$500k Villa Sold in What May be Biggest Bitcoin Purchase on Record

(@pete_rizzo_) | Published on March 19, 2014 at 22:24 GMT

Online bitcoin-only luxury marketplace BitPremier has completed the sale of a fully managed villa at the deLMango Villa Estate in Bali, Indonesia, in what may be the largest reported bitcoin transaction to date.

Founder and CEO Alan Silbert indicates that the 3,000-square-foot villa sold for more than $500,000, though the exact price paid by the buyer was not revealed.

Silbert, brother of SecondMarket CEO and BitPremier investor Barry Silbert, indicated that the sale is "by far the largest" completed to date via the marketplace, which was launched last May.

Further, he sees the purchase as proof that bitcoin buyers will be increasingly willing to diversify their assets with other investment opportunities.

Explained Silbert:

"This definitely validates the business model. It shows that bitcoin users want to buy things that are unique, and that are above and beyond t-shirts and electronics."

The sale was finalized in late February.

More details

Speaking to CoinDesk, Silbert did not reveal many more details about the buyer, mentioning only that the individual was an early bitcoin adopter based in the US.

Said Silbert: "He's been in the bitcoin community for at least a couple years."

As for the house sale, Silbert indicated that due to Indonesia's unique laws regarding the ownership of real estate by foreigners, the buyer is technically purchasing a long-term lease.

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The property boasts an intricate design that blends the indoors and outdoors with open-sided rooms, a dedicated dining pavilion and a private pool.

In addition, the villa features two modern bedrooms and two bathrooms.

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The buyer will earn income based on the performance of the rental unit and villa as a whole, Silbert said.

Bitcoin's biggest transactions

The $500,000 sale price would trump the $103,000 paid for a Tesla Model S in December, believed to be the largest single consumer purchase conducted in bitcoin.

However, it falls well short of the $147m mystery transaction, later revealed to be the product of a Bitstamp audit, that is the largest single transaction ever.

About BitPremier

An online marketplace that connects bitcoin buyers and sellers, BitPremier has hosted a range of exotic items on its forum, including most recently a pair of Wooly Mammoth tusks that were put up for sale for the asking price of $175,000.

BitPremier facilitates communication between both parties, who remain anonymous until the terms of the deal are settled. Funds are then held in escrow until the buyer confirms an item has been delivered. BitPremier then sends funds to the seller, with a 5% fee deducted from the proceeds.

The website is currently listing other notable items such as a 16-inch pearl necklace valued at $10,000; a Paris property with a view of the Eiffel Tower listed for €4.6m; and a 1969 Boss 429 Mustang being offered for $290,000.

Images courtesy of BitPremier

bitpremier

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