Update: TMZ reports that Psy just purchased a condo in Los Angeles. The website says that the rapper used his “Gangnam Style” earnings to pay for a 2,700 sq. ft. condo in the Blair House.

South Korean rapper Park Jae-sang, better known by his stage name Psy, has just accomplished a YouTube first: His “Gangnam Style” video is the first YouTube video to hit 1 billion views. Prior to reaching the one-billion-views mark on YouTube, “Gangnam Style” surpassed pop star Justin Bieber’s “Baby” to become the most popular YouTube video of all time.

According to Billboard, the four minute and 13 second video had more views than “Baby” by the end of November. Bieber’s “Baby” has earned more than 800,000 views since being released in February 2010. Since being posted on YouTube, Psy’s “Gangnam Style” has garnered more than six million likes and approximately 440,000 dislikes.

Even YouTube itself has taken note of the success of Psy’s “Gangnam Style” (plus, the video has earned them a pretty penny in advertising revenue). Writing on Google’s Official YouTube blog, YouTube trends manager Kevin Allocca congratulated the 34-year-old hip hop artist.

“PSY’s success is a great testament to the universal appeal of catchy music– and er, great equine dance moves,” Mr. Allocca writes. “In the past, music distribution was mostly regional. It was more difficult to learn about great artists from around the world. But with a global platform at their fingertips, people are now discovering and sharing amazing music from all over the planet, by artists like Brazilian Michel Teló and Belgian-Australian Gotye.”

Click here to see a chart of the meteoric rise in popularity of Psy’s “Gangnam Style” video versus Bieber’s “Baby” video.

“Congratulations to PSY, the flash mobbers, K-Pop fans and people who love fun across the globe,” Mr. Allocca adds. “Considering the Gangnam Style dance was the number one dance-related search on YouTube this year, you better make sure you brush up on your moves before New Year’s Eve.”

The popularity of Psy’s “Gangnam Style” has made 2012 a very good year for the South Korean rapper. According to New York Magazine, Psy will receive payouts totaling in the millions. The magazine broke down the payouts by party when his video had just over 850,000 views. At that point, Team Psy had received $1.7 million in revenue from YouTube, more than $243,000 in U.S. digital music sales, and the share price of YG Entertainment, the company that manages Park Jae-sang, had jumped 26 percent. These figures don’t include the payout that Psy has received from the other videos that Team Psy has posted to the rapper’s YouTube channel.

Psy’s new-found global fame in 2012 had only one blemish. President Barack Obama was asked to drop the South Korean rapper from the “Christmas in Washington” concert after it was reported that Psy once sang of killing Americans.

“Kill those f—ing Yankees who have been torturing Iraqi captives,” Psy rapped on a South Korean band’s 2004 song, “Dear Americans.”

Psy apologized, however, and was allowed to sing at the concert along with several other performers, including Diana Ross, Megan Hilty, Demi Lovato, Chris Mann and Scotty McCreery.

With the success of his “Gangnam Style” video, 2012 may be a hard year for Psy to match. Will Psy be a one hit wonder in the United States or will his music continue to find an audience around the globe?

Sound off in the comments section.