The world of bitcoin and cryptocurrency is home to many intriguing concepts. A new initiative going by the name of Liberstad allows bitcoin holders to purchase land in Norway. This is quite an intriguing concept, albeit there are a lot of questions regarding the legitimacy of such a project. Let’s take a closer look at what the Liberstad project has to offer and whether or not there is a reason for concern.
Buying Land in Norway with Bitcoin
On the outside, the Liberstad project looks quite intriguing. There is a strip of land in South Norway, which users can purchase with bitcoin. Liberstad is Norway’s first private city, which explains why pieces of land can be put up for sale without too many problems. Users who purchase plots of land will receive a purchase agreement and need to pay a 20% deposit as a security. This transaction will also mark the “reservation” of said plot in the client’s name.
It has to be said, the plots of land are quite cheap, considering users effectively buy a plot of land that becomes their property. For the price of 35,000 Norske Kroner – less than US$4,500 at the current exchange rate – users will be able to purchase 1,000 square meters of land. All payment amounts will be calculated based on the exchange rate of the Norwegian kroner at the time of deposit. The team hopes to sell 15 hectares of land before May 19th.
One of the obvious questions people have is whether or not they can get a refund if things go awry. According to the Liberstad page, users will receive a full security deposit refund by May 26th. Having this failsafe in place will put a lot of investor’s mind at ease. Moreover, as the company uses BitPay to process transactions, there is a digital trail of these transactions taking place in an official capacity. Once the full payment has been completed, the user will receive a private deed and proof of ownership. All things considered, this makes for quite an intriguing investment opportunity.
It is certainly possible for international investors to move to Liberstad once they secured their plot of land. Due to the cabin-town nature of Liberstad, all plots are regulated for vacation use. It is good to know users do not need to move to Norway permanently for this venture, as that would turn off quite a few people. It will take some time until all buildings are erected, though. Moreover, roads still need to be created. The entire process is expected to take around two to three years. Investors can start the construction of a house themselves or have others do it for them.
Although this concept sounds rather promising, there are some drawbacks people need to take into account. For instance, even though users will receive a proof of ownership, that does not mean they will be able to see the land as they see fit. As far as we can tell, there is no official agreement for deforestation or even a building permit to erect any type of structures on this land. Even though the team claims there is no specific license required to do so, governments tend to oppose things regardless of the previous requirements.
Before people invest into the Liberstad project, they need to conduct their homework properly. Although this appears to be a legitimate project, it is impossible to tell if things will play out in a positive manner. Moreover, this location is not exempt from Norwegian law, it is not entirely “private” in the traditional sense. Concepts like these sound promising, yet there is plenty of reason to be cautious as well.
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