{"id":60645,"date":"2017-12-15T05:00:02","date_gmt":"2017-12-15T13:00:02","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=60645"},"modified":"2020-10-06T17:08:06","modified_gmt":"2020-10-07T00:08:06","slug":"18-bitcoins-will-buy-the-average-american-home","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/18-bitcoins-will-buy-the-average-american-home\/","title":{"rendered":"18 Bitcoins Will Buy the Average American Home"},"content":{"rendered":"<p><figure style=\"width: 735px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2017\/12\/Bitcoin.jpg\" alt=\"Bitcoin virtual currency\" width=\"735\" height=\"490\" data-portal-copyright=\"\" data-has-syndication-rights=\"\" data-license-id=\"\" data-licensor-name=\"\" \/><figcaption class=\"wp-caption-text\">Image via iStock<\/figcaption><\/figure><br \/>\n<a href=\"http:\/\/money.cnn.com\/infographic\/technology\/what-is-bitcoin\/\"><span style=\"font-weight: 400;\">Bitcoin<\/span><\/a><span style=\"font-weight: 400;\">, the first digital currency that works without a bank or middleman, surged 183.6 percent in the last month, from $5,870.37 per coin on Nov. 12 to $16,650.01 on Dec. 12, according to Bitstamp data. Its market cap is more than $293 billion, and while some analysts warn of a <\/span><a href=\"https:\/\/www.cnbc.com\/2017\/12\/11\/ubs-cryptocurrencies-like-bitcoin-are-the-bubble-to-end-all-bubbles.html\"><span style=\"font-weight: 400;\">crypto bubble<\/span><\/a><span style=\"font-weight: 400;\">, others say Bitcoin could eventually <\/span><a href=\"https:\/\/cointelegraph.com\/news\/at-160-bln-bitcoins-market-cap-is-larger-than-that-of-once-worlds-largest-company\"><span style=\"font-weight: 400;\">compete against the gold market<\/span><\/a><span style=\"font-weight: 400;\">. <\/span>Regardless, cryptocurrency has created fast wealth <span style=\"font-weight: 400;\">for investors, and now some are cashing out and going house hunting. <\/span><br \/>\n<span style=\"font-weight: 400;\">Real estate a<\/span><span style=\"font-weight: 400;\">gents in Boston, Chicago, Houston, Philadelphia, Washington D.C. and several cities in California said they\u2019ve had conversations with people about using cryptocurrency as part of their transaction. <\/span><br \/>\nCarina Isentaeva, a Redfin agent in\u00a0<a href=\"https:\/\/redfin.com\/city\/17151\/CA\/San-Francisco\" target=\"_blank\" rel=\"noopener noreferrer\">San Francisco<\/a><span style=\"font-weight: 400;\">, recently helped a client write an offer on a luxury home in Silicon Valley that was contingent on the sale of cryptocurrency. The offer was accepted, but the buyer ended up backing out when his cryptocurrency didn\u2019t sell. Isentaeva said she\u2019s confident he will buy when it does.<\/span><br \/>\nJeremy Paul, a Redfin agent in <a href=\"https:\/\/redfin.com\/city\/16904\/CA\/San-Diego\"><span style=\"font-weight: 400;\">San Diego<\/span><\/a><span style=\"font-weight: 400;\">, also worked with clients who held Bitcoin. He said his clients cashed out two bitcoins, valued at $7,435 each, to cover the closing costs on a home in Carlsbad, CA.<\/span><br \/>\nAnd homebuyers aren\u2019t the only ones in the cryptocurrency game. Redfin found 75 listings nationwide in which the seller mentioned he or she will accept Bitcoin as payment. The seller of a condo in Miami is requesting payment in Bitcoin only<span style=\"font-weight: 400;\">; it will cost the buyer<\/span><span style=\"font-weight: 400;\"> 33.<\/span><br \/>\nOne way to illustrate the unprecedented growth of Bitcoin is to look at the <a href=\"https:\/\/public.tableau.com\/profile\/redfin#!\/vizhome\/HomePricesinBitcoins\/NationalHomePriceBitcoins\" target=\"_blank\" rel=\"noopener noreferrer\">price of the typical home in bitcoins over the past year<\/a>. For example, in January 2016 in San Francisco, the typical home would have cost a buyer 2,805 bitcoins. Today, the median home in San Francisco is 82 bitcoins.<\/p>\n<figure id=\"media-60667\" class=\"align-none\"><img decoding=\"async\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2017\/12\/National-Home-Price-Bitcoins.png\" alt=\"National Home Price Bitcoins\" data-portal-copyright=\"\" data-has-syndication-rights=\"\" data-license-id=\"\" data-licensor-name=\"\" \/><img decoding=\"async\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2017\/12\/Latest-Metro-Prices-in-Bitcoins.png\" alt=\"Latest Metro Prices in Bitcoins\" data-portal-copyright=\"\" data-has-syndication-rights=\"\" data-license-id=\"\" data-licensor-name=\"\" \/><\/figure>\n<figure id=\"media-60668\" class=\"align-none\"><\/figure>\n<p>For buyers who have made a lot of money on the recent surge in cryptocurrency value, buying a home is a reasonable way to use the proceeds. For sellers accepting Bitcoin, however, it\u2019s riskier because accepting cryptocurrency as payment is a bet that it\u2019s going to continue to increase.<br \/>\n\u201cIt\u2019s hard to say whether the use of cryptocurrency to buy and sell homes is a long-term trend or just a blip based on the recent spike in value,\u201d said Redfin chief economist Nela Richardson. \u201cIn some ways, cryptocurrency investors have just won the lottery, and so it makes perfect sense to buy their dream home. On the other side of the \u2018coin\u2019, sellers probably wouldn\u2019t accept lottery tickets as payment.\u201d<br \/>\n<span style=\"font-weight: 400;\">Currently, Redfin does not accept cryptocurrency as a form of payment. <\/span><br \/>\n<b>Methodology<\/b><br \/>\n<span style=\"font-weight: 400;\">For this analysis we pulled the monthly median sale price for each metropolitan division with a population of 750,000 or higher. Then we pulled the daily weighted BTC to USD exchange rate from Bitstamp (via <\/span><a href=\"https:\/\/www.quandl.com\/data\/BCHARTS\/BITSTAMPUSD-Bitcoin-Markets-bitstampUSD\"><span style=\"font-weight: 400;\">Quandl<\/span><\/a><span style=\"font-weight: 400;\">) and used the value for the end of every month. Then we divided the typical home price by the corresponding exchange rate to convert home prices in dollars to bitcoins.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cryptocurrency has created fast wealth for investors, and now some are cashing out and going house hunting.<\/p>\n","protected":false},"author":13416,"featured_media":60646,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[8],"tags":[111,112],"dashboard":[],"coauthors":[],"class_list":["post-60645","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-market-news","tag-christmas","tag-cryptocurrency"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.5) - 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