FEBRUARY 13, 2022 | Issue 02
CNR LAUNCHED LAST WEEK. NOW WHAT ?
This was a HUGE week for real estate crypto and I'm excited to share what happened with the Tampa house that was auctioned as an NFT.
But first, thank you for reading last week's pilot issue. The response was terrific and it meant a lot to me when readers took a few minutes to send me an email.
This newsletter is for you, real estate agents who are crypto curious. If there's something in crypto world you want me to explain, let me know.
I added two sections to CNR – Crypto Words and Crypto Class.
Like any field, there are terms insular to practitioners. Unless you understand the language, you'll remain an outsider. Crypto Words will define a term for you to learn and use.
Crypto Class will introduce a core crypto subject with a link to learn more.
So, let's jump back down the crypto rabbit hole ...
CRYPTO REAL ESTATE NEWS
Tampa House Sold as an NFT - A First In the U.S.
After a two-day delay, 6315 11th Ave S, Gulfport, FL became the first house in the US that sold as an NFT (non-fungible token).
The house was listed for $650,000 and after a six-hour auction, there were two bids. The purchase price was $653,000, or 210 ETH in cryptocurrency.
The NFT was orchestrated by Propy, a crypto real estate startup. Propy masterfully created a lot of media attention which likely contributed to the bids.
The house was listed on the MLS and had received offers, but those interested buyers were told that the online NFT auction bids would be considered first.
The winning bidder received an NFT that included ownership of a corporation. The house is an asset of that corporation.
NFTs are non-fungible tokens which are commonly associated with graphic images such as CrypoKitties, CryptoPunks, and Bored Ape Yacht Club.
The top selling NFT over the past 24 hours, as profiled on Blockchain is SuperRare #6623 which sold for $652,569.
It seems crazy to a non-collector that someone would pay $652,569 for a unique graphic image. However, it seems reasonable that a bidder could buy a house for the same amount of money.
All real estate agents should pay attention to this new way of selling a house. It will gain traction in crypto-friendly markets.
Upcoming Google Meet with Tampa NFT House Listing Agent Amy Heckler
Amy Heckler, the listing agent for the NFT house will host a Facebook Live on Thursday, February 17, 2022, at 1:30 pm. Go to https://fb.me/e/3kGRhT4uH. She'll discuss the process of listing the house on the MLS while the seller was working with Propy to auction the house as an NFT.
This is going to be a very interesting call.
CRYPTO NEWS
In 2016, Bitfinex, one of the largest cryptocurrency exchanges, was hacked. The thieves stole 119,754 bitcoin, which was valued at $74.8 million.
On Tuesday, the Justice Department seized over $3.6 billion in bitcoin and arrested a married couple accused of money laundering. This is the largest financial seizure in DOJ's history.
The couple, Dutch Lichtenstein and his wife, Heather Morgan (left), created a lot of buzz in the crypto world. Morgan, an aspiring rapper known as "Razzlekhan," had a following on social media. (Warning: her rap video will make you cringe! Opening verse - "This song is for all the entrepreneurs and hackers.") And... Netflix is going to make a docu-series about the couple.
• This week, Consulting firm PwC released its global crypto hedge fund report. Key takeaways: 1) total assets under management increased from $2 billion in 2020 to $3.8 billion in 2021; 2) returns were 30% in 2019 and skyrocketed to 128% in 2021; 3) majority of investors in crypto hedge funds are high-net worth individuals (54%) or family offices (30%).
CRYPTO CLASS - Bitcoin
Bitcoin has two meanings. Bitcoin, with a capital B, is a software protocol, or a set of rules. The monetary unit is bitcoin with a lowercase b, or BTC.
Bitcoin is based on a field of computer science known as applied cryptography. The encryption algorithm used by Bitcoin is so secure that the US government requires its use for highly sensitive information.
BTC is viewed similar to gold because people consider it rare, valuable, and not created from a balance sheet of a financial institution.
BTC is scarce because the supply is capped at 21 million BTC. Anyone can own it and as it becomes easier to buy and understand, the demand will rise and FOMO will kick in. Since the supply is limited, the price will increase.
To understand how Bitcoin is transacted, it's helpful to compare it to email.
With an email address, anyone can send you a message and attach data. However, only you can open the email and access the data because you have a password.
When you own bitcoin, you also get an address. This is your public key. Others can send BTC to your public key. You also have a private key, which is your password. This gives you exclusive access to your BTC account.
Go to CoinDesk's Crypto Explainer+ to learn more.
CRYPTO WORDS - BTFD
Buy The F'ing Dip. When BTC plummets in price, bitcoin enthusiasts view this as a buying
opportunity.
RESOURCES – Books, podcasts, videos, articles UNCHAINED Podcast is hosted by former Forbes senior editor Laura Shin. Shin has top guests from a broad spectrum of crypto areas. She also has a terrific daily email service.
INFLUENCERS - People to follow
Satoshi Nakamoto
On October 31, 2008, Satoshi published a white paper announcing the creation of bitcoin. “A purely peer-to-peer version of electronic cash would allow online payment to be sent directly from one party to another without going through a financial institution.”
Satoshi’s identity is unknown and some suspect it may not have been one person, but several people. The white paper was sent to a small online group called the Cryptography Mailing List. It proposed a new monetary instrument. His proposal was well received.
According to New York Digital Investment Group, in 2021, 46 million Americans, or 22% of the US adult population, own Bitcoin. All cryptocurrencies have a market cap of $1.97 trillion.
What do you think of Crypto News for Realtors? Is it helpful and an interesting quick read? I'd love to hear your feedback. Also, if you know someone who would like to subscribe to this newsletter, contact me at richard.hopen@compass.com and share their email and full name.
Thanks! Rich Hopen