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.