How can Bitcoin be used as loans for real estate?

[cellard]

Some people argue that something cannot ever be considered as money if you cannot get credit through it, so for example you want to buy real estate and you need a loan, this needs government approval. How can Bitcoin ever reach that point of acceptance by a government if ultimately Bitcoin is disruptive against all states and governments? Or can Bitcoin be money even if it can only be used as a gold substitute?

[stompix]

Some people argue that something cannot ever be considered as money if you cannot get credit through it

Some people say the earth is flat.....

so for example you want to buy real estate and you need a loan, this needs government approval.

No, you don't.

How can Bitcoin ever reach that point of acceptance by a government if ultimately Bitcoin is disruptive against all states and governments?

Where did you get that idea from?
Look at what Japan did.

Or can Bitcoin be money even if it can only be used as a gold substitute?

Actually this is one tricky question now that I think about it....
From my point of view as long as it used to pay for goods and services and accepted by somebody it qualifies as money and I don't really see BTC right now being used as a gold substitute only and more "also like a gold substitute"

[darkangel11]

What about getting credit through private companies, without government acceptance. You could technically do the same thing that's being done on this forum. Get an escrow, provide collateral and get a credit from a private owner.
You can't expect the credit in cryptocurrency to work just like it does in fiat because there's no infrastructure behind it. Not enough specialized lawyers, bailiffs, notaries for it to work on a large scale.
There are companies that offer BTC loans, like this one: https://nebeus.com/

[The_Dark_Knight]

Some people argue that something cannot ever be considered as money if you cannot get credit through it, so for example you want to buy real estate and you need a loan, this needs government approval. How can Bitcoin ever reach that point of acceptance by a government if ultimately Bitcoin is disruptive against all states and governments? Or can Bitcoin be money even if it can only be used as a gold substitute?

The characteristics of money are well known to almost everyone in the forum and I have yet to see one instance in which being able to give credit was part of any definition that I have ever seen, second loans do not need the approval of governments, do you need to get permission of the government to lend 10 dollars to your friend? Banks face regulations regarding the interest rates they can charge and several other factors, but they do not need permission from the government.

[rerek007]

Some people argue that something cannot ever be considered as money if you cannot get credit through it, so for example you want to buy real estate and you need a loan, this needs government approval. How can Bitcoin ever reach that point of acceptance by a government if ultimately Bitcoin is disruptive against all states and governments? Or can Bitcoin be money even if it can only be used as a gold substitute?

You can loan your bitcoin in real state because bitcoin is like your investing wallet its like a ATM card or bank accounts

[armansolis593]

How can Bitcoin ever reach that point of acceptance by a government if ultimately Bitcoin is disruptive against all states and governments?

If bitcoin wouldnt be so volatile government might reconsider their actions towards bitcoin. Anonymity is also one thing to look at since most bitcoin users are anonymous except for the ones who do trading at the market.

Or can Bitcoin be money even if it can only be used as a gold substitute?

We are using it as a "money right now, but government and most financial institute look the other way. Without the acknowledgement of the government bitcoin will still be a bubble, scam etc. and wont come near gold.

[Gozie51]

Some people argue that something cannot ever be considered as money if you cannot get credit through it, so for example you want to buy real estate and you need a loan, this needs government approval. How can Bitcoin ever reach that point of acceptance by a government if ultimately Bitcoin is disruptive against all states and governments? Or can Bitcoin be money even if it can only be used as a gold substitute?

This senerio you raised is appertaining to legality of bitcoin. Where the government has to approve a loan whose primarily source of repayment or refund is bitcoin whose legality is still hanging and debated, it means the deal is failled already.

Obviously, this is a real and positive senerio you have come up with and my response is, based on if the jurisdiction has legalised bitcoin or not. Hence, if it has not, the loan might not pull through .

[cellard]

No, you don't.

You can only buy real estate with bitcoin IF the government in which where you are trying to buy real estate allows it, so at least when it comes to real estate, bitcoin is still subjected to government approval, therefore the state/government has an huge amount of control on what bitcoin can do. Not being able to buy real estate with it is a constant sell pressure for bitcoin since anyone wanting to do real estate business is forced to take a pretty big dump for fiat first. This is a problem.

If one could buy real estate directly with bitcoin, you would give the real estate to the owner and this bitcoin would (in principle) be converted back to fiat. Now the owner can do whatever he wants but at least it isn't a requirement.

I know some people has bought real estate with BTC but these cases are still:

1) Marginal
2) Still has government approval otherwise it wouldn't be happening

[bob3772]

Some people argue that something cannot ever be considered as money if you cannot get credit through it, so for example you want to buy real estate and you need a loan, this needs government approval. How can Bitcoin ever reach that point of acceptance by a government if ultimately Bitcoin is disruptive against all states and governments? Or can Bitcoin be money even if it can only be used as a gold substitute?

I don't think that what you're saying is in fact truth at all. Being considered as money has nothing to do with gaining credit, there is absolutely no link whatsoever. By that logic when a friend lends you some sugar because you are out of sugar and you'll buy him some more next week, then sugar is a 'money'.

You do not need government approval to get a loan, the bank or some private individual signs this off, of course they must comply with government regulation but they do not need approval from the government.

How is bitcoin disruptive to states and governments? Your point here is irrelevant anyways as my above point explains.

Bitcoin can be money, in fact you could argue it already is, the most basic of defintions are along the lines of 'something that can be used as a medium for exchange of goods and services' one could argue bitcoin already fits this definition.

Bitcoin is not a gold substitute and never will be, they are entirely different things. There are of course similarities in that they are both scarce and finite. Otherwise they function very differently, bitcoin being digital and gold being physical are the most obvious of things. Bitcoin has steps to overcome to be accepted as a payment method but it is entirely possible this could happen, with gold it will not happen, it is too bulky to be used.

