Home sweet hodl: How a Bitcoiner used BTC to buy his mom a house

Mothers and their sons share a special bond. A Bitcoin (BTC), loan was able to help pseudonymous Alan, an engineer at 28, buy a house.

Cointelegraph’s Alan said that he took out a Bitcoin loan in 2021, serendipitously to give his mom the tax-free money. The funds were used to purchase a house in North Yorkshire (England) while Alan kept his Bitcoin.

Yorkshire, England, is known as “God’s own country”. Source: North Yorkshire City Council

Alan used Bitcoin for the first time in 2012. He learned that it was a good currency to purchase things online. To buy Bitcoin, he used localbitcoins.com (peer-to-peer) which is a regular contributor to Cointelegraph.

Alan described buying Bitcoins from real people as a “bizarre” experience. He said that it is not comparable to the experience of using popular exchanges like Coinbase, Kraken, or Binance today.

Alan’s interest in Bitcoin grew over the course of his university studies. By 2014, the “less than 100 pounds” or $130 that Alan had invested in Bitcoin had turned into a “couple grand.” Alan explains how Bitcoin has evolved from a currency to something else.

“Bitcoin was useful, from being able to buy things online to actually having value. This anonymous money or ‘anonymous enough money’ has actual value.

It might be a good idea to hold onto Bitcoin for the long-term, since the Satoshi Nakomoto created P2P money that could be used as an investment tool or as a store of value.

Now, it was 2016, and Bitcoin’s price was approximately $753, or 600 Pounds. Although Alan knew it was worth purchasing, he was still a student who was focused on his exams.

“I didn’t have any money, and any Bitcoins I had I used to buy things.”

Alan suggested to his father that it might be worth “investing two thousand dollars” in the orange coin. His father didn’t invest in 2016, but Alan persevered.

The 2017 Bitcoin bull market was a success. Bitcoin’s price reached nearly $20,000. His Bitcoin was growing in value at the time of Alan’s second halving. This is when the Bitcoin miner rewards are split.

Alan’s mom was in negotiations to buy her house in 2021. The price was in the $40,000s. Alan knew exactly how he could help and, even better, he knew that he could get a loan so he didn’t have to sell.

Celsius is a centralized platform that deals with decentralized cryptocurrency to source cash. Alan stated that despite his interest in other cryptocurrencies, and his knowledge of Decentralized Finance (DeFi), he chose Celsius because they offer a lower risk perception. They are backed by venture capital.

“You would expect them to be slightly more resilient that DeFi protocols. The 25% loan to value is a great limit because I would likely liquidate my assets without it.”

Alan borrowed a 25% loan to his sister, with 0% interest, from Celsius on August 2021. To reach the full amount required for the house, he quickly transferred the money to his mother.

Bitcoin price August 2021 Source: Cointelegraph

To generate $25,000, he pledged 2.08 BTC collateral. The loan term was 36 months. Alan’s mother was thrilled to hear that the money was a Bitcoin loan. Alan said that her daughter commented, “That’s cool!”

Cointelegraph reached Alex Mashinsky (CEO of Celsius) for comment. He said that it was an honor to serve a community that is interested in doing good for others and added:

We hear many great stories from clients who have built businesses, bought houses, taken care of others and even climbed mountains using Celsius loans.

Alan explains his Bitcoin-backed loan experience. He says he has taken out Celsius loans to purchase other items. But a warning: “Sometimes it is good, sometimes it’s terrible.”

Cointelegraph, Paris Blockhain Week: Alex Mashinsky, CEO of Celsius Source: YouTube

Similar: The 200K-year anniversary of the 1M Euro Bitcoin retirement plan: It’s not too late for you to invest

Alain said that although Bitcoin gets a bad reputation in the media, it can be used to make good money.

“Many people are extremely lucky to be able to make small amounts of money into huge piles of wealth. Give a little back to someone you care about. It doesn’t matter if it’s your family or general charity.

Alan concluded that everyone should “buy mum a home” or, even better, “buy mum another house.”

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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