Are you able to buy a house with bitcoins yet?

13 Replies

HI @Rich Drees , kind of a funny question here.  Are you sitting on a stash of coin you're itching to plow into a different investment?

Bitcoin is not valid tender for a home right now en masse, but there are ways to utilize it.  If I'm not mistaken there was an group that experimented with a pure BC purchase up in Rhode Island (?), but most people are selling BC and purchasing in a different currency.

It's a combination of the seller and the title companies who determine what constitutes acceptable legal tender.

Even Bitcoin is legal, it is not still considered as legal tender. But you can buy a house with bitcoin as long as both parties agree on exchanging bitcoin for a property and there would be title company, title insurance and escrow company who are willing to handle Bitcoin transactions. Buying a property with bitcoin won't be that simple.

I think it makes more sense to sell the Bit coin & use the cash to buy real estate. I mean, it's a hard enough thing to find the right property & negotiate terms. Bringing in another speculative means of payment muddies the waters as far as exactly what you are offering. It's like you are asking the seller to gamble on the possibility that the Bitcoin will be worth even more by the time you close. Reminds me of "Let's Make a Deal" (really showing my age now) where you pick one of 3 curtains to see what you bargained for. It's too novel an idea to layer the risk you are asking the seller to take on. If you're not careful, you'll think you're getting a great deal, but you are the sucker!

A house can be "bought" with anything, as long as both parties agree to it. As home prices were booming in SF around 2015 buyers were paying sellers with stock equity in private companies that hadn't gone public yet. Those were crazy times. Buying a home is just a trade of one good for another. It could be another property, cash, bitcoin, or some series of things that started with a paperclip.

All of that said, market norms typically dictate what is accepted which in turn is driven by perceived value and liquidity so most buyers probably wouldn't take bitcoin.

Originally posted by @Chris Gawlik :

Bitcoin is really bad. Just another fiat currency. Gets its value from what people think its worth. If investor confidence starts to fade the currency will drop like a rock. Its even worse then our own dollar.

It's bad? I dunno about that. I think it's still too early to tell.  The bitcoin I bought in 2016 is looking like a pretty good move. Buffet may not be a fan, but Chase, Goldman and other major institutions are now working with it. Quite a few hedge fund + analysts think we could be seeing quite a run up in the next few years. 


I have been pre-approved showing cryptocurrency as an asset. I am sure once I get to the closing stage, I will have to convert it to cash but you can at least delay the sale of the crypto if you think the asset might increase in value. Crypto is super volatile so a 10% increase in a 30-45 day period definitely seems reasonable.