Only Bitcoin Accepted For Historic Malta Palazzo Up For Sale

Malta has been in the forefront for several cryptocurrency- and blockchain-related activities — from holding a famous blockchain summit to the biggest cryptocurrency exchange, Binance, setting up its office in the island nation — and is close to becoming a "blockchain island." As if to further attest to that title, the owner of a $3 million-building in the country's capital, Valletta, said he was selling the property but would accept payment only in bitcoin.

The historic building is 421 years old in the traditional palazzo style of architecture. With a ground area of just over 9,250 square feet, it could serve a range of different commercial purposes, such as an office space or a hotel, according to the owner, Ian Fitzpatrick. The building already has commercial permits for various activities, should the future owner plan to use it commercially.

"It has been reinforced to ensure stability while maintaining its authenticity and traditional appeal," Bitcoinist reported Wednesday, citing Fitzpatrick, who is asking for 560 bitcoins for the property.

The palazzo has 18 bedrooms, a courtyard, unique historical features, as well as underground structures. It is situated on Republic Street close to Valletta’s main square, alongside banks and ministries. The building, according to the real estate firm handling the sale of the property, is ideally suited to house offices, an embassy, a boutique hotel, or even a housing project.

Fitzpatrick is selling the property only in exchange for bitcoin and wouldn't accept any other form of payment. However, this could be a problem for the buyer, considering the high volatility of cryptocurrencies. Property deals take time to settle, and if the value of bitcoin were to shoot up in that period, the cost for any potential buyer would rise significantly as well. For instance, the price of bitcoin fell below $4,400 Wednesday from over $7,000 in the first week of September. In the last week of November 2017, bitcoin was trading for over $8,000, climbed to almost $20,000 a month later, before starting a downward slide.

The property is listed for sale on cryptohomes — a real estate firm located in Malta that deals exclusively with transaction of property using cryptocurrencies — for 560 bitcoins. The firm lists one other property for sale, a luxury villa in Tenerife, Spain, for 595 bitcoins.

This is not the first time a property is being sold for bitcoin, several mansions and houses have been sold and auctioned for cryptocurrencies previously. Using virtual currencies to buy real estate is popular even given the high volatility in the price of cryptocurrencies.

In October, Bloomberg reported that Roy Niederhoffer, president of New York hedge fund R.G. Nierderhoffer Capital Management, said he was selling his Manhattan mansion and would accept bitcoin payments. The 10,720-square-foot house was listed for approximately $15.9 million in cash, which at current market prices, is just over 3,500 bitcoins. Built in the late 19th century, the mansion on 40 Riverside Drive has a view of the Hudson River and a park.

In September, the owners of St. Regis Aspen Resort in Colorado launched real estate security tokens on ethereum blockchain with help from crowdfunding platform Indiegogo. Investors could buy shares in the resort with tokens sold on the blockchain.

One of the largest properties sold for cryptocurrncies was auctioned by Rick Hilton’s Hilton & Hyland company in June. The 17,000-square-foot Roman mansion called the Palazzetto is in Rome and was built in the 16th century by legendary sculptor Giacomo Della Porta — a famous collaborator of Michelangelo. It was sold for about $42 million.