RentHop BitCoin Appreciation Exceeds Boston and Chicago Profits

In December 2013, RentHop.com began accepting BitCoin as a form of payment for landlords and real estate brokers to advertise apartment listings. The company initially offered a 60% discount off the prevailing USD to BTC exchange rate to encourage adoption of the new technology, and RentHop co-founder Lawrence Zhou pledged to hold the majority of any BitCoin received for the long term. We’ve been tracking and comparing the BitCoin appreciation over the years, and have findings to share.ย 

ย 

ย 

By using CoinBase as a payment processor from 2013 until early 2017, RentHop accumulated a modest stash of BitCoin from tech-savvy real estate agents. The price remained relatively stable, averaging $500 through most of the 3 years. When crypto prices appreciated drastically in 2017, the company holdings increased by over 3500% at the peak in December 2017. Even today, the largely untouched account has paid off tenfold, even after accounting for the initial 60% discount to customers.

ย 

ย 

BitCoin Appreciation Over the Years

Zhou remains optimistic on BitCoin’s future significance and intends to ride through the recent market volatility. On balance, the company’s decision was a huge victory, attracting a tech savvy user base, streamlining transactions using crypto currency protocols, and accumulating a large but unrealized profit from the appreciation.

As a comparison, RentHop Boston launched in April 2012 serving both No Fee and Exclusive apartment rentals in Cambridge and Greater Boston. RentHop Chicago launched four months later. As of 2019, the unrealized crypto earnings exceed both Boston and Chicago cumulative gross profits!

Unfortunately, as we never re-pegged the BTC prices, no agent has purchased using BitCoin since 2017. The original 60% discount has transformed into a 261% surcharge. Our engineering team may revisit the feature if there is demand.

Editor’s Note: We updated this article to enhance readability.ย 

Lee Lin
Lee Lin
Lee is a data geek from MIT who spent years at quantitative hedge funds cranking out models to explain and predict financial markets. Real estate has always been a big part of Lee's life. He grew up helping out at his parents' Jersey Shore motels, became a landlord his first year out of college, analyzed mortgages on a fixed-income trading desk, and acquired a New York real estate license. At RentHop, he combines his nerd talents and real estate knowledge to constantly tweak the secret HopScore. He currently lives near Bryant Park and his favorite restaurant was Cafe Zaiya (now known as Tomiz).

You May Also Like

Summer Decorations For Your Apartment

Summer is here to stay, which usually means a beach vacation, frozen margaritas, and chilling in a pleasantly decorated space. But, not everyone has...

10 Things to Check Before Renting an Apartment

Finding a new apartment is equally exciting as it is nerve-wracking. In places like New York City, renters only have a few weeks to...

The Hidden Waterfalls of New York City

New York City isnโ€™t just a huge, concrete jungle. Behind the bustling traffic and tall skyscrapers, are both natural and man-made hidden escapes. What...

Recent Articles