Digital-Currency Milestone: Somebody Just Bought A House With Bitcoin

Tyler Durden's picture

A day after Bridgewater Associates Founder Ray Dalio claimed that bitcoin was "definitely in a bubble" partly because he said the digital currency was too difficult to spend, CoinTelegraph is reporting that the first-ever bitcoin-only real-estate transaction has been completed in Texas.

The transaction "illustrates crypto's potential to transform how financial transactions are conducted," according to Futurism.com.

The Texas-based real estate brokerage firm Kuper Sotheby’s International Realty, the firm that reperesented the buyer, declined to disclose the number of bitcoins that were exchanged for the home. Futurism.com noted the ease with which the transaction was conducted. "The buyer simply transferred the bitcoin to the seller, who then converted it into US dollars."

“In all of my 33 years of closing transactions, I honestly couldn’t have expected something so unique to go so smoothly,” Kuper Sotheby’s Sheryl Lowe, the buyer’s agent, said in a press release. “In a matter of 10 minutes, the bitcoin was changed to U.S. dollars and the deal was done!”

Located in the central part of Austin, the property is just a few miles away from downtown.

Futurism opines that the real estate transaction is "further proof" that bitcoin isn’t “a fraud." Instead, the transaction is another example of the increasing acceptance of cryptocurrencies, which are poised to revolutionize a variety of industries beyond finance, from transportation to entertainment to politics.

According to Futurism, the home has grand entertaining areas, a master suite, and a chef-worthy kitchen. Sheryl Lowe of Kuper Sotheby’s that she “honestly couldn’t have expected something so unique to go so smoothly.” She said the seller was able to convert the bitcoin into US dollars in a matter of minutes.

“In a matter of 10 minutes, the Bitcoin was changed to US Dollars and the deal was done!” she said in a statement.

News of the sale comes about a week after one UK company focused on building affordable housing for young professionals said it would begin accepting bitcoin for down payments on its properties.

Hear that, Ray?

* * *

Bitcoin has largely recovered from a selloff earlier in the month that was triggered by news that Chinese authorities were cracking down on local exchanges after banning initial coin offerings. The selloff worsened after JP Morgan Chase & CO CEO Jamie Dimon called bitcoin a "fraud" and said he would fire any traders caught speculating in it. One coin was trading at $4,006 on CoinDesk Wednesday morning.

Earlier today, we noted that the price of a share of the Swiss National Bank climbed back above the price of one bitcoin on Wednesday thanks to a 13% jump. The bitcoin price, meanwhile, was largely flat.

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tmosley's picture

Tyler, why don't you ban all these antisemitic bastids who is buying these cryptos!!!???

VD's picture

bc tylerz want to:

 

a. lose even more views

b. see you bankrupt your mom worse than u did with silver

c. dont give a shit about blatant discrimination

d. all of the above

 

like i said, get a life, get out your mom's basement, stop robbing her and-- well-- all of that will happen when you get hosed again.

Doña K's picture

Since it's so difficult to get cash out of bitcoin, Someone got a fool to buy his house wih Bitcoin. Next thing, he may sell it for cash

VD's picture

a couple of idiots transact, and all of a sudden Dalio's wrong and it's not a ponzi.

overbet's picture

“In a matter of 10 minutes, the Bitcoin was changed to US Dollars and the deal was done!” she said in a statement.

 

How long to convert gold?

abyssinian's picture

trying to call Peter Schiff to cash out some gold coin, his number in Pureto Rico isn't working... then someone told me PR is 100% out of power and the streets are flooded... Hope Peter is ok, hold on to those gold bars as anchor during the hurricane I hope. 

aurum4040's picture

Exactly. And if you had physical gold, HA, let's just say your closing costs would jump because you wouldn't meet the closing deadline set forth in the sales agreement. Schiff yeah, how about Sprott? Same shit. But, if you had Poloniex XAU coins, you could sell them, convert to BTC, then transfer to owner who could then cash out into USD or EUR or JPY, or CNY, or...Hmm...Dalio is just trying to game the system. His desk is buying his clients fraud coins hand over fist. Those that actually listen to his lies. Desperate people do desperate things. Dalio included. 

Kotzbomber747's picture

“In a matter of 10 minutes, the Bitcoin was changed to US Dollars and the deal was done!” she said in a statement.”

Translation: it’s just pro-BTC propaganda, quickly convert it to dollars before BTC crashes again!

P.s. since the seller immediately converted his BTC’s to USD, next time just sell it for USD straight away and let the buyer take on the risk of BTC volatility?

@abyssinian: if PR is without power, good luck with any BTC transactions! At least gold holds its value and spending capabilities without even electricity.

aurum4040's picture

Days and you get one hell of a 'haircut' whether you need it or not. Somebody has to pay for the inconvenience of testing the AU for legitimacy, weighing it, transporting it with security, then selling it to someone who also has to go through the same exact inconvenient process. If not selling it, then storing it for yet another haircut in the process. 

tmosley's picture

Hahaha, you cucks will just say ANYTHING that sounds like an attack, won't you?

Raffie's picture

The haters are just the Progressive Libtards when they hear President Trump, the meer metion of cryptos send them into mind numbing rage. 

Bay of Pigs's picture

No. He is a fucking prick. That's why people dont like him.

TruthHammer's picture

TommyBoy is just a mad kid trying to act like a man.

