Australian auction house opens door to bitcoin bids

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October 13 2021
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It just became a little easier for local bitcoin evangelists to buy a home using cryptocurrencies.

Australian auction house opens door to bitcoin bids

An Australian auction house has announced it’ll begin accepting cryptocurrencies like bitcoin as payment for real estate purchases.

Lloyds Auctioneers & Valuers COO Lee Hames said that the decision to support cryptocurrency payments opens up their platform to new audiences who otherwise might not be able to purchase property.

“The use of cryptocurrency as a payment method is becoming more commonly used for purchases as confidence surrounding cryptocurrency gets stronger,” he said.

Mr Hames framed the move as an extension of the company’s previous attempts to disrupt and challenge the norms of the traditional real estate business.

“This is an online auction first and we are extremely excited to offer this new technology to our ever-growing worldwide clientele base, expanding our company into a new division in a way that no other auction house has done before,” he said.

Lloyds’ announcement is reflective of a trend towards more mainstream acceptance and usage of cryptocurrencies for uses that extend beyond investing.

Bitcoin-linked debit cards are becoming more commonplace, and a recent report released by Finbold suggested that the number of bitcoin ATMs being installed each quarter has accelerated during the pandemic.

“This is a possible indicator that providers and investors are bullish on the long-term prospects of the sector,” the report argued.

However, just because Australian property investors can now open up their cryptocurrency wallets to purchase property doesn’t mean they should.

Several key practical concerns remain unresolved. For example, the high volatility of bitcoin may mean that by the time a transaction finalises, the value of the cryptocurrencies may have significantly shifted.

RMIT’s Dr Angel Zhong told nestegg that the announcement was indicative of growing awareness and confidence in the use of cryptocurrencies as a payment method.

“On the one hand, as more and more people hold cryptocurrencies, we will see more merchants accept cryptocurrencies as a transaction vehicle. This will, in turn, further boost cryptocurrencies being mainstream,” she said.

However, Dr Zhong was quick to add that there are pros and cons to the trend.

While the possibility of bitcoin-based property investment will make it easier for international investors to participate in the Australian real estate market, Dr Zhong warned that the fluctuation of bitcoins may expose the buyer and seller to fast depreciation of transactional value.

“Bitcoin and cryptocurrencies are known for their volatility,” she said.

About the author

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times.

About the author

Fergus is a journalist for Momentum Media's nestegg and Smart Property Investment. He likes to write about money, markets, how innovation is changing the financial landscape and how younger consumers can achieve their goals in unpredictable times.

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