Cryptocurrency: Can You Use It When Buying or Selling?
Cryptocurrencies are said to be the currencies of the future. Here we’ll ask can you (and should you) buy or sell property using crypto?
What is a cryptocurrency?
Cryptocurrencies have been around for years. However, with President Trump pledging to make the US the ‘crypto capital of the planet’, we could hear a lot more about it in 2025.
A cryptocurrency is a virtual, digital currency. It doesn’t exist in the form of notes or coins. It isn’t controlled by any one organisation, such as a bank or government.
Bitcoin is the best-known cryptocurrency. Other variations on the theme include Ethereum, Tether and XRP.
Can you buy or sell property with cryptocurrency?
Yes, you can. In fact, it’s already been done.
The first UK property transaction in crypto involved a detached house in Essex, and was reported in The Sun newspaper in 2017.*
Search online and it’s possible to find properties for sale priced in crypto, although numbers are still very small.
Is buying or selling a property with cryptocurrency a good idea?
There are a couple of reasons why buying or selling property using crypto might seem attractive. Cryptocurrencies are anonymous and independent. Their value isn’t necessarily linked to conventional currencies like the pound.
But a big issue with using crypto would be establishing a value. How many Bitcoins would you ask for your house or flat? Remember that cryptocurrencies can be very volatile too.
Another issue would be finding a buyer (or seller) who also wants to use crypto. Because not many people would be willing to do so, the market for your property would be really small. That might mean you wouldn’t get the very best price for it.
There could also be snags with complying with anti-money laundering regulations. You may also face issues assessing how much Stamp Duty or other taxes like Capital Gains Tax you might owe.
In short, while buying or selling a property using cryptocurrency is possible, it probably isn’t a great idea – at least just yet. You should definitely take expert financial and legal advice if you are considering it.
If you’re considering selling your home, we’ll be glad to offer you a free market appraisal and valuation in good, old reliable pounds sterling, of course. Call or message us today.
If you know someone who would find this article interesting, please feel free to share it with them.