Miami real estate loves Bitcoin – will Bitcoin love it back?
Developers and brokers are embracing the cryptocurrency – but have they factored in its volatility?
(Photo illustration by Jhila Farzaneh for The Real Deal. Credit: Getty Images)
A condo for sale in Miami hit the market earlier this month accepting only Bitcoin, grabbing headlines as one of the only U.S. real estate listings to limit itself to the cryptocurrency.
The one-bedroom pad at 480 Northeast 30th Street listed on Dec. 8 for 33 Bitcoin, or about $550,000 at the time, according to the listing agent. But as of Tuesday, 33 Bitcoin is now equal to about $603,000. In dollar terms, that’s a jump in the asking price of about 10 percent in less than two weeks.
As Bitcoin mania mints a new crop of millionaires, many who struck it rich betting on the cryptocurrency are looking for ways to diversify their wealth. Real estate agents and sellers are hoping to lure them by touting their Bitcoin-friendly listings.
“A lot of folks who have been speculating on Bitcoin are trying to find a place to put this wealth,” said Andrew Hinkes, a Miami-based attorney. Foreign investors sitting on “mountains of capital” could also turn to Miami real estate as a safe haven for their cryptocurrency fortunes, he said.
But the 480 Northeast 30th Street example illustrates just how tricky things can ge[……]