Tuesday, January 28, 2020

Luxury House in Australia Finally Sold for 457 Bitcoins

Grace Joseph
Freelance Writer, Blogger, and Crypto Enthusiast. Studied Computer Science in University and Undergoing a Masters Degree Programme in Computer Engineering Contact@ reigngracia@gmail.com

From buying two pizzas with 10,000 Bitcoins to buying a house with 457 Bitcoins, who would’ve thought the cryptocurrency will come this far. Bitcoin has found several use cases and one of such is in the real estate sector. A perfect case scenario is a house in Australia that has been sold for $2.4 million in Bitcoin.

Changpeng Zhao Publicizes Live Auctioning of Home

On March 10, Changpeng Zhao, Binance’s CEO tweeted that a house in Australia will be auctioned live and the seller is willing to accept Bitcoin and Binance coin (BNB). The CEO followed it up by making a new tweet on April 8 that the live auction is ongoing and the highest bidder is paying with BNB.

A closer look at the event shows that the auction was closed at $2.4 million and the buyer paid with Bitcoin. Furthermore, the event was held beside a pool in the property. It was graced by cryptocurrency enthusiasts from the U.S., Dubai, Australia, Asia, and other regions.

Home Purchase Poses Risky Scenarios

The purchase of this home poses a risky scenario for both the buyer and the seller. Let’s take the buyer, for instance: handing over 457 BTC which accounts for 0.002176% of Bitcoin’s supply may not be a big deal in 2019. However, a case like the Bitcoin Pizza may likely repeat itself. On May 22, 2010, Laszlo Hanyecz bought two pizzas for 10,000 BTC ($41 at the time) and today, that is equivalent to $52 million.

The other scenario is where the seller has received millions worth of Bitcoin only for the virtual asset’s price to crash. Nevertheless, the latter is less likely to happen and if it did, they’ll be less on the losing end in comparison to the buyer who did not hold on to their asset.

Brock Pierce Hodls Bitcoin While Purchasing New Home

The likes of Brock Pierce have averted such a scenario by buying a house with Bitcoin but without actually handing over their asset. The Hollywood child star actor took a mortgage to purchase a Chapel-turned-home in Amsterdam. He was financed with $1.2 million in cash while his $3 million dollar worth of Bitcoins is held as collateral.

Exchanging cryptocurrencies like Bitcoin for a house is nothing new, given that several homes across the world are being sold for it. Antalya, a real estate firm in March revealed that they had sold 9 homes in Turkey in 2018 for Bitcoin. BTCNN on February 4 also outlined a number of homes around the world whose adverts called for cash as well as Bitcoin.

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