Chinese early bitcoin adopters are using their cryptocurrency wealth to buy real estate abroad. According to a U.S. real estate crypto startup, this lets them move their money faster rather than making their own bank account.
Mr. Guo Hongcai, a Chinese resident of Shanxi province, is one of bitcoin’s early adopters. This beef salesman-turned millionaire is moving his fortune out of the country by buying real estate abroad.
He said that he sold his 500 BTC in the U.S and used it to buy a 100,000 square-foot mansion in California. He also owns a Rolls-Royce that he purchased using his stashed BTC. Mr. Hongcai told CoinDesk that selling bitcoin in the US is very normal and after selling it, you can buy anything that you want.
With Chinese regulators tightening its grip on the industry business in mainland China, these crypto millionaires are trying to diversify their holdings and some of them are entering the foreign real estate markets. Usually, these crypto millionaires buy real estate directly with cryptocurrencies and some, just like Mr. Hongcai, use it to get foreign fiat without the need for a bank.
Based on a U.S. real estate crypto startup, Propy and its CEO Ms. Natalia Karayaneva, they are getting requests from $50,000 – $100,000 and the latest request they got is for a Silicon Valley real estate that costs $3 to $4 million.
“We’re seeing that more and more people are willing to buy properties with cryptocurrencies because it’s getting easier to get their money out of the country using bitcoin, rather than establishing a bank account based in Hong Kong and getting their money out of the country using business channels.” – Ms. Natalia Karayaneva, CEO, Propy
Ms. Karayaneva added that fintech locations in London or California’s Bay Area are a crowd favorite. She added that they get 50,000 monthly views, which is around half of the website’s traffic, from China.
In the Philippines, Filipino fintech startup, AQwire, recently inked its partnership with SCI ventures to handle cryptocurrency payments in its real estate blockchain-powered platform.