Thanks Niko! Glad to see other Bitcoin/RE enthusiasts on Nostr. 👌👊
Holy shit. What nostr:npub1v5k43t905yz6lpr4crlgq2d99e7ahsehk27eex9mz7s3rhzvmesqum8rd9 says starting at 29:00 regarding lending businesses fiat but requiring a portion of it to be in Bitcoin as default protection is brilliant. Give it a listen!
Discussion
Question nostr:npub1v5k43t905yz6lpr4crlgq2d99e7ahsehk27eex9mz7s3rhzvmesqum8rd9 - When you hypothetically lend say $100k to a business / developer and require 10% be allocated to Bitcoin for default protection, who gets the Bitcoin (at the appreciated value) at the end of the term loan assuming there’s no default? The lender, or the borrower? I could see a situation where the Bitcoin is almost 30-50% of the value of the loan in a few years. Appreciate your insights here.
Hi Niko, if you are the borrower, ideally you want to keep possession of the BTC! However, there are lenders who understand the value proposition of BTC and require shared custody and a share of the increase in fiat value after loan end.
Thanks for the response, Liam! That makes sense! I’m exploring being a lender using this strategy for both property and business loans. I like the idea of a shared custody model as well requiring a share of the increased value in fiat for the BTC. Still exploring…