Managing Director at One Bequia Storm Gonsalves said he believes the houses prices on his Bitcoin luxury development will reach “stratospheric levels” if it is successful as he thinks cryptocurrency enthusiasts will flock to it to turn their money “real”. Mr Gonsalves is creating a community in the Caribbean where homes, goods and services can all be paid for through cryptocurrencies. He claimed investment into the development could see strong returns, telling Express.co.uk his thoughts behind the project. 

The One Bequia development is set to be built on the Bequia island which is part of St Vincent and the Grenadines. 

The 18-square-kilometre island will see 39 villas complete with shops, a clubhouse and other services which will accept Bitcoin and other cryptocurrencies as payment.

Mr Gonsalves said that while some houses have been purchased using Bitcoin before, this will be the first time a community has been built which will widely accept it as a regular currency. 

The developer added he thinks the future of the housing market could follow in his footsteps if the development is successful with more homes eventually accepting Bitcoin as payment. 

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But when asked if the development could have a negative effect on the Bitcoin price, he said: “Bitcoin is so large right now, a trillion dollars in that market.

“The total value of goods and services being bought daily with Bitcoin is through the roof, probably billions of dollars, so I don’t think this one project with 40 villas have an effect on the price.

“However, I think that if this project is successful and it attracts people who believe in the ideology behind Bitcoin and Etherium and Blockchain, the properties themselves will definitely go up in value.

“And I think it will be stratospheric once people see that this is not a gimmick and that this is truly a community of forward-thinking people.

He also explained the logistics behind the development where prices would be “locked-in” for ten minutes to complete a transaction as the price of cryptocurrencies could fluctuate. 

The cheapest available property costs £620,000 for a two-bedroom villa which is kitted out with automatic technology and the latest gadgets. 

Smaller cabins are being considered as a cheaper alternative to the villas but are yet to be fully planned out yet. 

The price of Bitcoin has seen wild fluctuations in the past month after Tesla CEO Elon Musk tweeted his support for the currency and then sparked a mass sell-off when he dumped his coins. 

Nearly $300billion was wiped off the value of Bitcoin which saw prices plummet 50 percent to around $32,000 per coin. 

China also announced crackdowns on cryptocurrencies as they could be used for criminal activities which only further decreased the value. 

Other Asian countries like India may also follow suit and limit Bitcoin usage to tackle crime. 

Express.co.uk does not give financial advice. The journalists who worked on this article do not own Bitcoin.