The Cryptocurrency craze reached a new height when a Miami resident decided to sell their “spectacular” penthouse for nearly a half a million dollars’ worth of bitcoins.
As reported by Business Insider, the 1 bedroom, 1.5 bath penthouse is listed on several real estate sites for $33 with the description “PRICE? ONLY ACCEPTING (sic.) BITCOIN.” Yet, due to the popular crypto-coin surging to 1,500 percent in comparison to the U.S. dollar, as of Wednesday (Dec. 13), 33 bitcoins are equal to about $547,000, making this price a spiked increase for a property that – according to public records – last sold for $315,000.
While this might come across as a bit extreme, this Miami seller is not alone. During a sit-down with CNBC, securities regulator Joseph Borg explained that this process of using real estate to supplement stock in cryptocurrencies is more common than one would think.
“We've seen mortgages being taken out to buy bitcoin,” Borg said in response to the crypto craze. “You're on this mania curve. At some point in time, there's got to be a leveling off.”
Because of this “mania,” investors are scrambling to gain as many crypto-coins as possible before it’s too late. Yet due to the multiple unknown risks associated with these coins, Borg insists that this new form of currency is not something everyone should buy into.
During an interview with Power Lunch, Borg warned that a “(cryptocurrency) is not something a guy who's making $100,000 a year, who's got a mortgage and two kids in college ought to be invested in.”
However, despite Borg’s advisory, the demand for cryptocurrencies is steadily increasing. And with various crypto-coins, like bitcoin’s increasing rival, litecoin (its stock rose more than 5,000 percent this year), gaining in popularity, the longevity of cryptocurrency is something even Borg can’t deny.
“Cryptocurrency is here to stay. Blockchain is here to stay,” he admitted. “Whether it is bitcoin or not.”