Richard Hilton, Chairman of luxury real estate company, Hilton & Hyland, and father of celebrity Paris Hilton, is selling a $40 million mansion via a cryptocurrency real estate auction. The Palazzetto mansion is located in Rome and features a total of 11 bedrooms and 15 bathrooms. The mansion also contains a gym, movie theatre, spa, and three kitchens. The owners of the mansion sought out the help of Hilton and Hyland in the sale.
The auction is set to take place on June 28, 2018, and Hilton is partnering with Propy to host the event. People have to register with Propy and can bid in cryptocurrency. According to Richard Hilton, a long time blockchain advocate, ”The auction shows real estate’s growing trust in blockchain and provides crypto investors an opportunity to diversify and solidify their portfolio with a trophy asset.”
An increasing number of real estate agents are accepting cryptocurrency payments for transactions, and more and more people are willing to accept digital currency as payment for their property. This year, Ireland’s largest real estate developer, Hagan Homes, started accepting Bitcoin as payment. In February 2018, Aston Plaza and Residences in Dubai sold 50 apartments to Bitcoin owners. In Miami, 455 Bitcoins were exchanged for a property for a value of $6 million at the time. However, this will be the world’s first blockchain auction and also the most expensive home to date purchased using cryptocurrencies.
The purchase of property via a cryptocurrency real estate auction is of huge significance, given how large the market is. It could serve to boost the transaction volume of Bitcoin, which is necessary to stabilize the cryptocurrency so that it becomes more tenable as a medium of exchange.
At present, because most people are holding on to their cryptocurrency and outlets to spend it are limited, though increasing, the price is easily affected by large trades which can drive the price up or down. However, the more that it is spent, the less affected it will be by these trades, meaning the price will be less volatile on a day-to-day basis. Such a blockchain auction is a marker of the legitimacy of cryptocurrency and should serve to increase integration as more landlords and real estate agents accept cryptocurrency as payment.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.