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The actor turned cryptography contractor Brock Pierce used bitcoin as collateral to buy a $ 1.3 million mansion in Amsterdam. The real estate transaction is the very first mortgage with encryption.
Swiss start-up cryptocurrency Nexo facilitated the purchase. Nexo is a crypto wallet that allows you to borrow up to $ 2 million in 45 different currencies in 24 hours.
"He guaranteed the entire loan from the house with Bitcoin," said Nexo co-founder Antoni Trenchev. Fox Business. "This was our very first mortgage with encryption."
Brock Pierce holds 95% of his fortune in crypto
Brock Pierce is a former child actor who starred in the hit movie "The Mighty Ducks" (1992, opposite Emilio Estevez).
Since then, Pierce has become a crypto entrepreneur and venture capitalist who is now president of the Bitcoin Foundation. Surprisingly, Pierce holds more than 95% of his net worth in cryptocurrency.
The former children's actor Brock Pierce is president of the Bitcoin Foundation. (Photo PR)
"Tokenization will be a four billion dollar market"
In November 2018, Pierce used $ 3 million in bitcoins as collateral to buy his sumptuous Amsterdam mansion.
Antoni Trenchev, of Nexo, said Pierce initially wanted to hold all his cryptographic badets, but needed the money to buy the property. He therefore used his bitcoins holdings as collateral.
"So we take this bitcoin and other digital currencies as collateral by using a qualified third-party custodian to store it and give it to them in cash. But neither the customer nor we have access to the parts. "
"For a loan of $ 10,000, you will have to deposit $ 20,000 in bitcoins. We therefore lend you 50 cents on the dollar.
Pierce says that being able to borrow money directly against his cryptographic badets is a convenient method of financing. It also reflects my philosophy that real estate and symbolization will be a $ 4 billion market. "
"I was able to keep my crypto and settle the transaction in fiat."
The segmentation of real estate is an emerging trend. | Source of the picture: Pixabay
Mike Novogratz: Real estate tokenization will be great
As CCN reports, the bitcoin bull, Mike Novogratz, believes that the symbolization of badets such as real estate is an emerging trend.
Novogratz, founder of the crypto-investment bank Galaxy Digital Capital Management, said that several companies had begun to symbolize luxury condos in the tony real estate markets of New York and Aspen, Colorado.
"You will see more and more of this. It's not nearly as bady as Web 3.0, but it's part of this larger movement of tokenization, blockchain scanning. The blockchain makes a lot possible. "
As cryptography prices collapse, Mike Novogratz prepares the table on the tokenization of real estate https://t.co/838mGax8Qn
– CCN.com (@CCNMarkets) November 16, 2018
Real estate agent: "Tokenization opens the way"
Many condominiums receive their own tokens, which is a partial interest for the property. This allows homeowners to invest in luxury condos, even with a small investment – which was extremely difficult before.
New York City real estate agent Ryan Serhant says tokenization could revolutionize real estate financing.
"Thanks to the symbolism of block chains, we can remove the undisciplined pressure of traditional bank financing, which is much healthier for the project and for all stakeholders," said Serhant. "Tokenization paves the way for a new advance in real estate development."
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