A little over one year ago The Keyes Company announced only the third ever Bitcoin real estate transaction in Florida.
While the price of Bitcoin was down from the golden era of late 2017, it was still valued at over $10,000 during that month of February when the Florida Bitcoin real estate deal was hitting the headlines.
The Miami townhouse eventually sold for $338,878, paid for in cryptocurrency. A new era was dawning, or so we believed.
Although the value of Bitcoin was still at a healthy level, especially looking back today with hindsight, and the price fluctuations certainly weren’t as bad as they would eventually become it’s still something that both buyer and seller had to take into account when carrying out the deal.
Manuel Perez, part of the real estate team involved in listing the project commented at the time that "the value was set in dollars, and the number of bitcoins was determined at the moment of the closing.
“We negotiated with the buyer to have a fluctuation limit during the period of transfer, as a safeguard for both sides against a sudden crash or spike. Luckily, while there was some fluctuation, it was minimal by the time of receipt, and everyone walked away happy.”
Fast forward one year to February 2019 and things have changed. A lot.
Bitcoin was valued at under $4,000 for the second month running and for only the second time since July of 2017.
Another bull run on the horizon?
Even the most optimistic Bitcoin supporter would be hard-pressed to claim that the drop-off we’ve seen in the second half of 2018 and into 2019 hasn’t had an effect on the way the real estate markets approach to crypto has changed. After all, a new technology needs all the help it can get when trying to disrupt an industry that’s operated the same way for decades.
Thankfully, it seems that things are looking somewhat positive for the moment, with Bitcoin seeing a respectable uptick in value over the past week. Will it be the start of another bull run? It’s hard to say.
What we can say is that positive news for the crypto and blockchain industry can only be a good thing for those who are fighting the good fight for crypto in the real estate space. Companies such as B11G, who are currently using a blockchain-powered crowdfunding model to realize their plan of creating a 38 unit, 4,126m2 industrial building mere minutes from the center of Tallinn, the capital of Estonia are one such example.
Using a unique Initial Loan Procurement (ILP) model, B11G are taking the concept of real estate crowdfunding and adding a blockchain-powered twist.
While the price of Bitcoin won’t directly affect the success of such projects, the positive outlook and enthusiasm that the industry receives from such news certainly won’t hurt.