In what is being reported as a New York City first, a pair of Manhattan condos were put in contract to sell using Bitcoin.
The sales were led by developer Ben Shaoul, president of Magnum Real Estate Group, a residential real estate development and management company. Shaoul says that BitCoin (and cryptocurrency, in general) is no passing fad.
“Cryptocurrency has established itself as a force within the marketplace and it’s quickly showing no signs of stopping,” Shaoul tells BuzzBuzzNews.
As cryptocurrency continued to gain popularity, particularly among Millennials and younger professionals, it was only a matter of time before it was used in home purchase transactions. One of the units at 389 East 89th purchased with BitCoin is a 624 square foot studio that had an asking price of $875,000, while the second is a 989 square foot one-bedroom unit with an asking price of $1.5 million. Both units are currently in contract.
Shaoul says developers should be open to accepting it — noting that once upon a time there was an extreme amount of caution around the internet and its adoption into the business and consumer world.
Like the internet, Shaoul believes that cryptocurrency will be around for the long haul, adding, “real estate developers should see this as an opportunity to create a seamless transactional process between buyers and sellers.”
The flexibility permitted by cryptocurrency is “vital” to the real estate market. For example, it eases the process of large-scale payments and has global implications as well.
“Cryptocurrency is an international currency that has no boundaries. In real estate that’s extremely important, and global platforms that make cross-border transactions are essential to buyers internationally as well,” Shaoul tells BuzzBuzzNews.
Shaoul feels that developers that get in on the ground floor will only thrive in the future.
“There is a demand in real estate to open the doors when it comes to the transactional process and bettering the experience. While cryptocurrency is still in its infancy, developers need to be transparent in being able to adapt to the times and meet demands,” Shaoul asserts.
Generational shifts in how consumers want to make payments could be the key to cryptocurrency’s staying power. Millennials and young professionals are now looking for faster, more reliable payment methods. Younger generations, Shaoul says, value options.
“We’re at a huge turning point to take advantage of the new technology out there for consumers, and I’m excited to be at the forefront,” he concludes.