If you have been paying attention to the latest financial news, you probably have heard of Bitcoin. This type of currency has been getting a lot of media attention lately, largely due to the fact that it has seen a dramatic increase in its value during the past year. A lot of investors are taking a hard look at whether or not Bitcoin is a smart investment. In this article, I’d like to discuss the possibility of selling your home using Bitcoin.
As it turns out, someone actually has listed their home for sale with Bitcoin as the only payment option. This home, which is located in Perth Hills in Western Australia, is the first one that I know of that has been listed for sale with Bitcoin as the only available method of payment.
I found the concept of selling a home using Bitcoin quite interesting. Two primary questions came to mind. The first is whether or not you actually could sell a home using Bitcoin. The second is whether or not you should.
A Closer Look At Bitcoin
Bitcoin can be a little bit hard to understand. In essence, it is a digital currency. That means that it is a currency that was created online. Unlike other types of currency, it is not centralized. These types of currency, which are known as cryptocurrency, can be exchanged between two parties without the need for a bank. This can help reduce the fees associated with transactions.
One of the interesting things about Bitcoin is that it is extremely stable. The way that the market is designed, it is impossible to infiltrate the market with a large number of additional Bitcoin. As a result, the currency itself usually doesn’t experience huge fluctuations.
As of right now, more than a billion dollars’ worth of Bitcoin currency is in circulation. This money flows through countless exchanges located throughout the world. You can buy the currency using actual money or you can exchange existing bitcoins that you own for money in whatever currency you use.
Hopefully, this gives you a little bit better understanding of how Bitcoin works and what it is. You can find a lot more information on the Internet. Videos on YouTube can be particularly beneficial when learning more about this cryptocurrency.
Bitcoin Is Not Without Risk
According to real estate market place Asset Column one of the most important things that you need to know about Bitcoin is that it can be risky. The exchange rates associated with Bitcoin can fluctuate quite a bit. Although the currency has historically been quite stable, the past year has been a little bit different. The currency itself has jumped significantly in value.
At first glance, this may seem like a good thing. After all, who doesn’t want their investment to increase in value over time? The problem is, what goes up usually comes back down. That means that you can’t just count on the currency continuing to increase in value. One example of this is when the government of China shuttered many of the exchanges that were used for trading Bitcoin. Within very little time, the exchange rate plummeted.
Although these types of situations are rare, they do happen. You need to be aware of the risk if you plan on selling your home using Bitcoin. Theft is another common problem with Bitcoin. In fact, someone just lost $470 million worth of Bitcoin in Mount Gox not too long ago. Imagine how devastating that would be.
I also heard about an individual who accidentally threw away a hard drive that contained more than $14 million worth of bitcoin. I bet that guy is still kicking himself today for making such a costly mistake. There is always the risk of losing Bitcoin if something happens to your hard drive or if your computer breaks down. You need to take steps to protect your investment so that you don’t wind up losing it all.
Hackers can also be a threat to Bitcoin. Some of the exchanges have been targeted by hackers in the past. It makes sense when you think about it. After all, it would be an easy way for a hacker to gain access to money. Stealing bitcoins is one of the fastest ways to get them without having to work for them themselves. Hacking is a real danger anytime you are dealing with a digital currency.
Is It Worth Using Bitcoin To Sell Your Home?
Now that you have a better idea of the risks associated with Bitcoin, it is time to talk about whether or not it is a good idea to use them to sell your home. I guess the main question that you should be asking is why you would choose to use Bitcoin in the first place rather than selling your house using a traditional currency.
One reason why you might consider it is because it would get a lot of media attention. However, even if your house gets talked about in the press, it may not help you find a buyer for the property.
One of the problems of going this route is that it could be a real turnoff for a lot of buyers. Think about how you would feel if you were looking at real estate and found the perfect home. Then, in the description, you saw that the seller would only take Bitcoin for payment.
At that point, you would probably just keep looking rather than going through the hassle of figuring out what Bitcoin is and how to get it. Because most people aren’t familiar with this currency, it can seem quite risky. As a result, they are likely to take their business somewhere else.
Because Bitcoin is not as well-known as traditional currency, it is probably not the best choice when it comes to listing a home for sale. People need to feel confident when they are making such a large purchase. You should avoid anything that could make them feel like they are taking a risk.
A good compromise might be to accept Bitcoin for payment along with traditional currency. This still might generate a little bit of buzz in the media but still makes it possible for everyday people to buy your home even if they aren’t familiar with how Bitcoin works. Although it is technically possible to sell your house with Bitcoin, it is probably a bad idea to have that as your only payment option. It could wind up alienating a lot of people who may otherwise have been interested in buying your home.