Real estate management and development firm Magnum Real Estate Group is selling a range of retail apartments in New York City for $ 29 million in Bitcoin (BTC) only, the latest sign that BTC is widespread across various industries.
The first commercial property in New York enters the digital currency market. Magnum Real Estate Group is selling 3 retail apartments complete with a fully rented retail basement on the Upper East Side of Manhattan for $ 29 million – but only accepts Bitcoin.
Located at 385 First Avenue in a newly built luxury residential building in Gramercy Park, the 9,000 square meter ground floor apartments are fully rented by ProHealth, Mighty Pita and M&T Bank.
“There is a demand for real estate and nothing is offered to crypto owners”says Ben Shaoul, managing partner of Magnum Real Estate Group
“Our idea is to offer something unique and try to connect crypto owners with people who want to sell real estate. “ he added.
This isn’t Shaoul’s first crypto transaction. In 2018, he made three apartment transactions, including the sale of a retail apartment on the Upper East Side for $ 15.3 million in Bitcoin. And Shaoul hopes that crypto-based real estate transactions will flourish.
Shaoul says: “I see the runway for crypto transactions growing exponentially.”
Located at 385 First Avenue on Manhattan’s Upper East Side, NYC Real Estate consists of 3 retail apartments totaling 9,000 square feet f. 800 square meters, with the lower floor being an all-inclusive retail store, according to Yahoo! Finances
With a bitcoin trading around $ 60,000 per coin, that asset is worth around 483 BTC
The large Bitcoin payment service provider BitPay will process the transaction, with the transaction expected to be completed within one working day instead of the usual 30 to 90 days.
Shaoul admits this won’t be the first crypto-exclusive transaction in NYC real estate. In 2018 he is said to have made 3 house purchases with Bitcoin.
“Investors have done a great job owning Bitcoin and are now looking for cash flow in real estate and real estate to give someone the opportunity to buy long term real estate with cash flow so they can take some off the table or trade and sell the asset in one few years as it gains value for another crypto buyer. “, he said.
Meanwhile, French DJ David Guetta gave buyers of his $ 14 million Setai Residences luxury apartment the option to pay with BTC or Ethereum (ETH) earlier this year.
BitPay is also reporting strong demand for cryptocurrencies to buy luxury goods, including jewelry, gold, yachts, and real estate – which accounted for about 32% of the company’s volume in October.
BitPay’s chief marketing officer, Bill Zielke, noted that investors tend to dump their holdings when prices go up. Zielke says: “There is a correlation with our volume and price. “When prices go up, people tend to spend money. I assume that this trend will continue. “
Trading Bitcoin has a number of efficiencies and benefits. This means that processing takes place on the next working day instead of the usual 30 to 90 days and buyers send their cryptos from the digital wallet to the Bitpay wallet.
Magnum Real Estate doesn’t have to touch any cryptocurrency. The one-day settlement is processed through the US automated clearinghouse for the cryptocurrency network, which processes financial transactions for consumers, businesses, and governments, and Magnum receives US dollars.
Then BitPay receives the crypto, Magnum is paid in dollars and the buyer’s transaction is completed and paid out in one day. Transactions can be made 24/7 from anywhere in the world – and since it’s Bitcoin and processed over the blockchain, there are no banks or traditional money transfers involved and it’s safe.
When the transaction is funded, BitPay pays the crypto portion of the transaction, and the funded portion is processed by the real estate company through regular financial credit channels.
As the price of Bitcoin and other cryptocurrencies soars to record highs, investors are looking for ways to cash out with this cryptocurrency and buy something – be it real estate, cars, electronics, or real estate.
Zielke says: “There is a correlation with our volume and price. When prices go up, people tend to spend money … I expect that trend will continue. More people are buying and holding cryptocurrencies than ever before. So if that goes up, so will spending. ”
The purchase of luxury goods with cryptocurrency is increasing. BitPay, which has relationships with global yacht broker Denison and luxury car dealerships including Ferrari and Lamborghini, is seeing strong growth. About 32% of BitPay’s processing volume in October came from the purchase of luxury goods such as jewelry, gold, yachts, and real estate.
In the third quarter, BitPay saw similar amounts at around 30% of volume (dollar sales amount) from the luxury goods category. The cryptocurrency of choice is Bitcoin, which makes up 60% of the volume.
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According to Cointelegraph
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