The island is a 13-acre plot of land on Union Island and a small airport links Union with other nearby islands.
The island called Bloody Bay Beach is being auctioned off at 600 Bitcoin (£5.3 million).
Bitcoin recently breached the $11,000 (£8,177) mark.
The island is only being offered for Bitcoin for a “limited period only”.
And the team behind the sell of the idyllic plot of land say someone with just £90,000 worth of Bitcoin in March 2015 would now have enough to bid for the land now.
The island has been described as: “unspoilt, unique and utterly stunning” with plenty of room to build on the island. As well as designs “for a collection of luxury cabins” courtesy of architect Seth Stein.
Union Island only has a population of 3,000 people and is located near Mustique, the private island of St Vincent and Grenadines.
It also neighbours Canouan Island, where the £100 million Pink Sands Club resort opened just last year. US President Donald Trump used to own a property on this island.
Bloody Bay Company, the group selling the plot said: “Someone wise or brave enough to have got in early on the cryptocurrency phenomenon could soon be lifting their rum cocktails to toast the bargain of the century.”
They added: “The new owner will be investing in one of the property hot-spots of the Caribbean.”
It is not the first time a big ticket item has been on sale for Bitcoin only as recently a £17 million mansion in London on sale could only be bought in Bitcoin.