Thursday, October 6

Financing houses with bitcoin as collateral: an alternative to take refuge from inflation

Key facts:
  • Bitcoin and real estate will serve as a hedge against inflation, according to analysts.

  • The chances of Americans buying real estate with their BTC as collateral are increasing.

As 2022 progresses, the main message from multiple financial institutions around the world is the same, as concerns center around rising inflation. To that same extent, concern is growing about alternatives to take refuge from the loss of purchasing power and some analysts believe that both bitcoin (BTC), and the purchase of houses or properties, can be good investment alternatives for this year.

Gonzalo Bernardos, full professor and director of the Real Estate Master’s Degree at the University of Barcelona, ​​in Spain, believes that “exceptionally today housing is a refuge against inflation«.

For the teacher, there is so much uncertainty due to the pandemic that the banks will not dare to raise interest rates, even if there is inflation, because by doing so they could slow down the recovery of the economy. And that is why it is a good time to buy a home and put it up for rent, just as he pointed para Business Insider.


Taking refuge in bitcoin is another alternative to protect yourself from inflation. It is because cryptocurrency is seen by many as a store of value. This taking into account that one of its properties is that the maximum number of coins that can be created is defined in its protocol and, therefore, it will only be 21 million.

The supply of dollars or euros expands much faster than that of housing or Bitcoin, therefore, if we expect a stable or growing demand for both assets, which is very likely, in the medium and long term they will serve as protection against inflation.

José Basagoiti, economist, CEO and co-founder of TradingPRO.

Keep in mind that bitcoin is more profitable than buying a house to rent, especially at this time when the ghost of inflation favors the consolidation of the price of bitcoin, as CriptoNoticias has reported. But also bitcoin hodlers can get attached to the opportunity to sustain potential BTC price appreciation and its real estate.

100% mortgage, without banks and backed by bitcoin

As analysts see bitcoin and housing as good investment alternatives this year, offers from various fintech companies have also started to surface. One of them is Milo, which has just launched an offer for Americans to buy homes and other real estate. using your bitcoin funds as collateral.

Milo’s service allows you to finance 100% of the purchase of a house, apartment or other type of property, without having to make deposits in dollars. As detailed in a release, the company offers many more facilities to obtain a mortgage that if you would have to go to the banks to opt for a conventional one.

To apply for the mortgage, people can deposit their bitcoin and obtain financing with a low interest rate for 30 years, according to the company, although it did not specify the figure. In addition, it ensures that your customers can continue to hold your bitcoins, while using it as collateral to buy real estate.

“This solution will allow customers to continue to own their bitcoin and diversify into real estate, all while maintaining the potential price appreciation of both. Customers will be able to finance 100% of their purchase without the need for initial payments in dollars and do so faster than with a conventional mortgage,” the statement said.

Milo is not the first company to offer this type of service, as last month Ledn announced a similar offer for Canadian residents, which would be available in the United States early this year.

In this case, to access the loan, the user must have an amount of bitcoin equivalent to the value of the property that you are buying or that, failing that, you already own. Both the BTC and the property will be accepted as collateral, and a loan equal to 50% of the combined value of both assets is issued. All this is possible without the need to sell any of the satoshis (minimum bitcoin unit) that the Ledn client has.

On the other hand, in Spain the possibility of paying the mortgage of a property directly with bitcoin would become a reality if the Digital Transformation Law project presented by the Popular Party (PP) in the middle of last year is approved.