I’m going to say it again: I want a mortgage that will accept Bitcoin collateral in lieu of a fiat down payment.
I do not want a mortgage that requires locking up the full fiat value of the house in Bitcoin collateral.
Discussion
Agree. Big difference there
Interesting idea. What happens when price goes down in fiat terms? Add collateral?
It would require a lender with a long term view to Bitcoin who is not afraid of dips. It could be somewhat over collateralized (like 35% instead of 20%). The collateral would be the combined value of the equity in the home and the Bitcoin so overtime as the value of the home and Bitcoin increases in fiat terms the loan should become increasingly favorable for the lender. If carried to term the Bitcoin is released to the borrower when paid off. If paid off early, the lender could charge a small fee taken from the Bitcoin. That gives the lender Bitcoin upside in the event the borrower retires the loan early. 🤷♂️
Good stuff