Cryptocurrency is making its way into a wide range of sectors. Disruption is taking place, and it appears to be increasing in speed.

Keep an eye on how things are progressing as a result.

There is a lot of money to be made in real estate. It's worth hundreds of trillions of dollars around the world. Cryptocurrency is now being used to buy and sell real estate. A whole new world of possibilities is opened up.

We talked about Tokenization of Real Estate a few months ago. It's early days, but we can see the potential of what's developing.

New Financing Methods

With regards to financing, real estate is fairly straightforward. Cash or a mortgage is typically the only option. When it comes to the latter, it is important to remember that the main assumption is to receive a loan backed by a property. It's been like this for a long time now, it seems.

The homeowner, of course, made the monthly payments to avoid default. That would eventually lead to full ownership of the property over time, unless the loan was refinanced.

Mortgage lending became a large sector because of the overall value of the homes. This type of loan is worth billions of dollars each year.

A new player has entered the fray: crypto currency. How does it accomplish this, and will it be revolutionary?

Bitcoin loans have been around for a long time (relatively speaking). Recently they've been a part of the Decentralized Finance (DeFi) group. It's basically a way to get a loan on your Bitcoins by putting them up as collateral.

It all started with the purchase of a house for his mother by an engineer. Bitcoin, not a house, is the asset that's on the line. The Bitcoin is safe as long as the payments are made.

An additional layer of danger exists. Due to a drop in the value of Bitcoin, additional collateral may be required.

This isn't an option with a conventional loan. The value of the house only comes into play once the financing has been started. Outside of a refinancing context, it has no significance whatsoever.

Unsecured Real Estate Loans With Cryptocurrency

What impact will a move to unsecured loans have? In this way, credit cards work. The loaned funds are not backed by anything. Consequently, a loss is experienced if default occurs.

DeFi is bringing fresh ideas to the lending industry. The first indication of this has already been seen.

It was sold for $680,000 in Austin, Texas. This house cost $500,000 to buy with an unsecured loan. How did this come to be?

The buyer made a down payment of 20%. The Polygon network was used to transfer $500,000. It was decided that the rate of interest would be 5.5%.

Here's when creativity comes into play. In order to pay down the mortgage, the down payment was staked. That works out to 68% of the loan payback, according to this report.

A credit score and an examination of online activity were all that was needed to acquire the finance. Because the down payment is derived from farm income, the lender's risk is minimized.

Combo of Yield and Stablecoin.

Hopefully, people are starting to see the benefits of a stablecoin with a high rate of return. Innovation widens the scope of possibilities by enhancing the utility of a product. There are a myriad of options when cashflow is integrated into models, as was the case here.

We talked about the potential benefits of the Hive Backed Dollar. This is another example of how developing a use case for the token would lead to a higher level of acceptance.

Many people are fixated on the speculative side of things. Commercial business worth $500K was completed in a single transaction here. Down payment of $180K could be invested in the Hive Savings Program, which pays a 20 percent rate of interest.

This may even be coupled to a time-locked vault, like a 30 year one. The lock-up period matching use case can be seen here. Of course, this would be at the very bottom, removing some of the uncertainty. Is it really necessary to keep HBD in a locked room for so long? Here's a good one. A longer-term financial obligation is matched with the HBD in this situation. The "security" of this transaction is given by the cash flow generated through cryptocurrency staking.

In fact, a whole bond tree might be constructed to meet a variety of needs.

This is why the stablecoin market has so much promise.

In A Banker's Words

We need a new way of thinking if we want to see the full scope of what's conceivable. To put it simply, this means thinking like bankers.

The banks are well-known for controlling the global economy. For the past seven decades, this has been the case, and it will continue to be. With full control of the money creating machine, their authority skyrocketed. Unrivalled power has been amassed by the multinational bankers since they operate outside the reach of any government or even central bank.

This is something that can be countered by cryptocurrency and its accompanying tentacles. After seeing that money can be created, we may now apply the same creativity that they do. The volume of cryptocurrency transactions increases as we move from one industry to another.

In this approach, cryptocurrencies can pose a real danger to the global banking cartel. It's enlightening to consider the options.

It ultimately boils down to the creation of flawless collateral. The bitcoin business has a unique potential.

That's why it's so easy to understand how quickly it may pile up to some serious cash.

Real estate is becoming a new frontier for cryptocurrency. This is a multi-trillion-dollar industry. We're only seeing the beginning of the technological revolution. For the next few years, this is expected to grow.