Bitcoin Use Case

I recently completed a HELOAN to pull equity out of my home.

Factors such as declining birth rate, expiring boomers, immigration policies, and investment capital transition from real estate to Bitcoin, strongly suggest a significant future decline in demand for housing. I’ve therefore concluded funds previously tied in our home would be better utilized elsewhere.

I also recently took out an experimental loan against Bitcoin in order to understand the process and gauge the complexity.

HELOAN: Credit check. $1,800 appraisal fee. Hassle of multiple Reconsideration Of Value requests. Endless documentation requests. 6 week process. I was out of the country when the loan was ready to sign, had to wait another week until I returned stateside to sign and close on the loan. Origination fees. Title and other fees, 45 minutes document review and signing, 3-day waiting period.

BTC-backed Loan: Decentralized. No fees. Total of 15 minutes to submit collateral, request loan and transfer funds. Lower APR than HELOAN (because our income is from our business the HELOAN was a bank statement loan which comes with slightly higher rates). 6.75% from Morpho.

The two assets (home and Bitcoin) are not comparable. Accessing wealth tied in a home is a painfully expensive and time consuming endeavor. Stupidly so, really. Accessing wealth stored in Bitcoin however, is simple, quick and permissionless.

Several times during the HELOAN signing I chuckled out loud as I reflected on how incredibly archaic this method of accessing wealth was relative to accessing wealth stored in the pristine capital of Bitcoin.

Next time someone suggests a lack of use case for Bitcoin, kindly suggest they pound sand.

“Yeah, but you can’t live in your Bitcoin.”

• Some moron, probably