Bitcoin is one of the hottest topics of the year so far. People everywhere are ditching traditional investing accounts and trading them in for cryptocurrency. You may have heard about Bitcoin online or through a friend, and you may have numerous questions and could be wondering, can I buy a house with bitcoin? The answer is probably not, but don’t rule out Bitcoin just yet.
What is Bitcoin?
Bitcoin is a cryptocurrency (digital currency) in which peer to peer trading occurs. These transactions are verified using a public ledger known as a blockchain and have no central bank. This system was developed by an unknown person or group of people under the alias Satoshi Nakamoto. Most believe that Satoshi has kept their identity anonymous because they’re alleged to own over 980,000 bitcoins which are valued currently at $10925.00 USD per coin. This essentially means that Satoshi could sell at any point and completely crash bitcoin.
Why can’t I buy things with Bitcoin yet?
Bitcoin wavers in value frequently. It is not uncommon for bitcoin to drop thousands of US dollars in mere minutes, which means that it would be very difficult to replace cash in commerce due to its unstable value.
Can I finance a house with Bitcoin?
Since lenders are risk-averse and Bitcoin has a fluctuating value, most mortgage companies are not jumping on the “Bitcoin Bandwagon”. On the other hand, Fannie Mae (FNMA) and Freddie Mac (FHLMC) said they will allow the use of Bitcoin funds as a down payment. However, funds must be transferred into a U.S. Bank Account and full paper trail documentation is required.
Should I use Bitcoin?
This can be a tricky question and process, but so is the rest of the home loan process. Give us a call today and let us answer any of your home ownership questions.
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