In a few years, could your next loan be Bitcoin backed? A mind-blowing concept, isn’t it? And that’s exactly what investment expert Anthony Pompliano and Schiff Gold chairman Peter Schiff sat down to debate during a episode from the Pompliano business lounge.
Bitcoin in the house, literally
Could Bitcoin Help You Buy Your New Home? Like Schiff Noted, volatility would be a concern for many. However, Pompliano discussed two main aspects this could make it possible – The divisibility of Bitcoin into satoshis and a liquid market.
Using a hypothetical example, the exec noted,
“I can sell a piece of Bitcoin in the market… I could sell $ 1,000 at a time if I wanted to, and I can make sure I never lose money on the loan. Because I can always liquidate the oversized part that I have, to avoid any kind of fault.
Meanwhile, Schiff compared loan against Bitcoin to use stocks as collateral. However, he was a firm believer that small individual stocks could also be sold like Bitcoin.
For his part, Schiff underline the risk of people missing out on their margin calls due to a drop in the price of Bitcoin. He also expressed concern that banks could liquidate people’s Bitcoin under such circumstances, which would lead to market dumps. He noted,
“The reason I think lending against Bitcoin is inherently riskier than lending against stocks… is that I think Bitcoin is more volatile than stocks… more prone to a big move.
As expected, Schiff was not very optimistic about the idea of El Salvador’s volcanic bonds. Here, it is interesting to note that macroeconomist Lyn Alden called this plan the “Michael Saylor’s playbook for a country.
Take out the chips
As previously reported, 39,000 Bitcoin have returned to crypto exchanges. But, at the time of going to press, the the price of Bitcoin was $ 48,507.42 after plunging 13.62% in one day. Many wondered whether to buy the drop or not, but two major players in the industry had no doubts what they had to do.
One of them was Salvadoran President Nayib Bukele who claimed the country had purchased 150 coins. Following the same, Bukele also disputed Tron founder Justin Sun improved his game. Soon it looked like a competition was underway.
– Justin Sun (@justinsuntron) December 4, 2021