Thoughts about the person renting an apartment with Bitcoin in Argentina

[nullama]

The Minister of Foreign Affairs of Argentina, Diana Mondino, recently confirmed that in Argentina you can make contracts paid in Bitcoin:

https://bitcoinmagazine.com/business/argentinas-minister-of-foreign-affairs-affirms-bitcoin-acceptance-for-contract-agreements

Recently, there was a story about a guy in Argentina who did just that to rent an apartment:

"A guy just signed a contract to rent an apartment using bitcoin, likely a world first"

Here is the original story, in Spanish: https://www.pagina12.com.ar/703173-en-rosario-se-firmo-el-primer-contrato-de-alquiler-en-bitcoi



The first thing to consider is that the price in the contract is set in USDT, not even USD. The contract says 100 USDT, which is today the equivalent of $100. Here is the original in Spanish that mentions this:

Según consta en el contrato, el monto del alquiler será de la cantidad de bitcoins (BTC) equivalente a "100 Tether tokens USDT", una criptomoneda "estable" o stablecoin que cotiza 1 a 1 con el dólar. Es decir, 100 dólares, o 0,0021 BTC.

Now, first of all that sounds very cheap for a full month of rent, but the most interesting part to me is that the price was set in USDT, which can at any time depeg: https://cointelegraph.com/news/how-and-why-do-stablecoins-depeg So, any month, those 100 USDT can represent a completely different amount of USD, which will then be converted to BTC.

The second thing to highlight here is that they are not paying the BTC directly to the other person wallet. They are using a centralized exchange called Fiwind, and basically they deposit their Argentinean Peso into the platform, exchange it to BTC, and then transfer the BTC in the platform to the landlord, monthly:

Así, el inquilino deberá, mensualmente, transferir los pesos argentinos "que estén en la cuenta bancaria o billetera virtual del usuario" a la plataforma Fiwind, y una vez allí convertirlos a la criptomoneda deseada (en este caso, Bitcoin). Luego, ese monto en criptomoneda será transferido al propietario en la misma plataforma, sin costo.

Apparently the centralized exchange is part of the contract, so maybe they are doing it this way to get all their fees from this person, and get some PR on the side.

It is a bit of a shame really, when they could have easily just paid directly from one person to another. The details of this story reveal that it's not really a direct peer to peer transfer, but a convoluted payment involving a third party. Might as well just pay it directly in Argentinean Pesos, or USD since they are setting it to $100 USD.

Missed opportunity. I think the main point here is setting the price in USD equivalent instead of the Argentinean Peso which devalues a lot over time.

[SquirrelJulietGarden]

People can purchase or sell their real estates with bitcoin and renting is thing smaller than that.

https://cryptorealestate.cc/property-city/middle-east/

Middle East is a hub for pioneer and adoption of Bitcoin and Cryptocurrency recent years. Middle East & North Africa: Crypto Takes Hold as UAE Leads the Way in Promoting Regulatory Clarity

In the USA, in 2017, Bitcoin is finally buying into US real estate.

[Reatim]

Now, first of all that sounds very cheap for a full month of rent,

Did you consider that they have a different currency, and their economy is not the same as the one in us. So 100 usd might not be as cheap as you think it is in their country. Usd is a very expensive currency.

The second thing to highlight here is that they are not paying the BTC directly to the other person wallet. They are using a centralized exchange called Fiwind, and basically they deposit their Argentinean Peso into the platform, exchange it to BTC, and then transfer the BTC in the platform to the landlord, monthly:

Well it's nice to see that bitcoin is being accepted in contracts as big as monthly rent. I hope it gets normalized that bitcoin is used for transactions as this. I think holding bitcoin first and then paying eventually will be the ideal situation since a monthly rent is constant.

Missed opportunity. I think the main point here is setting the price in USD equivalent instead of the Argentinean Peso which devalues a lot over time.

I agree it is quite confusing but since I am not from Argentina I don't know how their economic situation is right now.

[yudi09]

OP. Any news that reports about businesses or other things that can be paid for using Bitcoin is always fun.
We know Argentina with its new president as someone who likes Bitcoin and based on this, it makes it easier for business people to use Bitcoin as a means of payment. It may not be as total as the implementation in El Salvador, but policies like this report have made it easier for citizens to implement them.

We continue to hope that many countries can make Bitcoin what it should be. We are also proud here that we can still make Bitcoin a commodity asset.

