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What can be bought with Bitcoin, you wonder? Have you thought about using crypto to buy a house? It is not just a hypothetical but an actual use for your decentralized digital assets. Learn more about turning crypto into real estate investment in this guide by the ChangeHero team!
Key Takeaways
- What can you use Bitcoin for? The answer depends on where you are from but in many jurisdictions, you can buy anything with it as long as both parties agree.
- Is it possible to buy property with cryptocurrency? Yes, and today there are more services, realtors and options than ever before.
- How to buy real estate with cryptocurrency? In the vast majority of cases, you or your agent will convert it to cash for the transaction. However, direct payments are possible where it is allowed.
Can You Buy Things with Bitcoin?
Can you buy things with cryptocurrency? When you learn about Bitcoin and cryptocurrencies, the first thing you might come to know is their fluctuating value rather than their use in daily transactions. However, ‘currency’ is already in the name, so it is a given that you should be able to use it as such. And yet, there aren’t a lot of examples of Bitcoin being used as anything other than a speculative asset, so can you really use crypto to buy things?
The short answer is yes, of course you can use cryptocurrency as a means of payment, if the seller accepts your transaction. The longer answer would depend on things like where you reside, since some jurisdictions do not recognize crypto as a medium of exchange or even expressly prohibit it.
For example, you may ask what can I buy with Bitcoin in the USA? While it is not illegal in the US or Russia to use cryptocurrencies in payments, these deals would be legally viewed differently depending on the circumstances. Can I use Bitcoin to buy things in Europe? Jurisdictions like Switzerland and Portugal are more friendly to crypto and recognize direct transactions but you will not be able to process them through a bank. It is probably fine for smaller purchases but when you think about whether you can buy a home with cryptocurrency, security and legality are not something to ignore.
Can you buy a house with cryptocurrency?
What can Bitcoin buy? Well, how about a house? Speaking very generally, you should be able to buy real estate with crypto assets such as Bitcoin if you find a seller and/or realtor willing to accept such payment, unless it is banned in your country. But you are probably looking for a more nuanced answer, so let’s look into it some more.
There are only two countries in the world where Bitcoin is considered legal tender, meaning you would not have any issues with buying a house with BTC in El Salvador and the Central African Republic. So you can use Bitcoin to buy a house at least there, right? Reportedly, it is far from ubiquitous even with this status, with some challenges to overcome but at least they do not have to do with the legal side of the deal.
If you are considering real estate in places like the US, the UAE, Portugal, Switzerland, and Thailand, you also can use your cryptos to pay for real estate. Most likely, you will have to arrange a direct payment yourself, as banks in many countries still won’t process such transactions. Alternatively, these days many services help with buying real estate with crypto specifically, although they convert it to cash in the process, which you can do yourself, too.
Can you buy real estate with Bitcoin where it is less of a legal thing? If you are in China, Bolivia, or any other country that has a ban on crypto transactions, the answer is no. Can I buy a house with cryptocurrency if it’s not expressly banned but unregulated? While it is technically possible to carry out crypto transactions in places like India, its legislation surrounding them significantly complicates it when it comes to real estate.
Crypto and Real Estate
With Bitcoin approaching a hundred thousand dollars and Ethereum staying well over two thousand a piece, the value held by these digital assets can buy you property. How can you use Bitcoin to buy things and property in practice?
Adoption is slow but progressing, as the real estate market insiders observe. Finding a seller that would like to accept cryptocurrency is still a tall order but services such as RealOpen and Crypto Real Estate advertise solutions that would turn your crypto into cash for the seller, opening up the number of available options to buy a house with Bitcoin in the USA or abroad.
These intermediaries solve another hurdle that arises when you convert crypto into cash before making a purchase: tax implications. In most cases, cashing out cryptocurrencies is an event that subjects you to capital gains tax. There are also requirements for the ownership of assets, such as holding Bitcoin or other cryptocurrency that will pay for a new home for at least 60 days in your digital wallet (in the US).
If you manage to find a crypto-friendly realtor, your chances to buy houses with crypto grow considerably. They are typically more aware of listings that would accept cryptocurrency or at the very least, have a variety of options and know-how on cash conversion.
Why You Should or Shouldn’t Buy Property with Crypto
Is there a real incentive to use cryptocurrency to buy a house? A major upside of such a move is diversification: unlike the extremely volatile crypto assets, the price of real estate moves more slowly and predictably. Even if you want to use digital assets like stablecoins, there is also the benefit of faster payment and settlement. Although crypto offers many potential advantages, such as smart-contract-regulated escrows, decentralized marketplaces and tokenization, these use cases remain largely out there for real estate transactions.
What can make you reconsider buying property with Bitcoin and crypto, though? We have already briefly covered most of those factors: hefty tax implications, high volatility that can blow up your budget, and lack of legal protections. When making high-value investments such as property and real estate, you’d usually want to avoid any of the above, especially so if they come in a combination.
How to Buy a House with Bitcoin and Crypto
Real estate deals are already complicated enough when done in the most common way. What are your options if you throw mostly unregulated crypto into the mix?
Ideally, you should start at step one and look for crypto properties. Unless you can get a professional to handle your taxes or conversion to cash, not just any offer will do. Next comes property viewing and due diligence, and if that step is easily arranged without involving crypto-related specificities, the paperwork is where the real challenges start.
Can you buy real estate with crypto only? The terms of the contract also depend on the local regulations about cryptocurrency, and it is very likely extra fees and commissions will need to be paid in cash.
Can you take a crypto home loan?
Many house-buyers do not always have the whole sum available and have to take a loan. Cryptocurrency mortgage is not really a thing but using crypto assets as collateral or taking out a crypto loan is an option.
Keep in mind that banks won’t transact in crypto, so if you must, before you mortgage property, cash out. In addition to the ownership requirements, you will need to take care of the tax implications of this transaction before even initiating a house deal.
Crypto lenders can help if you need a certain cryptocurrency for purchase but do not have it on hand. Realtors and real estate sellers prefer BTC, ETH and stablecoins such as USDT and USDC. Using your other altcoins as collateral will usually not trigger a tax event, by the way. However, these loans are not regulated, meaning you will not get any legal protections against liquidation or fraud.
Conclusion
The market for buying real estate with cryptocurrencies is still niche but growing, with crypto hubs offering more opportunities. With each year, buying a house with Bitcoin gets more realistic.
For even more stuff you can buy and do with Bitcoin and crypto, take a tour around our blog and visit ChangeHero’s social media: X, Facebook, & Telegram.
Frequently Asked Questions
Can you legally buy a house with Bitcoin?
Can you really buy a house with crypto assets and digital currency while keeping things legal? If transactions with cryptocurrencies are not outlawed in your country, the answer is yes, buy real estate with cryptocurrency.
Has anyone ever bought a house with Bitcoin?
One example of using cryptocurrency in real estate is Bitcoin millionaire Brock Pierce’s Amsterdam property loan backed by $1.2M worth of Bitcoin. Since then, buying a house with crypto has become more commonplace.
How much Bitcoin to buy a house?
Just like offers in the real estate market, prices on crypto properties vary greatly. Some of the listings featured on the RealOpen marketplace range from 4.4 BTC to luxury apartments for 2,390 Bitcoin.
Is buying a house with Bitcoin taxable?
Can I buy a house with Bitcoin and not pay a tax? In most jurisdictions, where buying real estate with cryptocurrency is allowed, these transactions would trigger applicable taxes (e.g. stamp duty in the UK).
