.S., particularly that in Florida. This is mainly because Bitcoin is offering foreign investors means to escape currency controls at home and also the U.S. economic sanctions.
By the end of 2017, the digital currency was used to pay for about 75 properties put up for sale, particularly in South Florida and California, according to the findings of the real estate firm Redfin.
In fact, homes for sale in Miami area actually flash a board saying “Bitcoin accepted” these days.
One seller has even gone to the extent of saying that he would only accept Bitcoin – precisely 33 of them – for his half-million-dollar worth condo in the downtown area of the metropolis of Florida.
Volatility of Bitcoin Poses Challenge
However, many agents are cautious on account of its high volatility.
Last year itself, Bitcoin surged over 14-fold to attain a value of US$19,000 a piece on December 16. There have been occasional steep plunge in its value too because of certain macro-fundamentals such as governments in various regulating it strictly.
Still, such transactions are seeing traction since they are useful for foreigners keen on investing in the U.S. real estate sector, but find it difficult to do so owing to the restrictions placed on the amount of money that can be transferred abroad via the banking system. Bitcoin allows them to bypass such restrictions. It lets them dodge US economic sanctions too.