In the Netherlands, a Penthouse is reportedly set to be purchased with Bitcoin. The Penthouse will be sold for 1 million Euros. Based on various valuations, the asset is worth a sum of 21 BTC.
The sale of the penthouse is a record-breaking one, making it the first property to be fully purchased with Bitcoin. At the moment, all agreements between both parties have been concluded and the property will be handed over to the buyer upon completion of the transaction.
Bart Greijman has affirmed that the buyer is ready for the purchase and has his Bitcoin available for payment. However, both parties involved in the agreement are still trying to work their way around executing the purchase in a successful manner.
The Challenges of Using Bitcoin
Since it is the first time a property will be purchased with Bitcoin, they are still slightly puzzled as regards the legal documentation procedures given the strange mode of payment.
Greijman said that they will have to work closely with lawyers to ensure that every vital detail is well documented. While the new experience is challenging, Greijman also said that it is an exciting experience. The new experience will serve as a foundation for crypto deals that will be done in the future.
It is usually challenging to use Bitcoin for huge payments. This is because of the volatile nature of Bitcoin. As such, it is difficult to determine a fixed price for a property as a result of the constant fluctuations of Bitcoin.
Van der Lee however made it clear that he is happy to assist both parties involved in the transaction. “If both parties are satisfied with using Bitcoin, then there should be no problem with the deal”, he added. He however does not think that the system has gotten to a point where Bitcoin can totally substitute the traditional fiat methods of payment. While that may happen someday, at the moment, it is not suitable for the financial system.
In recent times, more and more companies have been accepting Bitcoin for payments. This move by large institutions as well as individuals may just be the start of financial evolution.