According to a recent report from CTV, a couple in Calgary, Canada — wife Jennifer Blachette and husband Martin Kanka — is looking to sell their house… for Bitcoin. 27.1 coins, to be exact, which is a sum that equates to around $238,000 U.S. at current prices.
On the matter of why they’re making this decision, Blanchette looked to her disdain towards banks. “I’ve been defrauded through banks,” she explained. Kanka added that he is rather bullish on Bitcoin compared to real estate, claiming that the cryptocurrency will be “astronomically higher” within the next decade’s time.
Greater Property Group, who represents the sellers, expressed optimism towards cryptocurrencies as well. Kris Dennis of the firm told CTV in a press comment:
“This is a one-of-a-kind property and offering the option to buy in bitcoin opens up to international audiience. When a buyer uses bitcoin or any cryptocurrency, the transfer of funds is much faster than the traditional banking system and less expensive.”
He added that the property has already seen some potential buyers swing by, who claim to want to pay using BTC.
While this sale may seem like a far-fetched plan, there is evidence of homes actually selling for cryptocurrencies.
As reported by this outlet earlier this year in April, a glamorous modern home down under was sold for a jaw-dropping 457 BTC, which amounted to $2.4 million at Bitcoin’s then current valuation. To put 457 BTC into perspective, here are some numbers:
— CZ Binance (@cz_binance) April 8, 2019
457 is the number of BTC mined in 36.5 blocks, which take approximately six hours to process. 457 is approximately 0.002100% of the entire supply of Bitcoin that will ever be mined. Long story short, 457 BTC is quite a hefty sum, that’s for sure.
Don’t Want to be the “Bitcoin Pizza Guy”
That led me, personally, to the following question: Could the owner of the Australian house and Bitcoin users that participate in other high-ticket purchases with cryptocurrency become the next Laszlo, a BitcoinTalk user who purchased two purportedly Papa John’s pizzas for 10,000 BTC?
The answer: no, likely not. But “baller” crypto investors might be missing out on a large amount of upside if they decide to spend their coins.
PlanB’s stock-to-flow scarcity model for Bitcoin, which uses the cryptocurrency’s stock-to-flow ratio (effectively the inflation rate) and relates it to BTC’s market capitalization, predicts massive appreciation in the future. The linear regression model, which produces a 95% R2 (statistic lingo for extremely accurate), predicts that BTC’s fair value will reach somewhere between $50,000 and $100,000 after May 2020’s halving event.
Stock-to-flow model has a lot of proponents, but not everybody is a fan. For a balanced view here are some of the most well known people against S2F:https://t.co/p2cLe7uGIDhttps://t.co/WlYSChAfVthttps://t.co/TzRLfxRZ9E
Tell me what you think. And .. did I miss anybody? pic.twitter.com/PthuHUvrlP
— PlanB (@100trillionUSD) October 29, 2019
Of course, there’s a chance that Bitcoin could begin to lose steam, and start to decouple from this model. But bulls aren’t expecting that to happen… obviously.
Photo by Samson on Unsplash