Providence piece of land is sold for cryptocurrency
PROVIDENCE, R.I. (WJAR) — If you're looking for land to buy, there may be a new way to do it. One seller sealed the deal for a lot on Wayne Street in Providence, asking strictly for Dogecoin.
It's believed to be the first recorded real estate transaction in the country using the U.S. dollar alternative.
"He said, 'I think it would be really cool if we could only sell my lot using Dogecoin'," realtor Kyle Seyboth said.
Dogecoin is a type of digital money, or cryptocurrency, born from an internet meme that's taken off, comparable to the more popular Bitcoin. Seyboth, who owns The Seyboth Team, a local Century 21 office, took on the sale.
"It's a way to stay innovative and ahead of the times and show we're not stuck in the mud," Seyboth said.
Cryptocurrency has skyrocketed with the support from well-known business insiders like Elon Musk and Mark Cuban, but a recent announcement from Musk that his companies will no longer accept Bitcoin has left value of digital currencies like Dogecoin dropping just within the last few days.
Something like that, though, won't change the price of this sale, which is now under contract.
"It was 150,000 Dogecoin, which equates to $50,000," Seyboth said. "At the time that the purchaser goes into contract, that's the price you're paying at the time and the price you're paying at closing, so I think it's interesting that the seller could make out better or the buyer could make out better depending on the fluctuation of the value."
"I think from a seller's perspective, it's just kind of exciting and interesting, and it gets attention," Tim Howes told NBC 10 News.
Howes is an associate professor of finance at Johnson & Wales University's College of Business. He said cryptocurrency is a legitimate transaction, but like every business bubble in history, it could burst.
"The reason they're excited about it is because it keeps going up in value," Howes said. "At some point, the musical chairs will stop and there won't be enough chairs for everybody, and that's when the panic selling starts. We just don't know what that will be."
He thinks some forms of digital currency will stick around for the long run, and others may die off.
As for Seyboth, he said the sale of this land has his phone ringing from people who want to do the same thing. He thinks it's something he'll be seeing more of going forward.
"I think it just gives people another avenue to participate and investors that are savvy enough to understand crypto, I think it’s a good space," Seyboth said.