You’d be amazed at what you can buy with Bitcoin. One can buy everything from beer to butt lifts with cryptocurrency these days.
What if you’re looking to make a huge purchase, however?
Probably the biggest things any of us buy in our lifetimes are our homes. But can you buy a house with Bitcoin?
Read on as we find out.
What is Bitcoin?
Bitcoin is the original cryptocurrency. It is a form of currency that has no physical money.
Instead, balances are held on a public digital ledger known as the blockchain. Since everyone can see this ledger, no one can try to cheat the system by changing their own balance.
Bitcoin can be bought or sold just like any other currency, but it can also be “mined.” This is when computers solve complex computational puzzles to find a new block, which gets added to the blockchain. Since part of the process helps verify transaction records, people who mine are rewarded with some Bitcoins for their efforts.
Since Bitcoin first hit the scene, a whole host of new cryptocurrencies have emerged. Most use similar principles, but each has its own specific features that set it aside from the others.
Can You Use Bitcoin to Buy a House?
As was already mentioned, you can use cryptocurrency to buy a huge range of things these days. And the answer is: yes, you can buy a house with Bitcoin. There are several ways to do so.
Real Estate Agent
One of the simplest ways to buy a house with Bitcoin is to find a real estate agent who accepts cryptocurrencies.
There are more and more of these realtors cropping up every day. Once you have found one, the process of buying your house can proceed almost the same as with any other house purchase.
The only difference is that when it comes time to transfer your funds to the real estate company, you transfer Bitcoin rather than cash.
If you can’t find a realtor who accepts cryptocurrency, you can always go for a private sale.
Obviously, this depends on you finding a seller who is willing to accept this form of payment. If you do so, you’ll be able to transfer the funds from your digital wallet to theirs. You’ll still need to get the lawyers on the case to ensure that all the paperwork is above board; you don’t want to transfer all your Bitcoin only to find you don’t own the property.
With cryptocurrencies growing in mainstream popularity, this option is likely to become more and more prevalent.
Most of us buy a home with a mortgage. Can you do the equivalent with cryptocurrency?
Well, in a way. It’s possible to get a cryptocurrency loan in the same way you would get a standard loan. You’ll still need to be able to put up some collateral and have the means to afford the repayments, but it’s possible to get a crypto loan in as little as three minutes.
You can then use that money to pay for a house or anything else for that matter.
If you already own some crypto, you can use that cryptocurrency as collateral for taking out a loan, too, allowing you to put your cryptocurrency to work for you.
Convert To Cash
If all else fails, don’t forget that cryptocurrency can be bought or sold, just like any other currency. You can sell some of your Bitcoin, for example, and use the cash to buy your home.
A word of warning on this front: Some real estate agents won’t accept cash that has come from cryptocurrency due to concerns over money laundering. You’ll need to check with the realtor whether they accept cash from crypto if you’re going the route of using a real estate agent.
Advantages of Buying a House With Bitcoin
If you can convert Bitcoin to cash, why would you want to use it to buy your house?
Well, there are several advantages. These include:
- A faster purchase with no middle man
- You can remain anonymous
- Lower fees
- Possible discount in the sale price
- Some sellers may only accept cryptocurrency
Disadvantages of Buying a House With Bitcoin
Of course, nothing is perfect. There are also some downsides to using Bitcoin or other cryptocurrencies when buying a house.
These include the following:
- It’s harder to agree on a price due to fluctuations in cryptocurrency value
- Many realtors won’t accept it
- Many private buyers won’t accept it
- It can be more complex to work out sale fees
However, as cryptocurrency becomes more and more mainstream, it should be the case that many of these disadvantages will lessen over time.
So, Can You Buy a House With Bitcoin?
Can you buy a house with Bitcoin? Now you know the answer, all that’s left is for you to find the home you want to buy!
If you’re looking for a cryptocurrency loan, we’re here to help. You can get crypto loans through us in under three minutes, and we offer the lowest collateral ratio in the industry for crypto loans. Due to the nature of Bitcoin, our loans are in ETH or DAI, but the same principles apply if you’re looking to buy a home with any cryptocurrency.
If you already own some cryptocurrency, you can also lend it out and earn interest on your crypto.
Sound good? Try out our app today.