Utilizing Bitcoin as pristine collateral for mortgages

By Matty Ice Guest Columnist

Part 2 of 2

Additionally, because Bitcoin is not controlled by a central authority, it can potentially provide more flexibility and freedom in terms of making and receiving payments. This can make it an attractive option for those who are looking to avoid the fees and restrictions that are often associated with traditional financial institutions.

However, there are also some potential drawbacks to using Bitcoin as collateral for a mortgage. One major concern is the volatility of the value of Bitcoin. Because the price of Bitcoin can fluctuate rapidly, it may not be a reliable form of collateral if the value drops significantly before the loan is repaid. This means that there is a potential risk that the borrower could end up owing more than the value of the Bitcoin they used as collateral, which could

Class Page 1

plan to guide their start-ups. They work with mentors who are successful businesspeople and hear from subject matter experts in areas of accounting, legal, marketing, insurance and funding. An easy-to-use workbook, used by put them in a difficult financial situation. Additionally, the use of Bitcoin as collateral may be subject to varying regulations depending on the location of the borrower and lender, which could create uncertainty and complexity in the loan process.

In order to mitigate these risks, it is important for both borrowers and lenders to carefully consider the potential benefits and drawbacks of using Bitcoin as collateral for a mortgage. Borrowers should carefully assess their ability to repay the loan, considering the potential fluctuations in the value of Bitcoin. Lenders, on the other hand, should carefully evaluate the borrower’s ability to repay the loan and should consider implementing risk management strategies, such as requiring a higher down payment or setting limits on the amount of Bitcoin that can be used as collateral. When it comes to mortgages, I believe there is a lot of potential in augmenting the process to maybe remove PMI Obligations or potentially offer Bitcoin as extra collateral in addition organizations across America, assist in transforming vision into a plan for a successful business.

A recent program graduate said, “This course helped me to organize and plan out the steps for creating my business. Coming in, I had no idea how to start a business that would lead to success, and now I have that.” to the property being collateral on a loan. By offering additional Bitcoin as collateral in addition to the property itself, perhaps a mortgage company will offer better rates for purchasers.

While using Bitcoin as collateral for a mortgage may be an option in some cases, it is important to carefully consider potential risks and benefits. It may be wise to consult with a financial advisor or other expert before deciding. By carefully assessing the potential risks and benefits, borrowers and lenders can make informed decisions and can help to ensure the use of Bitcoin as collateral for a mortgage is a successful and sustainable practice. This is just the beginning of a concept that will continue to gain steam over the years and is being worked out by many new companies right now.

Matty Ice is CEO of Consensus Protocol. Contact him at Matty@consensusprotocol.org of (239) 682-2247.

To apply, visit www.goodwillswfl. org/microenterprise, or call (239) 9952106 ext. 2215. The session is $80; Volunteer hours can be substituted for the fee if income requirements are met. For more information, email Sandra Plazas at sandraplazas@goodwillswfl.org.

The Goodwill Southwest Florida MicroEnterprise Institute is adminis- trated by the nonprofit Goodwill Industries of Southwest Florida and is part of Goodwill’s mission of providing life-changing opportunities toward independence for those with disabilities and disadvantages.

For more information about Goodwill Industries of Southwest Florida, visit www.goodwillswfl.org.