A Loan That Believes in HODL

🏡 In Australia, a new company has launched that offers real estate loans backed by Bitcoin.

Here’s how it works:

• You transfer BTC to the company (say, worth 100,000 AUD)
• They lend you 40% of that value (in this case, 40,000 AUD)
• Over the next four years, you repay the loan in monthly installments
• Once the loan is paid off, you get your full BTC back

It sounds like an overcollateralized DeFi loan, but with one key difference:
Even if Bitcoin drops by 60%, your collateral won’t be liquidated.
You’ll still get 100% of your BTC back. The price volatility risk is entirely on the lender.

This means we’re looking at a company willing to bet large sums on the assumption that Bitcoin won’t crash more than 60% over a four-year period.

That’s a pretty big shift in mindset. Not long ago, it was widely accepted that BTC regularly dips 80% every cycle.

P.S. Personally, I’d love to see BTC used not just as collateral, but also as a means of repayment — so borrowers wouldn’t have to scramble for fiat every month. Just deduct the monthly payment from the BTC collateral at market price. Kind of like reverse DCA.

Does anyone know if any service already does this?

P.P.S. Don’t forget: Bitcoin is always available for exchange at the best rates on rabbit.io 🐰