Paying for a house with bitcoin sounds to me a mistake or lack of financial knowledge. Bitcoin is better than Fiat. Bitcoin increases in value and fiat faces inflation. Why then would one spend Bitcoin instead of fiat on a house rent which may expire in few years? Accommodating the Bitcoin can birth the person more money to pay his next house rent. But fiat wouldn't add any interest in the bank. Moreover the house owner will not hold the Bitcoin.
If it were the case that once you lost bitcoins you could never get them back then it would be natural to think like this. But just because you can collect bitcoins whenever you want doesn't mean you can't make any transactions with bitcoins. Moreover, when we came to know about Bitcoin, we came to know about Peer to Peer transactions where direct transactions are mentioned. The demand for Bitcoin is increasing day by day and as it is a part of trading, it has a lot of volatility and those who can exploit this volatility will definitely be gainers. Losing Bitcoin is definitely a loss for those who are long-term investors. But for those who consider it as a payment method, it can be a reliable means of transaction.