For sale: Derryn Shrosbree & # 39; s apartment in Mississauga. List price: 35 Bitcoin.
The former Wall Street trader in derivatives, who has become an insurance agent, intends to marry cryptocurrency with the life insurance business.
Two weeks ago, after a meeting with broker Brett Starke in Toronto, he decided to throw in the home sales as well. Shrosbree owns six properties – five in the Greater Toronto Area, one in Halifax – and said he did not do much with them.
"I said why do not we mention them for Bitcoin?", He said.
Shrosbree said that he had previously sent the idea to other brokers, but none of them seemed to understand it. Starke did it.
"Without even hesitating, I just said & # 39; yeah & # 39 ;," Starke said.
So last Friday Shrosbree & # 39; s condo unit at 3170 Erin Mills Pkwy. went on sale for 35 Bitcoin – which at that time was about $ 445,000 Canadian worth.
Because the value of the cryptocurrency is not fixed and because it is traded online, the exact value of it can fluctuate drastically in minutes. To address this problem, Starke said that the lawyers have written a clause, whereby the buyer will pay the value of bitcoin on the closing day.
"We re-prize it every day", said Shrosbree earlier this week in an interview.
An offer was made on the condo Wednesday with the most recent list price of 33 Bitcoin (which at that time was worth about $ 443,000). Starke said that they accepted the offer and that the apartment is considered "conditionally sold".
He said that next week they will meet a company with bitcoins to draw up an "action plan" on how the exchange of money should be implemented. The final sales price will only be released if all conditions have been met.
"It's the first Bitcoin sale (of an apartment) that's been done in Toronto, period," Starke said. "It is definitely the first in Ontario that is listed for Bitcoin."
Starke said he is not aware of other cryptocurrency-based condo sales in Canada, nor does Shrosbree.
"I do not know anybody who wants to do this – except me," said Shrosbree.
Several pre-sale offers for the condos of Toronto in Bitcoin exist on CryptoNomos, a website based on Bermuda. offers owners the possibility to exchange properties for cryptocurrency. CryptoNomos spokesperson, Donald Choi, described the platform as an opportunity for people who have digital assets to step into the real estate market.
The practice of exchanging Bitcoin for real estate is new, Choi said. Although Choi acknowledged that some exchange as & # 39; volatile & # 39; would, he defended the ability of the platform to get something that you have stabilized & # 39; of your Bitcoin.
The Ontario Real Estate Council is currently investigating the use of cryptocurrencies in real estate transactions.
"While acknowledging the merits of new currencies in the era of evolving digital commerce, RECO, as a regulatory authority, must ensure that all business transactions between consumers and sellers of real estate, brokers and brokers, adhere to the Real Estate Business and Brokers Act, "said registrar Joseph Richer.
"However, RECO does not regulate buyers and sellers and if a transaction would take place between two parties without the intervention of a broker, it would fall outside RECOs to determine the legality or feasibility of that transaction."  Bitcoin – as well as other cryptocurrencies – are not considered legal tender in Canada. But cryptocurrencies are completely legal to use in private sales between individuals. The website of the Bank of Canada warns that cryptocurrencies may be "risky investments" due to their inherent volatility.
But this does not stand in the way of Shrosbree.
"I'm okay with volatility, I like risk" I understand volatility, so it does not really worry me, "he said, noting that a sale that is dependent on cryptocurrencies is risky for both the buyer as the seller.
Shrosbree compared the uncertainty surrounding cryptocurrency with the unease surrounding the early use of credit cards in the 1950s.
"The early adopters of credit cards – people thought they were crazy," he said. "And yet today, if I were to ask you for your credit card, you would just give it to me."
Both Shrosbree and Starke are enthusiastic about the future of cryptocurrencies such as Bitcoin and Etherium and believe that – despite the risk – they represent the future of currencies.
If the sale of his apartment in Mississauga works, Shrosbree said he would consider selling his remaining properties with Bitcoin.
"It's really going to revolutionize the way we pay and buy things," Shrosbree said. "I happen to be an early adopter."