One of Northern Ireland’s leading residential property developers, Hagan Homes, is going to accept Bitcoin as a payment method.
It is the first home-builder in Northern Ireland to accept the digital currency as means of payment.
The move is part of the company’s effort to respond to a changing market.
Bitcoin is one of hundreds of types of cryptocurrencies. It is the world’s first totally decentralized digital payment system. It functions without the oversight or monetary control of a central bank.
Statement by Hagan Homes
According to the Belfast Telegraph, Managing director Jamesy Hagan said: “Bitcoin is an innovative new payment method and essentially a new kind of money. It is very similar to a cash transaction.
“There has been a significant growth in the use of Bitcoin worldwide and our acceptance of this new channel reflects our willingness to respond to the market.”
Hagan acknowledged the volatility of Bitcoin and the challenges of accepting it as a form of payment.
“Of course, there are some risks to using Bitcoin for payment due to the cryptocurrency’s volatility, but buyers and sellers are finding creative ways to deal with these challenges,” he added.
“By incorporating the learning from our peers into our approach we can embrace this innovation.”
First home sold for 2.739 Bitcoin
The first sale using Bitcoin was a 1.4 acre home in Lake Tahoe, California, in 2014. The property was sold for 2,739 Bitcoin, which BitPay coverted to $1.4 million in cash. Since then a number of other real estate listings are accepting or requesting cryptocurrency for payment.
In New York, Magnum Real Estate said it would accept Bitcoin for its apartments in Manhattan’s East Village.
“Our buyer has evolved, they’ve moved from mom and pops to young people who want to pay with various forms of payment,” Ben Shaoul, president of Magnum Real Estate Group, told CNBC.
Video – What is a cryptocurrency?
If you would like to know more about what cryptocurrencies are and how they operate, watch this Market Business News video.