When does a cryptocurrency like Bitcoin become legitimate? Possibly when it’s used to buy expensive homes, as has been the case in Austin, Lake Tahoe, Denver, Miami, and other locations around the country. The first recorded sale of a home involving Bitcoin took place in 2014 in Texas. The buyer completed the transaction using BitPay, which turned Bitcoin into dollars that were then transferred to the seller. It was essentially an all-cash deal.
According to the real estate firm Redfin, Bitcoin is currently hot in south Florida and California as a way to pay for homes. Sellers are generally fine with the arrangement as long as they get their money in U.S. dollars. Because of the wild fluctuation in Bitcoin values, it’s a good idea to engage a title company, a licensed agent, and a reputable lender—same as with a traditional title transfer. With those safeguards in place, a Bitcoin transaction is as legitimate as any other, and may just be a sign of things to come.