In 2017, Venezuelan President Nicolas Maduro announced his government would be officially using state-backed petro cryptocurrency. So far the program has grown in fits and starts, and seen a few hitches, but five years later, it’s still being used. The government used it in 2019 to make small payments to retirees, according to Reuters, and often uses it as a unit of value to price services or fines that are ultimately paid in bolivars.
Citizens use an app called “Valiu” to trade bitcoin, because of the currency’s steadiness.
“Valiu buys and sells bitcoin instead of directly exchanging pesos to bolivars because of the lack of availability of that currency in regulated marketplaces,” said Alejandro Machado, Valiu’s head of pilot programs, told Reuters.
Those transactions are the largest by value among Latin American currencies, according to LocalBitcoins data, analyzed by blockchain advisor UsefulTulips.
Bitcoin uses complex mathematical formulas to create unique numbers which are given value, like printed bills or coins. At this moment, each Bitcoin is trading at $41,000, up 2.9% since Tuesday.
As explained by credit.io, balances are held something known as the blockchain, a public digital ledger. The ledger is public, thus no one can secretly try changing their own balance. And bitcoin isn’t printed, it’s “mined.” Bitcoin miners use computers to solve complex computational puzzles to find a new original block, which gets added to the blockchain. The process helps verify transaction records, and Bitcoin “miners” are rewarded with some Bitcoins for their efforts.
This is a very simple explanation to a complicated formula and process, but suffice to say, the currency has taken hold and it is touted by some as the world’s safest currency.
Since Bitcoin first hit the scene, a whole host of new cryptocurrencies have emerged. Most use similar principles, but each has its own specific features that set it aside from the others.
That said, can you buy a house with it? Around two years ago, Terrance Leonard, of Washington D.C. converted all his liquid assets to Bitcoin.
“When I realized the potential of crypto — and I realized how well it was doing for me in the beginning — I sold all of my stocks, my 401(k), everything and moved it all into crypto,” Leonard told MarketWatch.
Leonard says he bought his “perfect home” with his new investment strategy.
“Without investing in crypto there would have been no way that I would have been able to buy this at the time when it came on the market,” he said.
According to Leoard, he took a long-term approach and traded coins “well-positioned for longevity.”
Leonard told MarketWatch he sees the crypto market as comparable to the dot-com boom in the 1990s.
Said Leonard, “I’m looking for the Googles, the HPs, and the Oracles.”
According to one local realtor, who asked not to be named, buyers with a solid crypto wallet can go to the front of the line in a bidding war for properties—same as cash.
And yes, there are actual properties listed for sale as “bitcoin friendly.”
While no local realtors had any exclusive “bitcoin only” properties that we were able to locate, a two-bedroom condo in nearby Glendale is currently listed at $898,000, or 18.80 bitcoin.
Located in the Excelsior Tower of The Americana at Brand, this two-bedroom condo sits in the designer shopping mall above shops and restaurants. The 1,335 square feet property includes a designer kitchen with high-end appliances, Caesarstone countertops, and a custom tile backsplash. Building perks include two parking spots, concierge service, and a takeout and grocery-delivery service.
Suffice to say that much sooner than later, properties up and down the economic scale will be listed not only in dollars, but in Bitcoin.