[3la9l_kolbaCa]

we are credited through the use of bitcoin but the centralization and acceptance of the government will be impossible up to this day because we all knew that bitcoin is not a government property and so many people are using it instead of banks. it can't be for real estate.

[dogandogru]

You can easily lend your BTC to anyone, but it is important to make sure about the reliability of the borrower.  If banks do not give loan in BTC then some decentralised companies will support this business idea. Now also there are some companies which are into these service, so it does not matter loan is of a private co. Or from a bank.

[LuanX3]

Some people argue that something cannot ever be considered as money if you cannot get credit through it, so for example you want to buy real estate and you need a loan, this needs government approval. How can Bitcoin ever reach that point of acceptance by a government if ultimately Bitcoin is disruptive against all states and governments? Or can Bitcoin be money even if it can only be used as a gold substitute?

Right now, I highly doubt that the banks will give you a loan using your bitcoins as collateral. Right now the governments are not even in support of cryptocurrencies yet. They will indeed deny you the chance of getting that loan. In fact, the banks are also against it as they see it as a threat to their business. Also another point to consider is the volatility of cryptocurrency. Since they will loan you fiat that would mean they would be exposed to exceptional risks due to the volatility. Say for example you loaned $19,000 and used 1 BTC as collateral back when prices were that high, they would be losing now since the price is just $10,000-$12,000 ranges.

[cellard]

How is bitcoin disruptive to states and governments? Your point here is irrelevant anyways as my above point explains.

Well if you have to ask this then I don't know what to say, it's pretty obvious that bitcoin poses an huge problem for capital controls in all states, as someone is able to move millions worth of money overseas, in a pre-bitcoin time, this was impossible, it is a game changer, and you no longer need a bank to store a ton of money.

My point was, you still need the state's approval to own real estate. You are not going to buy a house if the estate doesn't consider your money from legit origin. You can't magically bypass this fact.

[audaciousbeing]

Some people argue that something cannot ever be considered as money if you cannot get credit through it, so for example you want to buy real estate and you need a loan, this needs government approval. How can Bitcoin ever reach that point of acceptance by a government if ultimately Bitcoin is disruptive against all states and governments? Or can Bitcoin be money even if it can only be used as a gold substitute?

All of the things that we all think its not possible with bitcoin at the moment are only relying on just one thing to happen and every other things will fall in place. I can say boldly that the moment government recognises bitcoin as every other section of the economy and even going beyond the use of it as collateral, we will then be able to use it to pay for school fees, register for conferences, pay our taxes, shop in malls, pay for hotels, pay for concert, watch movies with it, and funniest one is even the payment of tithes and offering in church. How bitcoin can be used as collateral, its just for you to deposit your private keys, a form of restriction is placed on it then when you finish paying, you get back your details.

[Semosuchi Tesongrato]

To make a loan in Bitcoin is no different that to make one in a foreign currency: may be you gain, may be you lose.
I think that for now, with a so high volatility, it's impossible to use bitcoin for loan: to have a monthly payment of which you do not know the amount will be a too big stress!

[wantjokull]

Some people argue that something cannot ever be considered as money if you cannot get credit through it, so for example you want to buy real estate and you need a loan, this needs government approval. How can Bitcoin ever reach that point of acceptance by a government if ultimately Bitcoin is disruptive against all states and governments? Or can Bitcoin be money even if it can only be used as a gold substitute?

None of that really matters unless and until we see approval for the bitcoin itself. Lol.

Without that we are unable to use the bitcoin in real world. Buying real estate would cost you lot money and this transfer can be tracked very easily and you might get into cyberspace trouble. Anyway that depends on the country of residence and how does your government looks after it.

In addition to this, there are few of the stories (or rumours) where people bought real estate with their bitcoin but again we don’t have confidence on that how they did it.

My very first concern is government itself, as long as they don’t allow you to trade bitcoin legally until then there is no next move.

[Rulelies]

There are Coins and projects that can help with that. I know of Atlant because I did a bounty for them. You can check it out.

[Jeremiesaranza]

Some people argue that something cannot ever be considered as money if you cannot get credit through it, so for example you want to buy real estate and you need a loan, this needs government approval. How can Bitcoin ever reach that point of acceptance by a government if ultimately Bitcoin is disruptive against all states and governments? Or can Bitcoin be money even if it can only be used as a gold substitute?

You can use bitcoin  for loan for estate because bitcoin is a cashless currency it's like your bank account or your ATM card that you can pay anything with the power of bitcoin

[Cryptophorus Columbus]

In theory, it's already possible; but the bitcoin price is on roller coaster, moreover in these days, so it would be completely crazy to make a real estate loan in bitcoin: if you are on monthly paycheck, it would be too risky.

[SHOSHI ISLAM 5]

As more and more media outlets expound upon the rise of cryptocurrency; consumers and investors are looking at new ways to get involved. With increased optimism in cryptocurrencies like Bitcoin, those investing are speculating on the potential growth and use cases of this market that may not even come to fruition for another 5-10 years. Some people argue that something cannot ever be considered as money if you cannot get credit through it,How can Bitcoin ever reach that point of acceptance by a government if ultimately Bitcoin is disruptive against all states and governments?
With the rise of cryptocurrency value, crypto-investors will be heading into 2018 with more valuable assets. From car dealerships to eBay sellers, look for more vendors of all types to start accepting cryptocurrencies as payment. But, the vendors won’t necessarily want to speculate on future value and will look to trade crypto back to cash. That could put some downward pressure on crypt.