Oddbean new post about login | logout Andrew Hohns, Founder of Battery Finance, explains how bitcoin as additional collateral will revolutionize traditional commercial real estate loans. Bitcoin will be intertwined into the entire global financial system as a foundational asset. https://cdn.satellite.earth/8bfdb462692e5295a730c4ddebb08de0b954a66c7918674767cf3bc82045aa3a.mp4
These clips always remind me of that segment on the Today show where the hosts were confused on the value of email and how it works. These guys are going to look so ridiculous in a few years.
Just like @leonwankum has been saying for some time...
I was posting about this in 2020 on the Financial Times website... articles about CALPERS taking risky strategies to close the gap The Legacy Finance guys couldn't comprehend... laughed me out of the chat Cracks in the dam though.... the word is getting out A lot of pre-coiner pension managers will wake up in next 5-10 years We're gonna win
We’ve won
There are so many questions. Who holds the keys to Bitcoin? I assume it's either the lender or a multisig (preferably) with a time lock for 4 years. Is there a liquidation in case of a 40% dump? Who gets to keep the profit in case BTC overgrows the amount of the loan? Will bank get the loan + interest back and will give the profit to the borrower? It's an interesting idea.
BWAHAHAHAAA people are gonna get so rekt. The key piece of information here is that the #bitcoin is added to the collateral for the loan. That's probably fine right now, but what happens when people ape in next summer? They lose their home or their bitcoin. Banks always find a way to steal from us. Burn them, bring out the guillotines, use lead, do whatever it takes to exterminate the banks. Peacefully, ofc, but with fire. Don't be a fiat brain - this isn't about pumping your bags. People will get hurt. nostr:nevent1qqsqyd56f7l04fs2g2gz3wv6rqutq6tdjlqyspuarv68jhrmpsmqffsppemhxue69uhkummn9ekx7mp0qgs2sjd7kmh6l4n4lclkzcjpckfln8gjcg7mkkdmk07dw90ykvn7d5srqsqqqqqpsy3guq
It’s fucking happening. Once they prove this concept, Nation State and global adoption race will follow. Faces will melt. LFG…
What an incredible scheme to steal bitcoin. Its like an affinity scam on steroids. After every bull run, there's a crash. Then the collateral is below some threshold, and they get to steal your btc. F that.
I don't think there is a liquidation of the collateral BTC. My assumption is that a 4y holding period applies for both parties. However after 4 years, and at any point after those 4y, you get to choose to sell it in case of a bull run that would possibly allow to pay off the mortgage quicker.
That would be different from bitcoin lending schemes that already exist. The collateral's value in dollars has to stay above a threshold, and if it falls below that, you have to add more collateral or get liquidated and lose some of your btc. An example you can investigate yourself is Ledn's bitcoin loans, where you post btc collateral to borrow dollars to buy more btc. Cool idea... But some people have lost that bet. I would not assume these wall street parasites will be more benevolent. People will ape in at the top of the market, then the bank will legally steal their btc.
It's an asset they hold along with the house. Your house doesn't get liquidated when the market goes down. Why would they liquidate the corn?
Battery loans not mark to market. The loans are for a 10yr duration. Battery is discussed here: https://ten31.vc/insights/bitcoinscarcerthanyouthink
Incredible use casein too of the other dozens nostr:nevent1qqsqyd56f7l04fs2g2gz3wv6rqutq6tdjlqyspuarv68jhrmpsmqffspr4mhxue69uhkummnw3ezucnfw33k76twv4ezuum0vd5kzmp0qgs2sjd7kmh6l4n4lclkzcjpckfln8gjcg7mkkdmk07dw90ykvn7d5srqsqqqqqp9hl3ac
Congrats guys. This is huge. Andrew is a great spokesperson for this space.
True innovation in tradfi…Love it
TOTAL BULLSHIT We discuss it on SN https://stacker.news/items/779170
The moral complication is that you’re inflating the money but also pushing up the demand of a competing currency. In the short run it’s creating a small amount of inflation but in the long term, you’re able to pay off debt and stack sats driving up Bitcoin. This is tough. Similar to how many people take out mortgages on their home at a low rate to stack Bitcoin. I think it’s a gray area morally. Mortgages in general are grey. If we don’t pay ball, the landlord will. At least if we control the mortgage, we can pay if off rather than rolling it into other bigger properties.
crazy
Makes sense .. they'd do it with Gold but gold is going away, too linked to the US dollar. Bitcoin is EATING the US dollar.
We have just taken out a mortgage for a new build house, simultaneously we hodled 10% of the mortgage value in #bitcoin. This stack will be used to pay off the mortgage in 10 years time if we choose to. Within 5 years #bitcoin will be used for all mortgages and pensions. around the globe. This is going to be a huge market for banks and all institutional investors. nostr:note1qgmf5na7l2nq5s5s9zue5xpckp5km97qfqre6xe509w8krpkqjnqnqjqdf
So basically requiring your borrower to buy bitcoin with part of the loan proceeds and post it as additional collateral? nostr:nevent1qqsqyd56f7l04fs2g2gz3wv6rqutq6tdjlqyspuarv68jhrmpsmqffspr4mhxue69uhkummnw3ezucnfw33k76twv4ezuum0vd5kzmp0qgs2sjd7kmh6l4n4lclkzcjpckfln8gjcg7mkkdmk07dw90ykvn7d5srqsqqqqqp9hl3ac