cc.Link
  • Home
  • News
  • NFT
  • Videos/Tips
  • Mining
    • How to Mine Bitcoin
    • Top Mining Software
    • Mining Articles
  • Tools
    • Live Crypto
    • Free Wallet
  • Live
  • Marketplace
  • Contact us
No Result
View All Result
cc.Link
  • Home
  • News
  • NFT
  • Videos/Tips
  • Mining
    • How to Mine Bitcoin
    • Top Mining Software
    • Mining Articles
  • Tools
    • Live Crypto
    • Free Wallet
  • Live
  • Marketplace
  • Contact us
No Result
View All Result
cc.Link
No Result
View All Result
Home News

Report: Crypto mortgages are too risky

ccLink by ccLink
May 4, 2022
in News
0
Report: Crypto mortgages are too risky
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

Bitcoin on Verge of Breakout Towards $30K, But These Metrics Suggest Market Might Be Getting Too Hot

Bitcoin on Verge of Breakout Towards $30K, But These Metrics Suggest Market Might Be Getting Too Hot

March 21, 2023
Crystal Blockchain Study Reveals $16.7 Billion in Crypto Assets Stolen Since 2011

Crystal Blockchain Study Reveals $16.7 Billion in Crypto Assets Stolen Since 2011

March 21, 2023

U.S.› Investments

Weiss Rating report stated that pooling crypto loans could be risky as it it was a similar strategy that led to the housing market crash and the Great Recession of 2009.

1 min read

Updated: May 3, 2022 at 6: 37 pm

Cover art/illustration via CryptoSlate

A new Weiss Rating report has warned about the risks of having mortgages backed by cryptocurrency, especially in the world’s current economic situation.

The Florida-based research firm analyst Jon Markman, in the report, identified the poor performance of crypto and stocks this year, plus the rising interest rates, alongside the policy changes of the Federal Reserve and the housing bubble as reasons investors have to exercise caution with crypto mortgages. 

“The product seems to be like a win-win, assuming real estate and crypto prices keep rising […] except there are signs both bets are unlikely to be winners in the near term. Bitcoin is off by 40% since it reached $66,000 in November 2021.”

The report specifically cited Milo, the digital bank offering 30-year mortgages backed by Bitcoin, Ethereum, and stablecoins. The bank does not mandate borrowers to make any down payments, and the interest rate ranges from 3.95% to 5.95%.

Borrowers can choose to pledge their crypto assets as collateral, allowing them to spend the crypto and enjoy any rise in prices. But if the price should fall, there could be some risk for borrowers.

According to Markman, the plan to pool crypto loans could be very risky, given it was a similar strategy that led to the housing market crash and the Great Recession of 2009.

But the terms and conditions of these loans appear to cover this by providing that the value of collateralized cryptocurrencies must not dip beyond 35% of the total loan amount, after which the user has to top his collateral within 48 hours.

Already, Milo has raised $17 million, and it plans to use these funds for more mortgage products to meet greater demand.

Markman believes that while crypto risk could be bad for the housing sector, it could have some good for others. 

View Source

Tags: bitcoinCryptoReport
Share76Tweet47

Related Posts

Bitcoin on Verge of Breakout Towards $30K, But These Metrics Suggest Market Might Be Getting Too Hot

Bitcoin on Verge of Breakout Towards $30K, But These Metrics Suggest Market Might Be Getting Too Hot

by ccLink
March 21, 2023
0

Bitcoin on fire. Source: AdobeAccording to technical analysts looking at the Bitcoin market on a short-term time horizon, the world’s...

Crystal Blockchain Study Reveals $16.7 Billion in Crypto Assets Stolen Since 2011

Crystal Blockchain Study Reveals $16.7 Billion in Crypto Assets Stolen Since 2011

by ccLink
March 21, 2023
0

Crystal Blockchain, a company that provides blockchain data and analytics, published a study covering security breaches, fraud, and scams related...

Coinbase: Plans New Offshore Trading Platform to Combat Regulators

Coinbase: Plans New Offshore Trading Platform to Combat Regulators

by ccLink
March 21, 2023
0

Coinbase plans to set up an offshore exchange amid increasing regulatory oversight in the U.S.Bloomberg said on Friday that the...

Top 10 Best Penny Cryptos To Invest In Now

Top 10 Best Penny Cryptos To Invest In Now

by ccLink
March 21, 2023
0

Finding the overall best penny cryptocurrency to buy is always a tricky task, with many new projects entering the crypto...

Venezuela Rejigs Crypto Team After Arrest of Joselit Ramírez

Venezuela Rejigs Crypto Team After Arrest of Joselit Ramírez

by ccLink
March 20, 2023
0

Reading Time: 2 minutes Venezuela’s government has reorganized its crypto team following the alleged arrest of its head Joselit Ramírez...

Load More

Join our mailing list

Tags

ADA altcoin altcoin daily altcoins Binance bitcoin bitcoin analysis bitcoin crash bitcoin live bitcoin news bitcoin news today bitcoin prediction bitcoin price bitcoin price prediction bitcoin today Blockchain btc btc news btc price buy bitcoin Cardano Crypto crypto crash Cryptocurrency cryptocurrency news crypto market Crypto Monnaie cryptomonnaie Crypto News crypto news today DEFI Dogecoin ETH Ethereum Finance investing metaverse Money news nft Ripple Shiba inu Solana trading xrp

© 2022 CC.LINK

No Result
View All Result
  • Home
  • News
  • NFT
  • Videos/Tips
  • Mining
    • How to Mine Bitcoin
    • Top Mining Software
    • Mining Articles
  • Tools
    • Live Crypto
    • Free Wallet
  • Live
  • Marketplace
  • Contact us

© 2022 cc.Link.