Home loans using crypto as collateral: Do the risks outweigh the reward? By Cointelegraph

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Home loans using crypto as collateral: Do the risks outweigh the reward?

Published May 25, 2023 09:30AM ET Updated May 25, 2023 09:20PM ET

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Home loans using crypto as collateral: Do the risks outweigh the reward?

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Im never gonna bother with that bullshit again, says Bitcoin OG Michael Tozoni about getting a crypto home loan to invest in property.

After becoming wealthy-ish with Bitcoin investments, Tozoni sensibly decided to diversify. Not wanting to sell off his crypto, he had grand plans to borrow to buy investment properties and use the rental income to pay off the loan.

The only trouble was that banks arent the slightest bit interested in wealthy Bitcoiners, preferring poor wage slaves instead.

Michael Tozoni took out a Bitcoin-backed loan hoping to diversify into property. (Supplied)

If you are broke and you have no money, but you have a job and a constant income, banks will be very happy to give you money,” he says. “If you have a lot of money and a lot of investments, but no income, banks do not want to give you money.

Adam Reeds, CEO of Ledn. (Laura Proctor)

Jarrad Parke from Black Tie Digital. (LinkedIn)

Read also

Features

You can buy your dream home with a crypto-backed loan… but it might turn into a nightmare. (Pexels)

https://twitter.com/BabaCugs/status/1606054211577188355?s=20

Michael Tozonis plans to diversify out of crypto into property went south. (Supplied)

Try and avoid Bitcoin price action like this if you have a crypto-backed home loan.

Crypto-backed loans are inherently risky due to volatility. (Pexels)

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