Two homes on the market in Avalon and Stone Harbor have agreed to accept cryptocurrency as payment. The owners of the homes are asking in the neighborhood of $25 million.
If a cryptocurrency deal is finalized it would be a first for Cape May County real estate.
The market for cryptocurrency real estate sales is a niche one, but also one that is growing in acceptance. As early as 2021 a Miami Beach penthouse sold for $22.5 million paid for entirely in cryptocurrency.
This year a studio condo apartment at the tony Rider Residences in Miami sold for $528,900 in bitcoin. It was touted as the first direct “wallet-to-wallet” transaction in real estate purchase.
The purchase was seen as so novel that Miami’s mayor, Francis Suarez, announced it in his Instagram account, saying that it proved that Miami is the “Capital of Capital” and calling the transaction an example of the “future of Miami real estate.”
A wallet-to-wallet transaction is one in which the buyer sends the bitcoin from his wallet directly to the seller’s wallet electronically, with various documents in place that protect the seller if the value of the cryptocurrency fluctuates during the consummation of the deal.
In Cape May County broker Jack Vizzard of BHHS Fox Roach Realtors announced the potential for cryptocurrency deals on two oceanfront properties: A $26.5 million new-construction home on Dune Drive in Avalon and a nearly $25 million double-lot estate in the south end of Stone Harbor.
Vizzard said there are several benefits to a cryptocurrency transaction, citing the speed with which it can happen, the fact that banks are not necessary for the deal, and the fact that there are no wire transfer or currency exchange issues. He also says there is more privacy in a crypto transaction.
He added: “We believe this will expand the buyer pool to include international clients who prioritize anonymity in transactions and appreciate the absence of bank fees and currency exchange issues.”
He predicted such sales will become commonplace in real estate transactions, especially those that involve wealthy buyers seeking to move volatile cryptocurrency to safer assets. As he describes it, the “buyer goes from a very vital asset cryptocurrency which has wild swings and value to a more stable investment and a tangible investment of real estate.”
The seller in such a transaction has the option to hold the cryptocurrency or exchange it for cash after the settlement.
From bitcoin’s origins in the 1970s to today the world of cryptocurrencies has undergone a massive expansion. Such currencies can experience wide swings in value. Bitcoin is basically a peer-to-peer currency that does not depend on banks or the government to secure it.
Using blockchain technology, which involves the use of millions of computers around the world, cryptocurrency now is protected from the attempt of anyone to sell the same coin twice, once called the “double-sell” problem.
In cryptocurrency, cryptography, an underlying component of the digital funds, scrambles the electronic data in a transaction, with each party to the transaction holding a key to the scrambled data. This allows any transaction to be both fast and private.
Cryptocurrency gained in popularity after the financial crisis of 2008, which led many individuals to a deep distrust of banks and government involved in traditional currencies. Desire for a peer-to-peer form of currency increased.
From non-fungible tokens to digital-only art, the world of digital currency and exchange continues to grow. In Cape May County that growth could include ultraluxury real estate available for a cryptocurrency transaction.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
