3 ms·
Along those lines, can you imagine getting a home loan in bitcoin?
by eyeinthepyramid 9y ago
Along those lines, can you imagine getting a home loan in bitcoin?
- anonymous5133 9y agoWe have already figured out how to do that with crypto. You simply use a smart contract that dynamically adjusts to variables. In essence, the home loan lender is interested in getting back the initial value they lent plus interest, another form of value. The price of bitcoin per unit doesn't matter. The only thing that matters is how much value each unit represents. Thus, you can use a smart contract to dynamically adjust the mortgage payment at the time of payment. The contract could be written such that it says "borrower is to pay $3,500 in USD equivalent value in bitcoin each month". Assuming bitcoin price is increasing, your mortgage payment each month would require less bitcoins to pay and the lender would be happy too because they are still getting their $3,500 of value per month. The lender could immediately sell their bitcoins if they want physical cash. Also this is already being done with point of sale machines that accept bitcoin. The POS machine simply goes to an exchange to see how much one bitcoin is worth then tells the buyer to pay xyz amount in bitcoin that is equivalent to the value that USD represents.
- grey-area 9y agoThis neatly illustrates why bitcoin is a terrible currency. Thanks.