[Moreno233]

It was reported months before the elections that brought in Javier Milei that he is pro Bitcoin and will turn Argentina into another El Salvado. I guess we are seeing that come to reality today because for an active government official to rent apartment with Bitcoin in a country where the president is restructuring the governance, is an indication that Bitcoin is a welcomed in the country. Since late last year, Argentina approves Bitcoin as its official currency, no wonder Elon Musk is passionate about Argentina because whether we believe it or not, Elon Musk has become the new face of freedom. What this development will do is that by the time more countries see the success recorded by Bitcoin in the countries where it has been allowed to flourished, they will begin to shift towards legalizing Bitcoin and this is something huge for Bitcoin and the Bitcoin community.

[pinggoki]

That could be a really good move for a landlord to do that but as a renter, I'd probably only consider renting with paying bitcoin if I can choose every month how I will pay it because that way, it would be in my advantage that I can probably pay less rent when I pay in bitcoin when the price is constantly going up and then pay in fiat when the price isn't in my favor and the value of bitcoin that I'm paying is too high despite being so little when it comes to it's value in fiat. I applaud this good move because it's really something that would make things much easier for some people and at the same time, makes it a good thing for bitcoin because it's still bitcoin adoption.

[m2017]

Recently, there was a story about a guy in Argentina who did just that to rent an apartment:

Well, what else can people do when the national currency (peso) is going to hell? In my opinion, this is a win-win solution for both the tenant and the lessee. The trend for the use of cryptocurrencies in Argentina can only intensify (due to the deteriorating economic situation).

The first thing to consider is that the price in the contract is set in USDT, not even USD. The contract says 100 USDT, which is today the equivalent of $100. Here is the original in Spanish that mentions this:

Well, this is a way to protect against the volatility of bitcoin, but why was USDT chosen? Do they really believe in the power of USDT, more than a USD? The value of the second is at least ensured by the real economy of one of the leading countries.

The second thing to highlight here is that they are not paying the BTC directly to the other person wallet. They are using a centralized exchange called Fiwind, and basically they deposit their Argentinean Peso into the platform, exchange it to BTC, and then transfer the BTC in the platform to the landlord, monthly:

That is, purchased bitcoin for pesos are moved from wallet №1 to №2 within only this platform? As a result, №2 probably exchanges bitcoin for pesos and brings it into real world? If this is so, then this whole scheme looks rather absurdly dubious.

Apparently the centralized exchange is part of the contract, so maybe they are doing it this way to get all their fees from this person, and get some PR on the side.

And also, receive their commissions for each stage of the conversion.

It is a bit of a shame really, when they could have easily just paid directly from one person to another. The details of this story reveal that it's not really a direct peer to peer transfer, but a convoluted payment involving a third party. Might as well just pay it directly in Argentinean Pesos, or USD since they are setting it to $100 USD.

If bitcoin continues to be used in the same way, then this digital currency is worthless (not directly P2P, but through meaningless layers of exchanges).

[redsun114]

OP. Any news that reports about businesses or other things that can be paid for using Bitcoin is always fun.
We know Argentina with its new president as someone who likes Bitcoin and based on this, it makes it easier for business people to use Bitcoin as a means of payment. It may not be as total as the implementation in El Salvador, but policies like this report have made it easier for citizens to implement them.

We continue to hope that many countries can make Bitcoin what it should be. We are also proud here that we can still make Bitcoin a commodity asset.

If I'm living on that country, I will not be excited and start using BTC directly but I will confirm the news first if it's an official one, only to be safe. He likes BTC but it doesn't mean that he will now also make it legal even though it's weird because that is not his main priority. There is still a chance later on for this. What we only need is patience.

There are countries in which one side of BTC is only accepted. For some it was as a currency, while the other is as an asset. If you're from a country that only accepts BTC as a commodity or an asset, not all are still going to proud or happy because not all are like you, but some only likes to use a BTC as a currency.

[PrivacyG]

So this is actually NOT renting an apartment for Bitcoin or allowing contracts to be signed for Bitcoin.

It is like I told you I am renting my apartment for Gold.  But the price is calculated in Dollars and in order to pay you will have to sign up on eToro, deposit Dollars, buy Gold Stocks and send me some.

This person is seeking attention only.  Or the news website.  Or who ever tries to do it.  This is B S.

[Zaguru12]

That could be a really good move for a landlord to do that but as a renter, I'd probably only consider renting with paying bitcoin if I can choose every month how I will pay it because that way, it would be in my advantage that I can probably pay less rent when I pay in bitcoin when the price is constantly going up and then pay in fiat when the price isn't in my favor and the value of bitcoin that I'm paying is too high despite being so little when it comes to it's value in fiat. I applaud this good move because it's really something that would make things much easier for some people and at the same time, makes it a good thing for bitcoin because it's still bitcoin adoption.

