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Second largest US mortgage lender will accept crypto payments this year

fxstreet.com

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Re: Second largest US mortgage lender will accept crypto payments this year

#61

Post by MichaelBurge »

eloff wrote: post #59
peteretep wrote: post #53

It’s all bullshit marketing until someone is accepting payments for goods priced in crypto.

Cryptos are extremely volatile. That's not possible until that changes.

Volatility literally doesn't matter at all.

You can reduce it to 0 by shorting Bitcoin futures contracts. You can make it even more volatile if you want. You can change the multiplier on base price change i.e. volatility to be any number between -300% and 300% of its base rate(the caps depend on margin requirement), with appropriate setup.

That's for Bitcoin, but you can do other cryptocurrencies indirectly.

And these are government-regulated contracts, marked-to-market daily.

Re: Second largest US mortgage lender will accept crypto payments this year

#62

Post by SketchySeaBeast »

peteretep wrote: post #53

It’s all bullshit marketing until someone is accepting payments for goods priced in crypto.

Bitcoin gained 7% so far today from it's lowest to its highest. If I have a 5% margin on whatever I'm selling how could I ever feel good about trading for it, knowing that 7% was equally likely to be a drop and not wanting to treat it like an investment, where I have to wait for it to gain value again before I can sell?

Re: Second largest US mortgage lender will accept crypto payments this year

#64

Post by munk-a »

Considering how much money laundering real estate gets used for right now this is the last place I'd like to see crypto get involved. We already have a legion of issues with even legitimate money being stashed in real estate here (in Canada) and down there (the US) to get it out of reach of the Chinese government. I don't think we need to do anything to ease this process at all.

Re: Second largest US mortgage lender will accept crypto payments this year

#66

Post by cwkoss »

Are there any tax benefits from paying with crypto vs the borrower selling crypto for cash and the lender using that cash to buy crypto?

Basis gets set at time of payment, so borrower would still have to pay capital gains on the appreciated value, right?

Re: Second largest US mortgage lender will accept crypto payments this year

#67

Post by weird-eye-issue »

purple_ferret wrote: post #15
porphyra wrote: post #13

United Wholesale Mortgage was the subject of some reddit /r/wallstreetbets pumping earlier this year which then later fizzled out. I guess they are trying to piggyback off crypto hype to keep up their meme stonk status.

Looks like a SPAC stock too. Never the most reputable...

SPACs have been around for a while and plenty of reputable companies have gone that route

Re: Second largest US mortgage lender will accept crypto payments this year

#68

Post by quantumBerry »

vvarren wrote: post #40
quantumBerry wrote: post #30

Earlier quoted context omitted.

There is a way to price it, there are perpetual futures market for popular coins. You would pay the premium for those futures but by shorting or buying futures you can lock in value within a few percent. For example, if i expect 1 bitcoin 10 years from now, I sell a future contract promising to sell 1 bitcoin at $45,000. If the price falls 5,000 over 10 years, the value of my contract is now worth $5,000 plus the 40,…

That is definitely the solution to rate variability, but it doesn’t make sense economically. If you are borrowing money why would you also want to buy futures contracts, it would eat into your mortgage spending power when you can just trade in the Bitcoin, get a normal mortgage and probably far better rate, then buy at full buying power.

Thus you outline who benefits most from a mortgage in crypto -- someone who expects regular payment in fixed crypto in the future. For that person, their full buying power would be a crypto mortgage as they wouldn't lose buying power by hedging with futures against USD.

I have no idea who that person would be.

Re: Second largest US mortgage lender will accept crypto payments this year

#69

Post by JamisonM »

MichaelBurge wrote: post #61
eloff wrote: post #59

Earlier quoted context omitted.

Cryptos are extremely volatile. That's not possible until that changes.

Volatility literally doesn't matter at all. You can reduce it to 0 by shorting Bitcoin futures contracts. You can make it even more volatile if you want. You can change the multiplier on base price change i.e. volatility to be any number between -300% and 300% of its base rate(the caps depend on margin requirement), with appropriate setup. That's for Bitcoin, but you can do other cryptocurrencies indirectly. And thes…

If you have to do all this fancy footwork to make volatility not matter doesn't that prove that volatility does matter.

If you price asset X in crypto in the market and then buy options on USD to ensure that your sale price will be redeemable for a certain amount in USD in the future if it sells then aren't you really just pricing in USD? And then suffering a loss on your USD options if the asset doesn't end up selling?

Re: Second largest US mortgage lender will accept crypto payments this year

#70

Post by halfmatthalfcat »

weird-eye-issue wrote: post #67
purple_ferret wrote: post #15

Earlier quoted context omitted.

Looks like a SPAC stock too. Never the most reputable...

SPACs have been around for a while and plenty of reputable companies have gone that route

Why so defensive? People have a right to be skeptical about SPACs. They've only been "mainstream" for the past couple years and are quickly losing steam as a vehicle for public exposure[1].

[1] https://www.bloomberg.com/opinion/articles/2021-03-08/spac-p...

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