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BITCOIN NEWS

Crypto Millionaires In China Are Buying Real Estate Through Bitcoin

The early adopters of Bitcoin and other cryptocurrencies have noted a rise in the values of their holdings to unprecedented levels in terms of value, leading them to distribute their investments into different alternative investments including global real estate industry.

No different is a case with Bitcoin adopters of China. Guo Hongcai, from Shanxi province of China is one of the recently turned millionaires who made fortunes because of early adoption of Bitcoin and is now investing their wealth in other countries purchasing real estate.

A couple of months ago, Hongcai sold around 500 bitcoins in the States, eventually using the money to purchase a 1,00,000sq. ft. bungalow in Las Gatos, California. Beside his mansion, in the driveway sits his Rolls-Royce, bought with the reapings of Bitcoin speculation.

Guo told, “It’s very normal to sell Bitcoin in the U.S. After selling Bitcoin, you can just buy anything you want,”

Once a beef salesman, Guo refers his newly purchased residency as his “Mansion of Chives,” as it turns out that Chives, is also a slang for crypto investors who remain exposed to big sell-offs.

With Chinese authorities suppressing the industry business, the digital token investors are shifting their focus to global real estate to broaden their investment portfolio. Such purchases are usually made directly in cryptocurrencies but at times investors like Hongcai use the digital currencies to purchase foreign currencies without going through a bank.

An unnamed founder of crypto real estate startup said that majority of the prospects come from Asia, including investors from China looking for tokenised property rights through Hong Kong securities broker.

Chinese investment in foreign real estate through Hong Kong brokers is on a rise and propelled by the cryptocurrency adopters investing their wealth.

“We’re seeing that more and more people are willing to buy properties with cryptocurrencies because it’s getting easier to get their money out of the country using bitcoin, rather than establishing a bank account based in Hong Kong and getting their money out of the country using business channels,” said Natalia Karanyanvea, CEO of Propy, which is another marketplace that provides real estate powered by cryptocurrencies.

According to her, the US and UK have been the most favoured locations for real estate especially London and California’s Bay Area known as fintech hubs.

If we take a look at the other side of the coin, there has also been an increase in the sellers interested in taking payments in cryptocurrencies from international buyers. One of the reason could be tax evasion but, it goes beyond it, to the real pain points in the legal real estate market.

These days, Chinese aren’t the only investors purchasing property with cryptocurrencies. Last year, Europeans traded Bitcoins to buy luxury homes in Dubai’s Aston Crypto Plaza, a project by British Baroness Michelle Mone.

With an increasing acceptance of digital token across countries and an increased use of cryptocurrencies in diversifying investments including real estate, could create a real impact on such markets and its buying patterns.

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