From BTC vs Real Estate Dualism to a Dual-Way Bridge
Real Estate is designed primarily for living but has emerged as a store of value in an era of depreciating fiat currencies. Bitcoin, designed specifically to provide a saving technology and the best hard money ever, is empowering its holders with a superior store of value, both for its properties and for effectively appreciating far more than Real Estate.
Although still many believe Bitcoin is a virtual asset, the wealth locked in a property is virtual until its sale, whereas Bitcoin is always accessible, being digital native, liquid, fractionable, portable, and transferable borderless, permissionless, 24/7.
But how do we move from the theoretical opposition between Real Estate and Bitcoin to bridging them concretely and accelerate the transfer of value locked in bricks into cyber capital?
Trend of the average housing price in the United States, in USD versus BTC.
Materializing bitcoin value without selling / Dematerializing Home Equity to buy bitcoin
Despite the upside that BTC offers when held long-term, it's human, and even rational, to want to turn the value stored on the Timechain into quality time off-chain, in the physical world.
Among physical goods, owning a home is one way to materialize self-sovereignty by customizing and independently managing our living space.
Coinlateral is therefore on a mission to make innovative financing solutions accessible, enabling:
• Bitcoiners to neither give up on purchasing their home, nor selling their coins.
• Homeowners to convert a portion of their home equity to start or increase their bitcoin stack.
Your Home, Your Coins.
You don't necessarily have to choose between the two asset classes, you can combine them as collateral to:
- Buy a home by securing a mortgage collateralized by both your BTC and the new property.
- Unlock your home equity to buy BTC.
The first Real Estate and Bitcoin integrated credit products specifically designed for bitcoin holders are now listed on the Finder.
Coinlateral is creating partnerships to expand and adapt these innovative products from the US to the European market.
And what if there were a way to convert a portion of home equity into bitcoin without the cost and constraints of debt?
Home equity
The combination of Home Equity Sharing and Bitcoin enables new possibilities and benefits for Bitcoiners, families, and Real Estate businesses.
Homeowners typically have over 70% of their net worth tied to their primary residence. Converting a portion of their home equity into bitcoin allows them to avoid concentrating their wealth in a single physical property by diversifying into Bitcoin, as a liquid and global asset.
Not having to choose between a home and Bitcoin avoids selling coins and destroying value, letting it grow over time.
Individuals and families can become debt-free faster if they use the appreciation of BTC to make an early repayment of the mortgage.
Real Estate properties are considered a store of value that protects against inflation, but if this value is inaccessible, it is virtual wealth that does not offset the loss of purchasing power of workers and families caused by fiat currency devaluation. Instead, Bitcoin was specifically designed to reverse the debasement of fiat currencies and empower saving again with a better currency, non-inflatable by anyone.
By integrating BTC into financing, RE developers and investors can increase credit power to launch more projects, preserve and increase the quality of building development, gaining a competitive edge.
Since Equity Agreements are structured as private contracts rather than registered securities, homeowners benefit from the flexibility to select various term options to align with their personal financial goals and planning needs.
Introducing ₿EST–Bitcoin Equity Sharing Treasury.
Turn Home Equity into the Best Macro Asset.
Coinlateral is developing partnerships to launch ₿EST–Bitcoin Equity Sharing Treasury–enabling homeowners to turn a portion of their Home Equity into a Bitcoin Treasury, with no debt costs and monthly payments, by sharing BTC returns with Coinlateral.
Homeowners will be able to choose between two main options of equity and profit sharing agreement:
one involves the collateralization of Real Estate equity, while the other is debt-free (no lien) through a novel model of equity swap.
For both solutions, the management of the shared treasury is based on a multi-sig collaborative custody system, Bitcoin way: security through transparency.
A solution dedicated to professional Real Estate developers and investors is also in development.
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The market of financial products integrating Bitcoin and Real Estate is in its earliest phase, and Coinlateral aims to become a reference point for providing insights and contributing to its development.
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