Over half a dozen residents of this San Francisco 'castle' have become bitcoin millionaires — take a look inside

Melia Robinson

Updated

2017-12-07T22:12:00Z

The Crypto Castle is a three-story home in San Francisco where young tech workers eat, sleep, party, and plot the future of money.

A majority of the millennial tenants invest in bitcoin, a new kind of payment system that allows people to buy things and send money with anonymity. There are no banks or middlemen. Transactions are recorded on a digital ledger called a blockchain.

Cryptocurrencies (of which bitcoin is the most popular) have been on a tear. Bitcoin surged in value from about $200 per coin in 2015 to a record high of $16,623 per coin on December 7.

Some believe the digital payment system is headed for a bubble that's destined to pop.

"Over a half-dozen people in the time they've lived in my house have become millionaires as a result of crypto," said Jeremy Gardner, a 25-year-old entrepreneur and investor.

In 2015, Gardner, then-director of operations at Augur, a market forecasting tool that runs on the blockchain, put down a $20,000 deposit to rent the house. It's since become a landing pad for people working in the cryptocurrency space. Here's what it's like to live in the Crypto Castle.

The Crypto Castle is, by appearances, a fraternity-like space for young bitcoin investors.

Not everyone who lives here works in bitcoin tech, though any resident could pitch you on its merits. Some entrepreneurs moved in simply because they needed a place to crash.

In 2015, Gardner surveyed the city to find a house-slash-office for his startup, Augur. When he found a three-story home in an upscale neighborhood — located about a half-hour drive from Silicon Valley — he forked over the $20,000 rental deposit. The Crypto Castle was born.

crypto castle san francisco 1750 — Jeremy Gardner. Melia Robinson/Business Insider

The house has since become a "landing pad for anyone doing cool stuff for the industry," Gardner said. Most residents and guests, who sleep in bunks, are in their early 20s.

"I don't think you can be in this house for two hours without being evangelized," Gardner said. His net worth has exploded since buying bitcoin at $200 a token in 2013.

Vivian Ford, vice president of operations at Comma, a self-driving-car technology startup, started investing in bitcoin within a week of moving in, calling it "the best investment I've ever made."

crypto castle san francisco 1670 — Viviane Ford. Melia Robinson/Business Insider

Now, her friends are coming out of the woodwork to ask for her financial guidance.

"They'll text me like, 'I think we should meet up — you seem to know a lot about this crypto stuff,' and it's like, ugh, do your reading," Ford told me on a recent visit to the house.

As you move through the house, it becomes clear that this is no ordinary residence.

Anyone who wishes to become a full-time resident must read the current issue of "Distributed," a cryptocurrency trade magazine. A stack sits at the front door.

The kitchen comes stocked with two beverages: Soylent (a chalky-tasting meal-replacement beverage backed by venture capital) and booze. Lots of booze.

A few tenants said living among so many motivated tech workers can be exhausting. Ford recalled coming back from a run one Saturday and being bombarded by her coworkers.

Until 2016, her employer, Comma, ran operations out of the basement. Founder George Hotz, a Silicon Valley wunderkind, built his first self-driving car in the garage.

Hotz also lived in this closet. "The work-life balance just didn't exist," Ford said.

Aaron Power-Bearden, an equities trader and a bitcoin enthusiast, said he enjoys the late-night talks with his housemates in the living room. "Mostly it's about finance," he said.

One house guest told me that the last time he was at the house, a random inhabitant grilled him a hot dog. "Two weeks later, I found out it was the cofounder of Oculus," he said.

In the Crypto Castle, no one needs to travel far to find smart, like-minded people.

The Crypto Castle offers prices that can't be beat in the nation's most expensive rental market. Tenants split the monthly rent. Gardner guesses the home is worth $3 million.

Over the last few years, Gardner has turned the majority of his savings and stock in public companies into cryptocurrency investments. His gains subsidize his cost of living.

"By dedicating my life to crypto assets and blockchain technology, I've made more money than I would have ever expected to make in my entire life — by a long shot," Gardner said.

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