• CMG MORTGAGE, INC. NMLS #1820

Will it be possible to buy a home with Bitcoins?

  • December 19, 2017

Investors around the country are captivated with the debate surrounding Bitcoin and other cryptocurrency.  Bitcoin, the first digital currency that does not require a bank or middleman, is traded online through a digital ledger.  In the past month, the valuation has soared from $5,870.37 per coin on November 12, to $16,650.01 per coin on December 12.  While some investors are warning of a “crypto bubble,” others are researching ways to integrate the cryptocurrency into the greater economy. 

Real estate agents around the country are having conversations with buyers and sellers regarding the use of cryptocurrency as part of a home purchase or sale.  Redfin reports real estate agents in both San Francisco and San Diego worked with buyers who used the proceeds from the sale of Bitcoins toward buying a home.  Additionally, 75 listings nationwide include sellers who are willing to accept Bitcoin as a form of payment.  Mike Sorohan from the Mortgage Bankers Association wrote, “At its current value (just under $18,000 as of Dec. 15), someone could purchase the median-priced U.S. home ($292,000) for slightly more than 17 Bitcoins.”

While the sale of a Bitcoin can produce actual cash to be used toward a home purchase, accepting Bitcoin as a form of payment is murkier territory.  Redfin Managing Editor, Natalie Schwab explained, “For buyers who have made a lot of money on the recent surge in cryptocurrency value, buying a home is a reasonable way to use the proceeds. For sellers accepting Bitcoin, however, it’s riskier because accepting cryptocurrency as payment is a bet that it’s going to continue to increase.”

Bitcoin supporters, like Peter Smith, the CEO of Blockchain, a cryptocurrency wallet platform, believe that central banks are likely to hold digital currencies in their balance sheet as early as next year.  CNBC reports that the United Arab Emirates and Saudi Arabia intend to issue a cryptocurrency for cross-border trade and China’s central bank is considering issuing a cryptocurrency as well.  However, European Central Bank President Mario Draghi explained, “right now we think that especially as far as Bitcoins and cryptocurrencies are concerned, we don’t think the technology is mature for our consideration.”

As the value of Bitcoin continues to appreciate, more discussion surrounding its use in financial transactions is expected. 

 

Sources: CNBC, Mortgage Bankers Association, Redfin

Kimberly Allen
Branch Manager
NMLS # 431903
Branch NMLS # 1666986


Kimberly Allen

PHONE: (415) 324-1000
kimallen@cmgfi.com

APPLY NOW
CMG Image
© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).