First-time home buyers are increasingly using cryptocurrencies to help finance their purchases, according to a report from Redfin on Friday.
During the fourth quarter of 2021, 11.6% of first-time buyers surveyed by the real estate portal said that selling cryptocurrencies had helped them save for the down payment.
The survey is carried out twice a year at approximately the same time, however the timing may change in a month or two, which means it could be done in different quarters, which should not affect the results significantly, Redfin said.
That fourth quarter figure is up from 8.8% in the third quarter of 2020 and 4.6% in the third quarter of 2019.
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"With overtime and a lack of exciting ways to spend money, many people began trading cryptocurrencies during the pandemic," Redfin chief economist Daryl Fairweather said in the report. "Some of those investments fizzled out, but others went 'to the moon,' or at least went up enough to help finance a down payment on a house."
The most popular method of saving for a deposit among first-time buyers was directly through paychecks, which was the route taken by 52% of respondents.
Other responses included cash gifts from family, the method used by 12% of respondents, and 10% withdrew money early from a retirement fund.
Bitcoin is the world's largest and most famous digital currency and hit a record high of nearly $ 69,000 in November, Redfin said.
"Cryptocurrencies are a way for people without generational wealth to win a lottery ticket for the middle class," Ms Fairweather said.
