British entrepreneurs Michelle Mone and Doug Barrowman have launched a real estate development in Dubai priced in bitcoin. This is not the first real estate transaction in bitcoin, but it is the first major one.
First Bitcoin Project Concluded in August 2017
In August 2014, a buyer paid $1.6 million in 2,739 bitcoins for a 1.4-acre piece of land in a luxury estate community in North Lake Tahoe in California. This was one of the largest early transactions in bitcoin, but it was not the first. Five months earlier a secret buyer purchased a villa in Bali for 800 bitcoins. These transactions were conducted by converting bitcoin into U.S. dollars to make the purchase.
The real bitcoin-only estate deal is considered Ivan “Paychecks” Pacheco deal who transferred 17.741 bitcoins ($275,000) to a seller buying a seven-bedroom condo in Miami in August 2017. The seller was Michael Komaransky who listed his home in Miami’s wealth Ponce Davis neighborhood for 6.5 million dollars which could be paid either cash or bitcoin. The transaction was concluded exceptionally in bitcoin.
Dubai Deal – First Major Development where You Can Purchase in Bitcoin
What is stunning about the Dubai deal is the massive extent of the project. The project spans more than 2.4 million square feet. Some 150 apartments will be sold in bitcoin. Studio apartments are priced starting from 30 BTC or $133,918.
The luxury development is worth 250 million pounds ($325 million), and the owners are readily accepting bitcoin for the transaction.
“This is the first major global development where you can purchase in bitcoin,” British entrepreneurs Michelle Mone who stands behind the project told CNBC in an interview, saying “previously there’s been an apartment here and there’s been a house here and there, but never a £250 million development, so it’s really exciting to be involved in.”
Mone’s partner Barrowman believes bitcoin is a “mainstream” means of investment. “I’ve been invested in the crypto world for the last couple of years really, and it’s a sector I’ve watched grow and emerge,” Barrowman told CNBC in an interview.
Mone said she would not be getting involved in bitcoin if it wasn’t a trustworthy investment. “It’s the currency of the future. And I think because everything is logged and registered, everything’s transparent, that I wouldn’t be getting involved in it — especially from the House of Lord’s element, I’m a Baroness — so I wouldn’t be getting involved in it if it was a kind of ‘dodgy’ industry,” she said.
Dubai Project to be Completed by September 2019
The starting price of a studio apartment is 30 bitcoin or $133,918. The project encompasses more than 1,000 apartments and a shopping mall. It will be completed by September 2019.
The property purchases can take place in minutes from anywhere in the world. BitPay, a cryptocurrency payment platform will process the transaction. The platform provides payment tools to Microsoft and Richard Branson’s space endeavor Virgin Galactic.
Dubai development project can be the first massive real estate project opening doors to bitcoin in real estate transactions as the currency of the future.