A Calgary man has become the new owner of a million-dollar home, and he largely paid for his new pad with Bitcoin.
Earlier this month, Canadian brokerage Greater Property Group, which specializes in real estate transactions conducted in Bitcoin and Ethereum, closed the deal on the sale of a $1,000,000 listing.
The local buyer snatched up a "desirable" three-bedroom, three-bathroom property located in central Calgary's Glendale neighbourhood for $800,000 paid in Bitcoin and a further $200,000 paid in Canadian dollars.
The home's seller came to Greater Property Group specifically because he wanted to sell the house in exchange for Bitcoin.
READ: Buy In: Cryptocurrency Could Revolutionize the Real Estate Industry
While this transaction might sound unusual to some, it's far from the first property to be purchased with Bitcoin, which can also be used to pay for rent in some places in Canada.
Bitcoin does away with a central bank and uses encryption techniques to regulate funds. No third party is involved, so buyers and sellers can make transactions directly. And while people have different reasons for owning Bitcoin, there's no arguing its value has been volatile since its inception nearly 13 years ago. However, as it becomes more widely used and accepted, people are becoming increasingly interested in using it for more significant transactions.
"There is a lot of discussion among investors, economists, and venture capitalists about what they believe is an imminent inflation crisis that could lead to hyperinflation and a devaluation of currency in Canada and around the world," explains David Morrell, CEO of Greater Property Group. "Bitcoin is seen as a safe harbour from inflationary headwinds and that's why so many sellers are interested in conducting their transactions in cryptocurrencies."
Morrell said this sale represents a significant milestone in the mainstream use of cryptocurrencies. While there has been a lot of interest in Ethereum and Bitcoin over the past year, Morrell says one factor has detracted many from seriously investing in digital currency.
"The use of digital currency to purchase tangible goods has in the past been challenging. The need to convert digital currency to large sums of cash can be difficult," explained Morrell.
However, this transaction helps demonstrate that cryptocurrencies do have a place in the real estate market, which Morell says is the biggest source of wealth creation in our economy.
"It's impossible to ignore the use of digital currency in real estate now," added Morell.
