On Sept. 6 a UK home developer announced that they were going to accept Bitcoin as a down payment for the purchase of a home. And while this action does not exactly turn Bitcoin into a complete medium of exchange or legal tender since the cost of the house is still going to be denominated in Pounds, it does propagate the monetary status of Bitcoin as a legitimate form of collateral.
However since this move will only facilitate the use of Bitcoin in the process of a down payment and not in the future obligation of a mortgage, the question that has to be asked is whether this is a simply a desperate gimmick by Britain to keep their housing bubble from imploding?
A UK co-living company has announced that it will begin accepting down payments made in bitcoin, according to CoinTelegraph, making it that much easier for traders hooked on effortless, outstanding returns to speculate in another bubble-prone market: UK housing.
Co-living pioneer The Collective announced the decision on Tuesday, saying it’s the first developer that will accept payments in cryptocurrency. The company added that it’s exploring how to accept rental payments in bitcoin, which it hopes to implement later in the year. It said that its decision to accept bitcoin was related to demand from international clients.
The Collective’s chief executive and founder Reza Merchant said the decision was a bold move for the UK property market.
It’s a major step indeed. Housing prices in London have risen 65% since 2011, compared with bitcoin’s more-than 300% climb since the beginning of the year. But we imagine some less risk-averse bitcoin investors might be attracted to the deal, reasoning that it’s a smart way to lock in their investment returns.
But London property values might not be as invincible as the world thinks.
UK’s Land Registry data for three London boroughs shows transaction volumes in London are at all-time lows. Back in December asking prices in London dropped 4.3%, with inner London down 6%. More exclusive areas dropped by as much as 10%. - Zerohedge