BeanusCountus's picture

Hey, Tom. We get it. You are a fan. Others are not. Don't take it so f'n personally. We will see how it works out. And NOBODY knows how it will for sure. Hope you make $$M's. If it does go your way, the stress is gonna kill ya before you can spend it.

Best, BC

tmosley's picture

>Don't take people trying to silence you personally

No.

gn28's picture

"The buyer simply transferred the bitcoin to the seller, who then converted it into US dollars."

so the seller actually wanted USD, he/she didn't really keep the bitcoin as a store of value... what a b/s title. The buyer could have just as well sold the bitcoin and given the guy his $

JustUsChickensHere's picture

Not quite. The key here is the near instant settlement of the BTC, and the very quick conversion to the USD that the seller wanted.  I am guessing the purchaser was not a US citizen or did not use the same bank as the seller. In that case, using the legacy banking system would have taken a lot longer for a USD settlemnt cheque/transfer from the purchaser to be cleared.

Maybe the purchaser did not even have his funds in BTC ... maybe did a (rapid) purchase of BTC... then the transaction described in the article.  BTC just became the rapid settlement component - faster than the legacy banking system can manage.

Quite a useful function - and that is what Blythe Master and others in the banking world are attacted by.

bamawatson's picture

street address is 0101010101

abyssinian's picture

So in  few years when Bitcoins are trading for $50,000 each, the buyer will realize the paid $10+ millions for the little house.

robertocarlos's picture

That fucking pizza is haunting me.

BustainMovealota's picture

"..who then converted it into US dollars." Or, kept it in Bitcoins, which would be a smart move.  

VD's picture

yeah, sold his $80k shack, held his Tulipcoins and ended up homeless. smart.

Clock Crasher's picture

I'll be impressed when someone buys a private island with Bitcoin and starts a libertarian country.

tmosley's picture

Why would someone want to create a country that would fill up instantly with cucks?

robertocarlos's picture

Has the government siezed the house yet as the proceeds of crime?

WillyGroper's picture

nah...imran awan was they buyer.

Clock Crasher's picture

“the Bitcoin was changed to US Dollars and the deal was done!”

So the house was sold for dollars?

TuPhat's picture

The house wasn't actually sold.  Everyone who has bought a house knows it takes hours of paperwork.  10 minutes and done, means it was BS.

VD's picture

moar fake news on fake coinz?

 

 

Ikiru's picture

She was talking about the financial part of the transaction dipshit. She didn't say, "Hooray, no more paperwork!"

BallAndChained's picture

If he really converted to dollars, that means bitcon was dumped onto the market and helped to drive down the bitcon price.

When people start dumping houses worth of bitcon onto the market, that means the insiders are cashing out. The gig is up. The musical chairs are running out.

BallAndChained's picture

There's the rub. When people actually start using bitcon as a currency and the merchants convert the bitcon they receive into dollars, dumping the bitcon onto the market, that would drive down the price of bitcon.

The bitcon pumpers better hope bitcon never gets used as a currency, else there would be dumping of bitcon en masse from merchants converting to dollars. The merchants have to pay their taxes and suppliers in dollars.

AE911Truth's picture

Hopefully, suppliers will wake up and accept payment in bitcoin. 

East Indian's picture

Still note the second line: "and convert into USD". That is where the .gov has you by your neck.

IH8OBAMA's picture

So, what was the Bitcoin basis for the home seller?  And did the home buyer have a taxable event when he provided Bitcoins for the purchase of the house?

TuPhat's picture

I'm so glad to hear that a buyer of real estate can use a medium of exchange that will allow them to remain anonymous.  Other than all the paperwork they sign that is.

VD's picture

didnt you hear, there are other really truly bona fide "coins" that are anonymous.

Justin Case's picture

He'll be getting some visitors shortly, to congratulate him on his purchase.

Hanomy's picture

Interesting timing after we learned yesterday that most of the bitcoins are held by a small group of people.  But still, the seller converted to USD.  What's the point?  This is just like the buyer gives the seller a note saying "you will get paid in USD in 10 minutes"?

Bunga Bunga's picture

It still has an advantage, because BTC payments clears so quickly. Over the banking system it takes days before a payment clears and the title can be transferred. With BTC you can do the title transfer in the same meeting.

adr's picture

Ten minutes to cash is bullshit. You can't get more than $2500 out of most Bitcoin exchanges in a single day. 

By the way, not the first home bought with Bitcoin, it happened four years ago. People also bought cars, concert tickets, and a lot of other things. All kicking themselves since they traded away millions for a pizza. 

Silver Glock's picture

I can get $100.000 per day out of Kraken.com, $500.000 per month

Just get a Tier 4 and you can get higher limits tailored to your needs

 

Justin Case's picture

Never discovered the certified cheque or bank draft yet?

MansaMusa's picture

Exactly, thanks for pointing that out to the Bitcoiners.  Might as well wrote a check it wired cash, possibly even less than 10 minutes !

freedogger's picture

Converted it to $USD??? They'll regret that move.

HRH Feant2's picture

After closing on a few houses, doing more than one refi, what a breath of fresh air!

Ten minutes to close the deal and confirm transfer of funds! Woo hoo!

Herdee's picture

Government is paranoid of blockchain technology. It would quickly bring financial responsibility to government spending. The first ones to oppose it would of course be the CIA and the Pentagon.