Crytocurrencies such as bitcoin are starting to gain adoption in UK property sales.
Data from Rightmove showed that four in 10 sellers are reducing prices, with London’s prime property market in the midst of a downturn.
But one £17 million mansion in Notting Hill has seen unprecedented interest since it went on sale in October.
“Last week we had 15 viewings,” said Lev Loginov, co-founder of property firm London Wall, which is selling the property. “It’s coming from Asia. I don’t think we’ve had anybody older than 30.”
The house is attracting interest from an unusually young demographic because it is being sold in bitcoin. Other houses in England have been offered for sale in the cryptocurrency before, but not on this scale, and not exclusively in bitcoin.
“It’s lots of young people who got involved in cryptocurrencies at an early stage,” Loginov said. “Most of them made money from mining cryptocurrencies, and basically they’re looking to acquire assets. ”
Considering news of the sale was picked up by dozens of media outlets — Loginov says he has given over 50 interviews in the past four weeks, and been featured by Reuters, Sky, even American site CNBC — it’s easy to see why cynics think this new generation of bitcoin property vendors might have marketing, rather than the virtues of crypto-currency, at the forefront of their mind.
Even news of a £375,000 new-build in Colchester, Essex managed to generate national headlines once it had a Bitcoin price tag attached.
So is free publicity the name of the bitcoin property game? Loginov says otherwise.
“The biggest benefit for us is that we as a company, throughout this process, figure out how to process property transactions in bitcoin,” he told Business Insider.
“We now know exactly how it works, what we have to do, and the steps we have to take. We believe cryptocurrencies are going to be the future.”
He notes other benefits. He says a bitcoin transaction is easier and cheaper from a technical point of view. A firm in the United States checks the legitimacy of his prospective bitcoin buyers, a process which Loginov says is “much cheaper” than the equivalent process for tracking fiat money, such is the transparency of blockchain.
Loginov said the reason they don’t simply convert their cryptocurrency holdings into fiat money is that “many of them do not have the mechanics to do it.”
The cost of processing bitcoin into fiat currency on that scale is also significant, which likely makes doing so less attractive.