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PETALING JAYA (Jan 22): On Jan 8, a landmark real estate deal was struck in Sabah’s Libaran Island, over a 1.22ha acre parcel.
What made it so significant? It isn’t an especially large piece of land, nor was its selling price extraordinary — the land was priced at RM38,000.
What was notable about the land deal was that the transaction will take place in bitcoin. The buyer — Polycarp Chin — has paid a down payment worth 0.05 bitcoin (worth roughly RM3,883.25 as at Jan 8, when the deal was signed).
The remainder — 0.45 bitcoin worth about RM34,116.25 as at Jan 8 — will be paid upon the successful completion of the land ownership transfer.
However, given the volatility of cryptocurrency, which has accelerated following a clampdown by several central banks on the trading accounts, is it such a good idea to make any land transactions in cryptocurrency?
According to CoinDesk, a bitcoin now (Jan 22) is worth RM45,072.54, compared to about RM77,665 per coin on Jan 8. That’s a difference of RM32,592.46 in a span of a fortnight.
Granted, the vendor Alexander Yee said the value of the land is stated in ringgit. This would ostensibly mean Chin would have to top up the difference in value between what 0.45 bitcoin is now worth and the stated value of the land.
If Chin had bought his bitcoin at peak prices, his losses would further be compounded.
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