We’re living in strange times. With the rise and fall of Reddit meme stocks and virtual currency and digital properties that can be transferred in an instant, it was only a matter of time before someone would ask a question that burns so hot that it had to be answered. That question, of course, is "Can you buy a house with Dogecoin?"
Dogecoin, a cryptocurrency created in 2013 as a tongue-in-cheek response to Bitcoin, has made plenty of its own headlines recently, going from virtual obscurity to a huge gainer in the crypto markets. Featuring the Shiba Inu made famous by the Doge meme, almost no one could have predicted the monumental rise of the coin. So crypto, much wow.
Properties accepting Dogecoin: a brief run-down
Since Dogecoin has been seeing monumental value gains, some people have decided it’s high time that they turn their real estate investments into leaps of faith into crypto -- specifically Dogecoin. A number of properties have made the news as being put up for sale with one caveat: to be purchased with Dogecoin only.
The first in the United States was a building lot on Wayne Street in Providence, Rhode Island. Realtor Kyle Seyboth represented the seller, listing the scrap of land at 150,000 Dogecoin, or approximately $50,000 at the time of the listing. Because the value of Dogecoin is constantly in flux, the seller was taking a huge gamble on Dogecoin increasing in value between the time of the listing and the sale.
Surprisingly to many, the property did go under contract in early May for full price. By the time closing came around, the initial $50,000 equivalent contract was worth $116,000. The seller doubled their money without doing anything to the property in the time it took to prepare the transaction’s paperwork and set up a coin transfer. Not a bad gig if you can get it.
355 Developments, a Portuguese developer, also listed three apartments on FNTX Capital Suisse’s real estate exchange with the option to pay in Dogecoin. Although they’re still up for grabs, the least expensive, a two-bedroom apartment in Lisbon, can be snapped up for a mere 3,352,019.881 Dogecoins ($726,382.71 as of the writing of this piece). There are other properties available on the FNTX exchange as well, in far-flung locations like Costa Rica, Dubai, and Gibraltar, as well as U.S. states, including New York, California, and Florida.
Digging for Dogecoins
Cryptocurrency can be collected in a variety of ways. Many people buy their coin of choice using a broker, like Coinbase, where they can simply exchange government-backed currencies for coins, based on the going rate at the moment. Others harvest their coins, known as "mining" for most coins, and “digging” for Dogecoins (because Doges dig, get it?)
Using computers with high-power processors, crypto miners and diggers process transactions and record them on the Dogecoin blockchain. In exchange for their efforts, these Goodest Boys and Girls are rewarded with Dogecoins. They can then choose to sell or hold those coins, which are added to the Doge ecosystem.
It sounds all fine and good, until you remember that simply printing money is pretty much the fastest way to create inflation, as has been witnessed time and time again across the globe and throughout history. Since there’s no lifetime cap on how many Dogecoins can be mined, the millions of new Dogecoins created daily are not the most stable of currency.
To answer the basic question: Yes, you can buy a house with Dogecoin. The more pressing question, then, is “Should you?”
The Millionacres bottom line
There are many things you can do: You can stick your hand in a pot of boiling water, or you can paint your cat blue, and you can absolutely buy things with Dogecoin. But between you, me, and the wall, you probably shouldn’t. Although all types of cryptocurrency are prone to bubbles, Dogecoin gaining huge amounts of value only for being Internet famous puts it on excessively wobbly ground, even for crypto.
Now, if you get lucky and make a Dogecoin purchase as the inevitable bubble breaks, you’re in luck. You probably got a heck of a deal, but I have a feeling that once the bubble does burst, this one will absolutely return to the shadows from which it came. So, unless you time it just right, your bubble will just leave you with a lot of useless coins that you can’t do anything with.
Selling and accepting Dogecoin is a situation that’s currently a big-time money maker, if you can find a buyer -- but remember to keep an eye on that bubble. It’s absolutely not a matter of if it bursts, but when. If you must transact using crypto, bigger, more popular coins are likely to be more stable, since the value in crypto is based on the belief it has a value. Dogecoin’s value is based on the same shifting sand as its cousins the meme stocks, which is to say, it's based on the whims of a bunch of Redditors.