A million dollar home in the San Juan Islands is expected to hit the market later this month, and the sellers don't want a single dime for it.
Instead, they're asking for payment by Bitcoin, the digital, worldwide currency. If the sale goes through, it will likely be the first of its kind in Washington state, real estate experts said.
"It's just a better currency for today's transactions, which are all electronic. No one's using cash anymore," said real estate agent Matt Bohner, who will be listing the house. "The writing's on the wall that this is going to win out over time."
Bitcoin, a virtual currency developed in 2008, has risen to popularity in recent years. It isn't backed by a central bank or government and has fluctuated in value, but proponents argue it is a safe and easy way to tranfser funds without large bank fees.
A tech entrepreneur made a Bitcoin gift to a Washington college earlier this year, and a Lake Tahoe home recently sold for $1.6 million in Bitcoin.
The 3,500-square foot Orcas Island house should be listed for sale later this month, Bohner added.
"It is a beautiful place. We designed it ourselves and put a lot of work into it. It's paradise," said Danny Johnson, a virtual currency entrepreneur and professional poker player whose mother and stepfather built the custom home by hand. "(This sale) is the future. We want to try something new, be innovators."
The Washington State Department of Revenue, which collects real estate taxes, doesn't have any specific records that would track a Bitcoin sale, said Kim Schmanke, the department's Communications Director. Anecdotally, however, the office hasn't heard of a Bitcoin sale in Washington state.
"The state doesn't accept Bitcoin, and we haven't heard of any counties moving in that direction for property taxes either," Schmanke said by email. "So it'd be safe to say any real estate taxes or property taxes need to still be paid in... regular US currency."
Tacoma-based MerchantCoin, a point-of-sale service dealing in virtual currency, will handle the transaction once the home is sold, company representatives said.
"When you try to explain Bitcoin you get into this technical jargon. It's a learning curve. It's no different than, 'how do I set up my internet with just a 14.4k modem,' in 1994 " said Zachary Lark, one of MerchantCoin's founders. "But it is the future of digital payments. It is a way that consumers and merchants can escape the grasp of credit cards and bank fees."
Johnson said he wasn't sure his family would accept traditional currency for the home - if given the option.
"I'm sure we could negotiate a portion of it (for cash), but by and large we want crypto-currencies," Johnson added. "Unless it was some large sum above the listing price, I believe we'd like to get behind the Bitcoin curve."
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