I think this is why the payment was fixed in a stable coin rather than volatile one like bitcoin. I think if the option was to be left in your hands Alone the price fluctuation will cause problems, because you will definitely be on the advantage in any of the options picked. Personally what I will do is regularly stack up bitcoin and see if they appreciate so as to cover for my future payments. But the bigger issue is having to buy specifically from that exchange.

There are countries in which one side of BTC is only accepted. For some it was as a currency, while the other is as an asset. If you're from a country that only accepts BTC as a commodity or an asset, not all are still going to proud or happy because not all are like you, but some only likes to use a BTC as a currency.

I don’t think there is any country that accepts bitcoin as an investment only and not as a currency. The only two things I have seen is officially legalizing it or placing restrictions on it. The choice of what to treat it as, is always the investors choice. Currently many people like to lean towards it as an rather than a currency

[Nwada001]

So this is actually NOT renting an apartment for Bitcoin or allowing contracts to be signed for Bitcoin.

It is like I told you I am renting my apartment for Gold.  But the price is calculated in Dollars and in order to pay you will have to sign up on eToro, deposit Dollars, buy Gold Stocks and send me some.

This is exactly what most business owners who claim they accept bitcoin and crypto currency as payment options do: they don't directly accept bitcoin; they indirectly just promote a particular platform or exchange in their own little way. In my country, here are a few local shops that are crypto-friendly and accept payment only when you are sending directly from your Binance Pay to theirs. 
 
My question is: why are they going through all those long processes or even deceiving themselves when they can just conclude and seal a contract using their local fiat, since there is no privacy protection or even decentralisation in that transaction, and if the person receiving the money needs some Bitcoin or any crypto, they can go ahead and purchase it with the money received from the business.

[Dunamisx]

The Minister of Foreign Affairs of Argentina, Diana Mondino, recently confirmed that in Argentina you can make contracts paid in Bitcoin:

Am excited seeing this because the use of Bitcoin is increasing day by day, it is getting more better and easier with the use of bitcoin on our daily transactions, the more we keep having the support like this will also increase the rate of bitcoin adoption and also encourage other countries to make a positive turn towards governments in making bitcoin a legal tender.

[passwordnow]

AFAIK, Argentinian peso is experiencing hyperinflation and that's why any other currency that people there will have is they'd convert it to a better currency like USD. So, if they're going to receive in USDT or in BTC, that's much better and they're doing the landlords a favor. Another factor is about the landlord knowing cryptos and that's why it's fine since there is an agreement and the renter will have no problem explaining that his payments are going to be with these cryptocurrencies which logically can be said as another form of money, it has monetary value and liquid so there won't have any problems for the landlord if he wants to convert it however he want and as soon as he receives the payment.
I hope that more establishments and landlords will do this, not just there but also in every part of the world.

[Assface16678]

OP. Any news that reports about businesses or other things that can be paid for using Bitcoin is always fun.
We know Argentina with its new president as someone who likes Bitcoin and based on this, it makes it easier for business people to use Bitcoin as a means of payment. It may not be as total as the implementation in El Salvador, but policies like this report have made it easier for citizens to implement them.

We continue to hope that many countries can make Bitcoin what it should be. We are also proud here that we can still make Bitcoin a commodity asset.

Well, it's true that the government will slowly implement crypto currency in the community or in the country, but also this kind of movement should be planned and thought through thoroughly because we know how volatile a crypto currency can be, so there may be a conflict for both the customer and owner of the business. If this is about the land of rent, then this has to have a proper contract with a proper handling of bitcoin because there will be no fixed amount in crypto currency, so anytime the rent fee could change, and there should be a way to handle that situation in a contract to avoid conflict. Anyway, in conclusion, this article or news is good because we can see now that the government itself is taking bold and new steps in order to give people more options and be more open to new innovations and opportunities.

[yazher]

Am excited seeing this because the use of Bitcoin is increasing day by day, it is getting more better and easier with the use of bitcoin on our daily transactions, the more we keep having the support like this will also increase the rate of bitcoin adoption and also encourage other countries to make a positive turn towards governments in making bitcoin a legal tender.

One of the best things to happen in the crypto industry is this one because it will further increase popularity and convenience when you have bitcoins and that's the best thing we want to have right now, especially with all of the non-sense they throw on crypto where they always have bad issue with it, more adaptations and implementations to make it one of their accepted payments in their businesses is good and surely it will be followed by the others who have been thinking about it, it just need someone to begin it and this is the right time for them to show their interest as well and make bitcoins one of the accepted payment in their companies too.

