Last week, Brock Pierce bought a home for $1.2 million using Bitcoin. But listen, this is nothing new. Or is it??
Every now and then, we hear of some crazy purchase made with Bitcoin or another cryptocurrency. Yeah, it's interesting. Yeah, society still isn't tailored to accepting crypto as a payment. But that's what makes purchases like this kind of cool to hear about. So why am I talking about another random purchase with Bitcoin? Well, because it's not that simple, and it's brilliant.
Brock Pierce didn't just buy a very expensive home with Bitcoin, he loaned the money to himself. Okay, yes, it sounds a little different. But let me break down why this was brilliant, and how I'm doing the same thing on a much different level.
Nexo is a company that allows you to borrow against your own crypto, up to $2 million dollars or something crazy like that. Using a loan-to-value model, you can borrow the money you need, payment almost nothing in payments (other than interest), and still HODL your hard earned crypto.
Sure, Bitcoin could collapse and you might lose your collateralized Bitcoin. Unless... you use it to buy another asset. This is where my genius kicked in.
Sure, buying a house is reasonable, but he wants to live in it, and make it a liability, not an asset (thank you Kiyosaki for the wisdom).
Instead, why not reinvest? That's what I'm doing. I won't stay how much or how little, but why not leverage your crypto to buy more crypto! Or even better, stake that crypto! Or even better than that, invest in NFTs (Non-Fungible Tokens). Guys, this is a wide-open market and Nexo is giving us a blessing to invest heavily, especially when we are close to another bull market cycle.
I'll just say this. ICOs were a boom. Futures contracts were a boom. Mining even drove the market for a long time. But Dapps and Staking, these will be massive market drivers and that's where I would put my money right now.
Excuse me, my crypto-backed loan.
I remember this exact moment last year. I was in the process of launching my book "The Satoshi Sequence" and a mining company. So much was escalating in the crypto sphere it was almost suffocating. I was fortunate to have been vocal about Ethereum at the time. In fact, I had my finger on the button 2016, saying that Ethereum was ushering in a 2nd Generation of blockchain tech. In 1 year, I watched Ethereum rocket up from $7 to over $1200 by the end of 2017. That was incredible to be a part of.
With that said, 2018 has been the polar opposite. It's funny how the same people that I knew in 2017, that were rushing to buy crypto on Coinbase, are now running away from crypto at the same frantic pace. That's how I know this market is young. The lack of education has prevented many people from adopting the technology. Including major institutions.
Despite the doom-and-gloom of 2018 and the market bloodbath, there is 1 project that has stood out to me, which is Pundi X. Great team, deflationary revenue model, built for scale, and producing physical products (e.g. XPOS and XPhone). The advent of products and services being coupled with blockchain will drive adoption much faster than any financial instrument. I have been saying this for a long time. Blockchain is a new technology, and it will only be understood when our generation can interact with it. I'm talking Online Gaming, Storage, Smart Contracts, Dapps, Encrypted Communication, Verified Voting, Autonomous Organizations, Monetization of Personal Information, etc etc etc. I could talk about this forever.
For now, enjoy this picture of a Z9 Mini sitting on top of Pundi XPOS boxes.