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

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

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. 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.


VD tmosley Wed, 09/20/2017 - 22:18 Permalink

bc tylerz want to: a. lose even more viewsb. see you bankrupt your mom worse than u did with silverc. dont give a shit about blatant discriminationd. 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.

In reply to by tmosley

aurum4040 abyssinian Wed, 09/20/2017 - 22:48 Permalink

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. 

In reply to by abyssinian

Kotzbomber747 aurum4040 Thu, 09/21/2017 - 03:32 Permalink

“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.

In reply to by aurum4040

aurum4040 overbet Wed, 09/20/2017 - 22:53 Permalink

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. 

In reply to by overbet

gn28 tmosley Thu, 09/21/2017 - 05:51 Permalink

"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 $

In reply to by tmosley

JustUsChickensHere gn28 Thu, 09/21/2017 - 08:57 Permalink

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.

In reply to by gn28

BallAndChained BallAndChained Thu, 09/21/2017 - 02:53 Permalink

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.

In reply to by BallAndChained

TuPhat Wed, 09/20/2017 - 22:04 Permalink

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.

Hanomy Wed, 09/20/2017 - 22:05 Permalink

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"?

adr Bunga Bunga Wed, 09/20/2017 - 23:25 Permalink

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. 

In reply to by Bunga Bunga

HRH Feant2 Wed, 09/20/2017 - 22:12 Permalink

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 Wed, 09/20/2017 - 22:13 Permalink

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.