A six-storey mansion in the prestigious area of Notting Hill is about to hit the market for £17m. So far, so normal. But on further inspection, it’s believed this property will be a first for the London property market, as the buyer will only accept payment in Bitcoin, a type of digital currency.
Current owner, Lev Loginov, purchased the mansion for £9.5m back in 2013, and has now put it on the market for almost twice the price. Back then, the property came as five separate apartments – now it’s been converted to one single residence.
Mr Loginov claims he wishes to shift perceptions on cryptocurrency like Bitcoin. He claims cryptocurrency transactions can be completed more quickly and efficiently, and it helps to circumvent banks which, he says, are introducing unnecessary overregulation. Cryptocurrency transactions are completely anonymous peer-to-peer transactions, cutting out the need for a central bank to be involved in the sale of a property.
This wouldn’t be the first time that property sellers in London have specified they would accept Bitcoin as part of a sale. But it is the first time that a seller has confirmed it’s the only payment method they will accept.
Buying property with Bitcoin raises a number of issues, the first of which being stamp duty. The sale of the £17m property in Notting Hill would mean a stamp duty payment of £1.95m would be required. So how do you pay HMRC in Bitcoin? Mr Loginov has not yet figured this out – he claims top London property agents should be able to figure out a solution for cryptocurrency transactions of this type.
There’s also an issue with the constantly fluctuating value of Bitcoin. Just a year ago, one Bitcoin was worth £500. It’s now worth £4,606, and it changes by the day. Cryptocurrencies are certainly prone to volatile movement, which could be an issue when it comes to settling on an exchange rate.
Will Bitcoin property sales become a trend for the future, or is this just a flash in the pan? Only time will tell. With experts estimating that cryptocurrencies are now bigger than Goldman Sachs, it’s likely we’ll see more enormous Bitcoin transactions like this in the coming years.
