The luckiest person in the world might be an unidentified person who wanted to use bitcoins to buy a house in California. That individual made $1.3 million because of bitcoin’s spike in value in December and January.
The buyer wanted to use $4 million worth of bitcoins to buy a house in California, Coin Telegraph reported. To accomplish that goal he or she asked Sonny Singh; the Chief Commercial Officer at payment processor BitPay, for help.
Singh arranged the transaction early in January just as bitcoin prices were going through the roof. That meant the buyer was able to get the house and make an extra $1.3 million on bitcoin’s price spike.
“The buyer actually ended up making about 25 percent in the currency exchange rate, essentially, in the appreciation. He got a house for pretty much 25 percent cheaper,” Singh said.
The buyer made the extra money because bitcoin was trading at $750 apiece when the transaction began but shot up to $1,160 in early January before collapsing. Even at the lower price the buyer still made money because bitcoins were trading at $960.22 on January 31, 2017.
Was it the largest Bitcoin Purchase Ever?
The house offer Singh described might also be one of the biggest bitcoin purchases ever. If Singh is correct this deal was four or five times larger than some of the bitcoin purchases we’ve heard about such as a $100,000 Tesla model S, $500,000 villa in Bali, or a $200,000 Lamborghini Gallardo super car.
After news about this goes viral, many more people are likely to line up to make big purchases and buy real estate with bitcoin. Especially if they think they can make a 25% profit on the deal.
One has to wonder how many more big bitcoin purchases are going on out there and how much more people are making off them. If this continues bitcoin might become the real estate purchase medium of choice for those with lots of extra cash on hand.