Direct Bitcoin Home Sale Achievement Unlocked
The bitcoin circular economy continues to grow and squeeze fiat out of the deal, driving down demand for fiat and increasing demand for bitcoin. In a milestone this month, a Portuguese homeowner is the first person to accept bitcoin directly as payment for selling a piece of property.
There have been bitcoin home sales in the past, but in previous deals, the bitcoin was exchanged for fiat at the point of sale and settling the deal.
The sale is no random occurrence or dumb luck but went through as Portugal has changed its rules last month setting the directives as to how owners and real estate agents could sell properties for cryptocurrency directly.
The first property for bitcoin sale was an apartment in Braga, Portugal which was sold for 3 BTC on the 5th of May 2022.
Portugal trying to become more bitcoin-friendly
Portugal has always been known for its friendly tax regulations for bitcoiners but with competition heating up, they need to remain attractive to investors. El Salvador and CAR offer legal tender, while Panama is offering no capital gains tax.
However, the chance to own European property for bitcoin is indeed a unique offering. There are not only individual bitcoin holders but companies also with it on their balance sheet and could draw down their bitcoin position to acquire commercial real estate.
Real Estate is grossly overvalued
While this is a great milestone to add to the growing bitcoin circular economy, I still think it's a tad premature at current prices. Real Estate is still grossly overvalued compared to bitcoin in my opinion and I think a better option would be to use bitcoin as backing for a mortgage and leveraging depreciating fiat to pay for the property.
As you draw down your fiat obligations through your payments and your bitcoin appreciates your interest rates decrease and it becomes cheaper to pay back the loan.
If you want to see how gross real estate values are compared to bitcoin check out coinhomes where property is listed in bitcoin terms.
Real estate for bitcoin coming soon
As countries that are not G7 nations see their currencies implode you would be silly to demand that currency for real estate, sure some people who don't understand purchasing power will still accept fiat but a seller who knows the value of property in fiat terms would learn to insist on bitcoin.
There will come a time when sellers refuse to take Lebanese pounds, Turkish lira, or South African rands for property and would insist to be paid in a fiat currency of relative stability like the US dollar or bitcoin.
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