Now here is something that you don’t see every day: A homebuyer making a seven-digit profit by purchasing a residential property.
According to a report in The Coin Telegraph
, an individual seeking to purchase a $4 million residence in California contacted BitPay, an Atlanta-based Bitcoin payment service, to coordinate the transaction entirely in Bitcoin. The buyer secured $4 million in Bitcoin at a time when the digital currency was worth approximately $750 on the global Bitcoin exchange market.
But at the time the buyer initiated the final payment, Bitcoin’s value skyrocketed to $1,160—an increase that was fueled, in large part, by the devaluation of the Chinese yuan and the December rate hike by the Federal Reserve. Thus, the buyer—who was not publicly identified—wound up with a $1.3 million profit in the currency exchange rate.
“The buyer actually ended up making about 25 percent in the currency exchange rate, essentially, in the appreciation,” said Sonny Singh, chief commercial officer at BitPay. “He got a house for pretty much 25 percent cheaper.”