The Difference Between Bitcoin Mortgages And Bitcoin-Backed Loans

Key Points

1. Bitcoin-backed loans allow borrowers to use Bitcoin as collateral without selling it, thus avoiding capital gains taxes.

2. Traditional mortgages require predictable and taxable income, which may not suit those with significant Bitcoin holdings but irregular income.

3. Bitcoin-backed loans provide access to financing without income verification, leveraging the borrower's Bitcoin assets as creditworthiness.

4. The lending market for Bitcoin-backed loans is becoming more competitive, offering new opportunities for Bitcoin holders.

5. Bitcoin-backed loans enable borrowers to retain their Bitcoin investments while accessing liquidity, unlike selling Bitcoin for a down payment which can trigger significant tax liabilities.