Bitcoin had a strong bull run in 2017, achieving an All-Time High at $20,000 in December and then plummeting at $5,800 in February 2019 and till now is trading between $6,000 – $8,500.
Cryptocurrencies aren’t only a risky trading opportunity which made many millionaires in the last years. It also caused considerable losses to many people who bought the top. But Bitcoin is also currency to buy things. There is a considerable number of businesses that accept Bitcoin as a method of payment.
Between many things you can buy using Bitcoin, You can also buy a house with Bitcoin. The only thing you need to do this is that booth parts the seller and buyer agree to exchange bitcoin for the house. Another option to do that even if the seller does not want to receive bitcoins is using BitPay, which converts bitcoins immediately in dollars. Bitpay also handled a big property sale in 2014 for 2,739 bitcoins or 1.6 million dollars at the time. I wonder if the seller has any regrets now! Bitcoin with its deflationary nature does not incentivize investing or spending unlike normal Fiat which inflates over time and people tend to invest instead of holding it.
Finding properties that are sold with cryptocurrency is easy using Sites like Open Listings. When you search use bitcoin on the search bar to find properties that can be purchased by Bitcoin. Cryptohome is another website when you can find properties that are sold by bitcoin. Since the concept is new many newcomers in the cryptocurrency world are not confident because of the lack of regulations and the uncertainty about the taxes related to cryptocurrency transactions.
How it is Bitcoin Taxed?
In the U.S. the IRS considers Bitcoin as a property and every transaction should be calculated as capital gain according to a bitcoin consultant Jake Bryan, Here it is a service that could help you file your income taxes on Bitcoin.
On the other side using Bitcoin to buy properties you must remember that once the transaction is confirmed, cannot be reversed and in case of litigation booth parts should go to court and find a solution. A good option would be to find escrow companies that can make the middleman for the transaction to go smoothly and to avoid any part scams the other part.
However in conclusion, if someone wants to buy a house with bitcoin there are ways to do that.