Crypto as Mortgage asset.
20-06-2022
Crypto currency working as alternative payment method to fiat and acceptable in thousand of places. People around the globe utilising Crypto freely and securely without limitation of borders. Pure ownership Freedoms can be feel in its entirety.
Today another value added benifit of Crypto comes to my knowledge that some individual businessmen of money exchange Field started business to keep Crypto as Mortgage asset and giving loan in fiat currency PKR to people with some conditions. I surprised totally by this innovation of fertile minds.
BTC , BCH, doge & ETH are main coins here in Pakistan where most of people invest , trade and utilise. According to a Forbes report Pakistani community reached to $20 billion worth share in Crypto market.
If this trend of Crypto as Mortgage asset gets good adoption , the banks will be first ones who will go in Lose. They are issuing loans against property , gold , movable assets with 13-20% profit margin. But Crypto innovaters started from 3-5% margin only. Which is first golden attraction to the people.
Although I still didn't like it's some conditions like assets will be back to owner only after completing tenor which signed by both parties on initial stage. He can't claim back before the maturity even he is willing to pay back full payment.
The good thing in it is the profit/ lose on Crypto asset will be Property of owner. Fir example I took loan of 50K PKR against 2 BCH for one year. They have nothing to do with price of BCH, on return of principal amount + profit 3-5% I will get back my full 2 BCH.
It is initially soft conditions to get the costumer's attention and let people use to this new facility in the country. These people are well known , stable business holders , Money exchange owners and good visibility in market.
People can get fiat money in bearish market against Crypto without selling them and can claim back after maturity. I am sure they will use our assets in trade and other things but for common people it is facility of loan to fulfill the needs without loosing Crypto assets. What are the setbacks , negative thing we will know only after the certain time when it goes familiar to most of crypto holders but one thing is certain that the transactions of crypto will get boost which automatically will generate the store value.
Thanks for reading innovative story from our region where Crypto stars work like real Gold. Like upvote and leave a comment for feedback and to know your thoughts.
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At least there two benefits that a bank can't give, and surely there is Risk as well I think so. you get money to spend on necessities on other hand you still have your crypto. Risk. I think if your mortgaged assets price fall below your loaned amount you'll lost your assets.
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