[Dzwaafu11]

This is exactly what most business owners who claim they accept bitcoin and crypto currency as payment options do: they don't directly accept bitcoin; they indirectly just promote a particular platform or exchange in their own little way. In my country, here are a few local shops that are crypto-friendly and accept payment only when you are sending directly from your Binance Pay to theirs.

yeah. Many companies try to include bitcoin as part of their payment because they know how the world is turning, and many youths have already learned the concept of bitcoin and what it can be used for, so I think they feel using Bitcoin will attract many people's attention to patronize their brand. This is not a bad practice, but it may be bad to me because they also take bitcoin to the next level in that locality because many people from there and even learn about it after hearing how easy and secure their money will be if they use it as a means of payment, and those who are yet to believe in bitcoin may do so because they are seeing it everywhere, so they will view it as a scam again.

My question is: why are they going through all those long processes or even deceiving themselves when they can just conclude and seal a contract using their local fiat, since there is no privacy protection or even decentralization in that transaction, and if the person receiving the money needs some Bitcoin or any crypto, they can go ahead and purchase it with the money received from the business.

Did we need privacy before people accepted bitcoin in their store or any business center? NO. Because it is not necessary for the seller to use only Bitcoin as another means of payment for their store, as you can see, there is no need to say that what they are selling must be private before we send bitcoin as a fared currency, even though we know that bitcoin transactions require much privacy, but I don't think this will be an issue. The person who is selling should be the one who will protect the wallet he or she uses to receive the bitcoin.

[SquirrelJulietGarden]

Did we need privacy before people accepted bitcoin in their store or any business center? NO. Because it is not necessary for the seller to use only Bitcoin as another means of payment for their store, as you can see, there is no need to say that what they are selling must be private before we send bitcoin as a fared currency, even though we know that bitcoin transactions require much privacy, but I don't think this will be an issue. The person who is selling should be the one who will protect the wallet he or she uses to receive the bitcoin.

When you spend your bitcoin in public trades, you know that there is no guarantee for your privacy from your trade partners that can be individual or a company, store, whatever.

Your privacy must be secured by yourself, on how you store your bitcoins, how you organize your bitcoin fund storage in inputs and outputs. Outputs include how you spend your bitcoin for an apartment renting payment.

The company, the store can give you promise about privacy but first, you can not trust anyone to secure your privacy. Even if they are sincere with their promise, their security, data base can be hacked and your information will be leaked.

Privacy recommendations for Bitcoin transactions.
https://blockchair.com/bitcoin/privacy-o-meter

Don't send round numbers
Don't send round amounts. Instead of sending 0.1 BTC, send 0.10125

Use Bitcoin Mixers
Mixers add an additional layer of privacy to a transaction to avoid exposing user identities.

Avoid reusing wallets
Don't send your Bitcoin change to the same address you use for sending bitcoins.

Avoid including many of your addresses in one transaction
Any time you can, try not to send BTC from your various Bitcoin addresses.

Avoid using "send everything" option
If you are withdrawing funds from an exchange, it is okay.
If you're moving funds to another wallet, do not transfer the whole amount to another address. It greatly compromises your privacy.

[Maus0728]

Pretty neat if you ask me but the concern is that they can be targeted by malicious elements given that thieves and burglars at the least have a knowledge about bitcoin and that they might assume that those people investing in them probably have a lot of money in them to be able to get that, there's also the matter of privacy, if you pay your rent with bitcoin, wouldn't you be exposing your identity to your landlord? Including your wallet address, hopefully this is just a concern that won't really happen at all but it's still worth talking over.

Besides my concerns, I think that bitcoin payment for your rent in Argentina might be a big help given that the inflation in the country is constantly growing every single day, you're better off hedging yourself against inflation rather than keep your money that would only serve to go down in value the next day, this is a good step in the right direction in my opinion.

[Davidvictorson]

I was one of those who celebrated this news the first time it was published on the internet. I think that this topic has thrown in more light and created a solid understanding of what it actually is. I have no problem with the process of exchange to protect the value of the asset against market force, the only problem I have right here with it is the government making it mandatory for he citizens to use that one exchange for it. In my estimation it reeks of autocratic governance  and it is absolutely not ok. Maybe that is their own small measure to regulate it crypto. However, what they did not consider is that privacy of their citizens on such platforms.

[Ben Barubal]

     This is actually good news, and I agree with what Milae said that the bank is the real scam, in which it is really true that the depositor trusts the bank, and yet in the end, the trust suddenly freezes our account just because we deposited a large amount in their bank.

     If that's why Bitcoin has become the real answer for people who have an interest in having it, then that incident is not new because there are other countries that are doing
something similar in that regard.