There are some stories floating around of people mortgaging their houses to buy Bitcoin. Does this make any sense? Are they insane? Maybe. Let’s look at it from their point of view.
Imagine this. You are a family man. You have a wife, four children, and a house with a mortgage 25% paid off. You are in a job that allows you to pay all of your bills and not very many savings, on which the interest is pitiful.
You've read about Bitcoin, which when you check the chart, you see is surging exponentially. You realise it actually is what it claims to be, and you understand that its size compared to the gold market is tiny.
You do the math.
Bitcoin at $16,000 could easily double; in fact there is no way that it cannot double if it fulfils just one of its potential use cases, never mind eBay and Facebook Messenger incorporating it for their hundreds of millions of users.
There is no way that Bitcoin is not going to reach $32,000. It is not possible that it doesn't reach that number. If you mortgage your house now, at historic low rates, you will be able to pay off the loan in short order. Then you will have the Bitcoin you purchased debt free. If Bitcoin goes down after that, it doesn't matter, because you have it free and clear. When it goes up again, you have nothing but gain.
When Bitcoin fulfils its promise, you’ll be able to pay off your mortgage, send your four children to Harvard, buy them each a house, and many other things, because you won’t be a nocoiner.
The price of a banana in Venezuela today. Their paper money is no different in nature to yours.
Remember this also. If Bitcoin does what everyone thinks it will do, in the end, fiat currency will become worthless. Paying off your mortgage will become more expensive for you when government set interest rates shoot up. As hyperbitcoinization starts, no one will want your fiat currency in exchange for Bitcoin at anything other than astronomical rates.
People who are very young, single, without any responsibilities or long term financial commitments can’t understand why someone would take what looks like a big risk by mortgaging their house for Bitcoin. They don’t have mortgages. They live out of rucksacks with just a laptop and a bag of nootropics in their pockets, and that’s perfectly fine. People with clear multi-decade burdens on the other hand, have a completely different perspective.
And they are not stupid either.
Am I telling you to mortgage your house for Bitcoin? Obviously not. I am simply explaining how other people are thinking, and why they are doing what they are doing. In a free society, people are at liberty to take risks and benefit or fail. In this case, the potential benefits are very great.
The price of Bitcoin at the time of posting this is $16,452.76 Lets see if the price doubles as I predict it will. If it does, and you’ve mortgaged your house for Bitcoin and survive hyperbitcoinization you owe me! ⤵