First Real Estate Company in Spain Using Bitcoin For Sales
A real estate company in Spain called Mister Piso used Bitcoin as legal tender to sell the first piece of real estate. The company hopes that using cryptocurrencies will revitalize the housing sector and accelerate sales.
Bitcoin and similar cryptocurrencies have steadily gained popularity since its inception around 2009, but why does this appeal to businesses or the consumer?
Since its launch in 2009, bitcoin and other cryptocurrencies have gained popularity. Bitcoin was initially created as an alternative to the current financial system for a purpose to bypass corporative banks and other regulatory bodies. Bitcoin was created as a peer-to-peer platform and there is no need of any central body to keep the information of performed transactions.
A Volatile Market
The deal of selling the apartment closed for 40 bitcoins. Currently, one bitcoin token is worth about $11,800, which means the real estate was sold for approximately $ 470,000.
Bitcoin does not have a fixed rate, however, and has experienced large swings in price over the past year. This causes Mister Piso to take on some risk when accepting Bitcoin, but this risk is calculated. Although the currency has the potential to drop significantly overnight, it should be remembered that the value of Bitcoin rose almost 1,500% over the course of the past year.
Over the past year, Bitcoin has experienced large swings in price. That’s why Mister Piso took a risk on accepting bitcoin, but the risk is calculated. You should remember, that the value of Bitcoin rose almost 1,500% over the course of the past year. However, it has a potential to drop in big rates in a night.
The company is fully embracing the risk associated with the currencies though, already announcing they have a second piece of property for sale in Bitcoin.
The manager of Mister Piso’s Tarragona office, Gerard Platero, elaborated on the position, stating,
It’s a much cleaner transaction, and you do not have to have cash in the moment, you can have this bitcoin wallet and have something that is not tangible. If I saw a flat and liked it, instead of paying and signing and having to go to a notary, I could make the transaction very quickly in the moment, according to the value of bitcoin, and all parties are happy.
He explained that this way of transactions can help property owners to reduce additional costs paid for commissions.