So now I understand why you don't want to get a mortgage to buy a house!
When Bianca spoke those words to me this week I was so happy.
It's like everything came together Crypto, debt, house.
One of the biggest things in life that I fear is debt.
I don't mean the kind where you lend 10 bucks from a friend to buy a round of beers. But the one that enslaves you for a while.
The mortgage.
I used to be like everyone else. Thinking a mortgage to be an honest way to buy a house.
This all changed when I learned how the money for the mortgage is created.
It's so simple that when I try to explain it to people they usually don't believe me.
It works like this:
The moment you sign the mortgage the money for that loan is created out of thin air by the bank. It never existed before, they didn't have it, it's not money from other depositors. It's new money created by the bank.
The loan is based on your ability to create value over a certain amount of time (aka work) in the real world.
But in case you fail to pay (let's say you get sick) the bank can still sell the house that you bought with the money they never had in the first place.
But in case you don't get sick and be a good lender they still have the audacity to charge interest over the loan (money) they created out of thin air.
You what now? yes, I know. It just doesn't sit right with me.
It's an honest way for the debtor but not for the lender is it?
Cryptocurrencies can't be created like this. That's why I like them so much. It's freedom.
I talk about it more in my vlog.
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