Volatility is one of the qualities that keeps Bitcoin from breaking into the economic mainstream, since most people aren't crazy about the idea of sinking their money into a cryptocurrency that rollercoasters up and down in value seemingly at random. But sometimes that volatility can have unintended benefits, as in a story recently shared by Sonny Singh – who, granted, has an interest in making Bitcoin seem as attractive as possible in his job as chief commercial officer of BitPay.
In a recent interview on Bloomberg Markets, Singh shared the story of a prospective home buyer who approached him to facilitate the deal using bitcoin as payment rather than traditional currency. Eventually, a final price of about $4 million worth of bitcoin was agreed on, at which time the exchange rate had it worth about $750 per bitcoin. But in the short time that passed before payment was to be made, the value of the buyer's bitcoin had gone up to $1000, a 25 percent increase that essentially translated as a $1 million windfall for the buyer thanks to appreciation on the value of the house. Here's Singh:
"The buyer actually ended up making about 25 percent in the currency exchange rate, essentially, in the appreciation. He got a house for pretty much 25 percent cheaper."
The identity of the lucky Bitcoin user was kept a secret by Singh, but he did add a delightful tidbit about what the individual decided to do with his extra $1 million:
"With that extra money, he went and bought a Lamborghini at Newport Beach, Orange County, which also accepts bitcoin with Bitpay."
It's possible that reading a story like this will make you want to invest in Bitcoin, perhaps even buying a house with the cryptocurrency – in fact, that's why Sonny Singh shared it in the first place. But keep this in mind: Volatility is a two-way street, and you could just as easily lose a fortune as gain one on the Bitcoin market.