The real estate industry is increasingly embracing bitcoin as a form of payment. Most recently, hedge fund manager Claudio Guazzoni de Zanett has put his Manhattan townhome on the market for nearly $30 million in USD or $45 million in cryptocurrencies, according to a story in The Wall Street Journal.
Zannett is hedging his bets, attaching a 40% premium for paying in bitcoin versus fiat money to offset the volatility in the BTC price. Zannett, who is at the helm of the hedge fund that bears his name, is willing to take bitcoin, Ethereum or Ripple. Zannett told the WSJ –
“I’m a true believer in these networks, but it’s very volatile. They could be down 60% in two weeks.”
Zannett is used to placing bets on high-tech companies, and according to his LinkedIn profile, he also founded Zannett Cryptocurrency Group. He appears to have been investing in cryptocurrencies and blockchain since at least 2015.
Hedge funds that are invested in bitcoin and altcoins have been taking it on the chin of late, with leading crypto funds such as Pantera Capital having suffered declines of more than 45% in March, according to CNBC. Pantera generated returns of a whopping 25,000% since inception through year-end 2017. Pantera’s Chief Investment Officer pointed to the volatility.
Zannett’s Town House
But that’s not enough to keep Zannett away. His house has six levels and boasts more than 12,300 square feet. It’s more than 20-feet wide and is designed with marble and limestone. The townhouse is located in Manhattan’s wealthy Upper East Side neighborhood. The lucky co-listing agents are Valerie A. Lettan of Douglas Elliman and the Corcoran Group’s Carrie Chiang, who presumably will have to split the commission check.
Bitcoin is not just taking the New York real estate market by storm. Across the United States in Colorado, a buyer used his bitcoin profits to purchase a $1.1 million home. The realtor, who described the seller as “trusting” and the transaction as “smooth,” told a local publication that she “had to be educated on what [bitcoin] was.”
The buyer had to prove his ability to pay for the home, which he did by providing pictures of his investment portfolio to the seller. While the actual transaction occurred with fiat money, the buyer incrementally liquidated his crypto holdings to offset fees and taxes and directed the funds into a checking account, which he wired to the seller at the time of the closing.