Crypto Millionaires in China are Using Bitcoin To Buy Property in Different Countries
The early adopters of Bitcoin (BTC), and numerous other cryptocurrencies, have seen their holdings increase in value over the years to astronomical levels. Some early HODLers are choosing to further diversify their crypto holdings into the global real estate industry.
Guo Hongcai, a beef salesman turned early bitcoin adopter from China’s Shanxi province, is one of many freshly minted millionaires funneling parts of their wealth out of the country by purchasing real estate abroad.
In April, Hongcai sold 500 BTC in the U.S and used the finds to purchase a 100,000 square foot mansion in Los Gatos: a residential area that is a 90 minute drive from San Francisco, California. He also owns a Rolls-Royce that is parked at the property as part of his purchases from the BTC sale.
Hongcai made a statement with respect to his new found wealth:
“It’s very normal to sell bitcoin in the U.S. After selling bitcoin, you can just buy anything you want.”
Mr. Hongcai calls his new residence his ‘Mansion of Chives’ for the word ‘Chives’ (which is also a vegetable) is Chinese slang for crypto investors who are vulnerable to big sell-offs.
Hongcai joins other Chinese crypto millionaires who are diversifying their holdings after the Chinese government started clamping down on crypto activities in the country earlier this year. Some have been known to purchase properties directly using crypto. Others use BTC to gain foreign currencies which they use to buy properties with.
The founders of one U.S. crypto real estate startup, who spoke on condition of anonymity, told roughly one-third of their prospective users hail from Asia, figures which include Chinese investors seeking tokenized property rights through Hong Kong securities brokers.
Natalia Karayaneva, CEO of Propy, a real estate firm that deals with crypto purchases, had this to say about the new crypto powered real estate industry:
“We’re seeing that more and more people are willing to buy properties with cryptocurrencies because it’s getting easier to get their money out of the country using bitcoin, rather than establishing a bank account based in Hong Kong and getting their money out of the country using business channels.”
According to Karayaneva, the U.S. and the U.K. are the most sought-after locations for real estate, especially fintech hubs like London or California’s Bay Area.
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