When most people hear the word Bitcoin, they think of zero regulation and unpredictability, in fact the Wild West of currency. But not businessman Derryn Shrosbree.
"I am an ex-derivative wall street trader, so I do not mind," said Shrosbree. "I believe in cryptocurrency … I think it's the future."
To prove his point, Shrosbree noted his two-bedroom home Mississauga, Ont., On sale for 35 Bitcoin, which at the time of writing this article would house the value at about $ 450,000.
Since Shrosbree only accepts Bitcoin, its pool of buyers is shrinking dramatically because entering the cryptocurrency market is a challenge and not many interested buyers will be willing. Yet he thinks it will be a good experiment, especially for those who have bought a lot of the tender and are now looking for a more stable asset.
"It's pretty hard to get rid of Bitcoin blocks quickly, so real estate fits in that of course. If people want to forgo 30 or 40 coins at a time, it's kind of a good way to to do through real estate, "Shrosbree said.
Listing can attract foreign buyers
Real broker Brett Starke jumped the opportunity to sell Shrosbree's condo. He says that although Bitcoin's requirement closes the door for a large demography, it opens up to foreign buyers.
"For example, if I live in a country where I can not get my money from the country, but I can get it in Bitcoin, then it gives me the opportunity to enter the Toronto property market," said Starke.
If it sells, the apartment will be the first in Canada to do so for cryptocurrency. There have been other properties in British Columbia and Alberta where cryptocurrencies would have been accepted as a means of payment, but the Victoria building has not yet been sold and those in Alberta have been removed from the market.
There is also a website, Cryptonumus.io, where you can exchange digital assets for real estate. It is run by Comp Capital Ltd., a Bermuda company. All listings are for developments in Ontario that would be purchased directly from the manufacturer but not yet sold.
For the seller, the bet to sell a property using Bitcoin could be a part of the allure. The currency is so unpredictable that, if Bitcoin shoots up a few months after closing the auction, the supplier can make thousands of it. Or lose them if the currency falls.
Cryptocurrency expert says that listing can be a gimmick
Anthony Diiorio is the CEO of Decentral, a software development company that focuses on the blockchain technologies behind crypocurrencies such as Bitcoin. He says that although crytocurrencies are the future, listings such as Shrosbree & # 39; s will not easily cause an influx of foreign buyers.
"I would say that something like this is more of a marketing gimmick right now," Diiorio said. "If someone is really interested in selling a house, how likely is he to find the person who would really want his house and that person would have the Bitcoin to pay for it?"
In British Columbia, the province's real estate council warns professionals against processing purchases in cryptocurrencies because it says the money can not be traced in the traditional way.
The Real Estate Council of Ontario (RECO) examines Bitcoin and other cryptocurrencies and recognizes "the merits of new forms of currency in the age of evolving digital commerce," says RECO & # 39; s registrar Joseph Richer.
Richer warns people to protect themselves, but says: "We do not regulate buyers and sellers and do not impose any restrictions on the way they choose to pay for housing."
According to Starke, people can leave their homes pay with "a stone of gold, or two chickens if they want to." He also says that the sale of Shrosbree must go through the same checks and balances as any other transfer of ownership in Canada.