NFT house sells for $654k in historic auction -- Tampa condo up next

[Sancho]

https://www.tampabay.com/news/real-estate/2022/02/11/nft-house-sells-for-654k-in-historic-auction-tampa-condo-up-next/

A house in Gulfport auctioned off as a non-fungible token on Thursday sold for $654,310, or about 210 ethereum. It’s a first for U.S. real estate, according to real estate transaction firm Propy.

NFTs are typically used for digital collectibles like art and music, where ownership can be transferred and verified through the blockchain — a decentralized and secured log on the internet. In this case, the property rights were transferred to the limited liability corporation Never Forget to HODL LLC. (The phrase HODL means to “hold on for dear life” and is commonly used by cryptocurrency traders.)

The company was minted into an NFT, where the rights to the company and the property are stored on the blockchain. It had to be paid in ethereum, a cryptocurrency used mostly for smart contracts and NFTs, even though the bidding was based on the U.S. dollar. Technically, “A.J.” didn’t buy the house, but rather Never Forget to HODL LLC did.

Leslie Alessandra, the local real estate investor who listed the home, told the Tampa Bay Times she wanted to showcase the real-use applications of the blockchain. Alessandra is also the founder of blockchain company DeFi Unlimited.

Looks like everyone may need to get used to the idea of imaginary money...

[Ferrets are Cool]

1. This boggles my brain

I do not understand NFT's at all. I doubt I will in my lifetime.

[uncle ray]

2. you understand them perfectly well, actually.

[OneGrassRoot]

3. Me too. 😟 n/t

[brooklynite]

4. It really doesn't matter if the deed is registered on the blockchain...

Its real estate, and the city of Gulfport will have the final say on how and where the registration exists.

[OneGrassRoot]

8. Are you saying...

that it's possible that, unless local entities recognize these transactions, blockchain or no blockchain it may not be a valid transaction?

I've really tried to understand NFTs but just can't. Cryptocurrencies are already a stretch for me to feel comfortable with, knowing how it's used by nefarious actors. NFTs seem to be an extension of this, being a potential money laundering nirvana.

I try not to be a luddite and tend to be a fairly early adopter of new tech and platforms, but this stuff feels really icky to me...lol.

[brooklynite]

9. Real property is registered in the geographic jurisdiction where it exists...

...if for no other reason than to know who to bill for property tax.

You can sell the property to whomever you want, and you can put the receipt on a piece of paper, a cocktail napkin, or the blockchain.

Ultimately however, you'll need to register the sale with the relevant Government jurisdiction (and possibly pay transfer taxes) through whichever mechanism THEY require.

[OneGrassRoot]

10. I see. Thanks. n/t

[flying_wahini]

5. Does the owner still have to declare value in Dollars? For tax purposes?

Do they think they are dodging taxes or dumping NFT’s before the next big dip?

[PTWB]

6. Money has already been imaginary for the entirety of our lifetimes.

[Sancho]

7. I learned a new word...

I looked up fungible. It wasn't mentioned in my 1972 economics course.

https://www.merriam-webster.com/dictionary/fungible

Definition of fungible (Entry 1 of 2)
1 : being something (such as money or a commodity) of such a nature that one part or quantity may be replaced by another equal part or quantity in paying a debt or settling an account
Oil, wheat, and lumber are fungible commodities.
fungible goods
2 : capable of mutual substitution : INTERCHANGEABLE
… the court's postulate that male and female jurors must be regarded as fungible
— George Will
3 : readily changeable to adapt to new situations : FLEXIBLE
Managers typically use more than a hundred different lineups over the course of the season. Batting orders are so fungible that few players last long in one spot.
— Tom Verducci