The story of a 28-year-old engineer who used his Bitcoin to take out a loan to pay for his mother’s house.
Mothers and their sons have a particular relationship. A Bitcoin (BTC) loan assisted pseudonymous Alan, a 28-year-old engineer, in purchasing a home for his mother.
Alan said that in 2021, on his sister’s birthday, he took out a Bitcoin-backed loan to give his mother tax-free money. She subsequently used the money to purchase a home in North Yorkshire, England, while Alan held on to his Bitcoin.
Alan initially used Bitcoin in 2012, after finding that it was a useful currency for online purchases. To acquire Bitcoin, he utilized the peer-to-peer (P2P) service localbitcoins.com
The practice of purchasing Bitcoin from actual people was characterized by Alan as “bizarre.” He added that utilizing big exchanges like Coinbase, Kraken, or Binance now is incomparable to the experience he had ten years ago.
Alan’s enthusiasm in Bitcoin waxed and went throughout his undergraduate studies, until 2014, when his “less than 100 pounds,” or $130, in Bitcoin had grown to a “couple of grand.”
Long-term holdings of Bitcoin might make sense since Satoshi Nakomoto’s peer-to-peer money could be used as an investment vehicle or a store of wealth.
In 2016, the price of a single Bitcoin was roughly $753, or 600 pounds. Alan understood it was “worth buying,” but he was still a student with his head down studying for examinations.
Alan approached his father with the idea of “spending a couple of thousand dollars” in the orange coin. Alan persevered despite his father’s decision not to invest in 2016.
The 2017 Bitcoin bull run came to an end, with the price of a single Bitcoin approaching $20,000 for the first time. Alan’s Bitcoin was beginning to appreciate in monetary value at the time of his second halving, the process by which the Bitcoin miner reward is cut in half, generating a supply shock.
Alan’s mother’s house talks came up in conversation in the summer of 2021, with a price in the $40,000s. Alan understood how he could “help out,” and he also knew he could get a loan instead of selling.
To get money, he went with Celsius, a centralized finance company that deals with decentralized cryptocurrencies. Alan took up a 25% loan-to-value, 0% interest Bitcoin-backed loan with Celsius on his sister’s birthday in August 2021, despite his interest in other cryptocurrencies and expertise in decentralised finance (DeFi). To obtain the complete amount needed for the new house, he quickly sent the money to his mother.
He put up 2.08 BTC as security, resulting in a $25,000 loan with a 36-month duration. Alan’s mother was thrilled by his generosity, and when she learned the funds were from a Bitcoin loan, she exclaimed, “That’s cool!” according to Alan.
Alan qualifies his Bitcoin-backed loan experience by stating that he has taken out more Celsius loans to purchase other items, but warns, “Sometimes maybe good, sometimes maybe garbage.”
Finally, while “Bitcoin gets a terrible rap in the news,” Alain believes that “the more wonderful things people do with it, the better.” He’s also shown that being charitable doesn’t need selling Bitcoin.
Alan came to the conclusion that everyone should “purchase your mother a house,” or, as he joked, “buy my mother another house.”
