Bitcoin and property are completely different assets, but that’s what makes it special.
The internet’s been all a chatter this week with some bloke who’s willing to accept Bitcoin as part payment for his house.
And now here I am giving his property in The Basin, Vic another plug. Check it out. Looks like some pretty sweet digs.
My first thought when I saw this was that it was bound to happen sooner or later. Crypto-currencies are here to stay. I’m still undecided about hitching my wagon to Bitcoin in particular, but crypto-currencies as a concept? Forget it. The genie is out of the bottle. They’re not going anywhere.
My second thought was that this guy is a marketing genius. With a vague promise to maybe possibly accept some bitcoins as part of his deal, he’s secured national TV coverage and wall to wall print.
…For free! I’ll take my hat off to that kind ROI any day of the week.
Domain was first to break the story:
“A vendor selling a family house in Melbourne’s outer east is willing to accept Bitcoin as payment, in what could be the first cryptocurrency property transaction in Australia.
… Rob, who did not want his surname printed, is an experienced builder who buys, renovates and flips houses. He first bought into Bitcoin earlier this year, but had watched the cryptocurrency market evolve over the past decade.
His latest project, 1411 Mountain Highway, The Basin, is up for sale, with its listing declaring the “owner is agreeable to accept part payment in Bitcoin”.
“I see cryptocurrency at the moment as like the early days of the internet dot com era,” Rob told Domain.
He believes marketing the property as Bitcoin-friendly could be the deciding factor in someone’s ability to purchase the house.
“If it came down to two or three people, and both had their maximum borrowing capacity at a certain amount, and one has bitcoin — because the banks don’t look at Bitcoin as an asset — that could be something that could get them across the line.”
If it happens, I’ll be curious to know how they manage settlement. Even over a short settlement like 30 days, the price of Bitcoin can vary a lot. Who carries the risk on that one?
But there’s a second leg to this story.
There was a bit of chatter about the deal on one of our forums and it turns out Rob is a student of Dymphna’s!
Classy play, Rob. You’re doing us proud.
I should have known Dymphna’s fingerprints would be on this one. At her Next 10 event she talked a lot about the disruptive power of crypto-currencies, and the impact the block chain would have on the property market.
If you missed the event, we’re in the process of compiling a bit of a best of. It’s no easy task condensing a full day packed full of info down into 50 minutes or something like that, but we’ll get there.
So stay tuned for that one.
So where to from here? Are we going to see a rush of properties on to the market, quoting prices in Bitcoin?
That’s not really where I see it going. I think there’s a bit of a mismatch of vibrations right now between cryptos and property. The crypto space is very dynamic. Prices are all over the shop.
Property on the other hand is steady and predictable. 10% in a year is a big move. Some days Bitcoin does that before morning tea time.
So their different vibrational natures – their frequencies – means there are challenges in marrying them up. Until the price of cryptos settles, and it will have to eventually, then they’re not natural bed-partners.
But that also means they can be playing different roles in your wealth strategy.
Property is a steady, long run play.
Cryptos however can be your fortune makers. The volatility means that if you’re ahead of the curve, you can make easy money timing your entry and exits… if, of course, you know what you’re doing.
(Or you’ve got someone in your ear who does.)
New entrants into the coin space can also offer huge asymmetric risks. They cost you peanuts to buy, but can deliver 1,000% 10,000% gains in an incredibly short time.
So this is something I’m starting to take a serious interest in. As Rob was saying, Bitcoin’s been on the scene for a while, but these are still very early days in the block chian revolution.
And I’m keen to take you all along for the ride with me. I’m involved in a high-end mastermind group, and I’ve got a couple of mates there who are crushing it right now. Like making insane returns. Serious bananas.
They’re not up for sharing all of their trade secrets, but I have convinced them to open the game up for us. Even just a fraction of their knowledge is going to put you miles ahead of the curve.
So put December the 13th into your diary. I’m going to get them in and run a crypto webinar. I’ll bed down the details soon, but for now, keep that Thursday night open.
And let’s all make some serious coin.
Can you see cryptos and property getting into bed together?