BitCoin Mortgage Bonds

[Segovia78]

I take note that companies like Coin Shark are pioneering Bitcoin mortgages. Does anyone have any ideas or comments as to the demand for this in the marketplace and ultimately replacing traditional mortgages ?

[European Central Bank]

I can't find any links that mention that. Where is it? I assume that means you gotta trust a third party to handle the conversion. I think we all know how that usually works out. It's one thing to risk a few coins. Risking the roof over your head by trusting some internet asshole is a giant ask.

[Segovia78]

Hi,

Thanks for the reply.

Please visit the following link. It's vague, but if you do bit of digging, its obvious they are planning to do this by registering a lien (mortgage) over fixed property as security for the bitcoin mortgage loan. It would work according to the same principles of a residential mortgage backed security (RMBS).

https://coinshark.io/

"The 'Sharks' can invest in loans secured by real property rights and smart property/smart contract technology."


I think this could easily be done making use of existing crowd funding platforms. My goal is to meet like-minded people (bitcoin experts), who would be willing to explore this with me and possibly bring it to life.
Let me know if you would be interested to discuss this further.

[ranlo]

I think it's a great idea since they seems to be taking peoples houses as collateral if I read it properly little tired.

But seems like a good concept never seen anything like this.

I don't see it working out too well. Mortgages use flat-rate returns based on fiat. Assuming nothing changes in your life, you will have more earnings over time than now. On the other hand, BTC fluctuates. It could go up or down, effectively making it impossible to fully repay the loan (i.e., when I loan out 10 BTC, I expect 10 BTC back -- I don't care if it increased in value 50000% or decreased to 1/200 of its value -- what I loaned is my expectation for return).

[Fortify]

This is part of the reasons countries like Iceland had such big problems in the financial crisis, they borrowed loans in the strong Icelandic Krona but they had to be paid back in US dollars. Then the Krona collapsed and they still had the outstanding USD loans to pay back. The same thing could happen with bitcoin and there have been vast fluctuations in the past so it looks very risky - but you might get lucky.