{"id":1872,"date":"2026-03-27T13:34:29","date_gmt":"2026-03-27T13:34:29","guid":{"rendered":"https:\/\/blog.coinsignals.net\/?p=1872"},"modified":"2026-03-27T13:34:29","modified_gmt":"2026-03-27T13:34:29","slug":"peter-schiff-cautions-that-bitcoin-collateral-mortgages-may-increase-housing-market-risk","status":"publish","type":"post","link":"https:\/\/blog.coinsignals.net\/index.php\/2026\/03\/27\/peter-schiff-cautions-that-bitcoin-collateral-mortgages-may-increase-housing-market-risk\/","title":{"rendered":"Peter Schiff Cautions That Bitcoin Collateral Mortgages May Increase Housing Market Risk"},"content":{"rendered":"\n
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Peter Schiff has raised concerns about a new mortgage model that allows borrowers to use cryptocurrency as collateral, warning that it could expose lenders to greater default risk.<\/p>\n\n\n\n

His remarks followed the launch of a new offering by Better and Coinbase, which enables borrowers to use Bitcoin instead of selling it to fund a home deposit.<\/p>\n\n\n\n

Bitcoin Backed Mortgages Stir Discussion<\/strong><\/p>\n\n\n\n

On March 26, Better and Coinbase introduced a partnership to offer mortgages backed by digital assets and aligned with Fannie Mae standards. According to their announcement, borrowers can use Bitcoin or USD Coin as collateral for a down payment without selling their holdings or triggering taxable events.<\/p>\n\n\n\n

Better described itself as an AI driven mortgage and home equity platform and said the product is aimed at millions of Americans who own crypto but struggle to accumulate cash for deposits. The company also noted that borrowers would not face margin calls if Bitcoin\u2019s price declines, and collateral would only be liquidated if payments are overdue by more than 60 days.<\/p>\n\n\n\n

Schiff criticized the structure, arguing that it shifts significant risk onto lenders. He stated that allowing Bitcoin to serve as a down payment increases exposure, as a sharp drop in its value could effectively erase the borrower\u2019s equity.<\/p>\n\n\n\n

He also pointed out that lenders cannot liquidate the collateral unless a borrower defaults, later describing the approach as a strategy that discourages people from selling Bitcoin to purchase homes.<\/p>\n\n\n\n

Market Volatility and Broader Implications<\/strong><\/p>\n\n\n\n

The launch comes at a time when Bitcoin is experiencing renewed price fluctuations. The asset recently dropped below 70,000 dollars and moved closer to 69,000 amid broader market weakness, which also affected Ethereum, pushing it under 2,100 dollars.<\/p>\n\n\n\n

At the time of writing, Bitcoin was trading below 69,000 dollars, down about 2 percent over the past day and nearly 3 percent over the last week. Over a 30 day period, however, it remains up around 6 percent, though still significantly below its peak from October 2025.<\/p>\n\n\n\n

Some analysts view the recent downturn differently. Micha\u00ebl van de Poppe noted that short term holders appear to be capitulating, a phase often associated with longer term accumulation as weaker participants exit the market.<\/p>\n\n\n\n

This new mortgage model sits at the crossroads of these developments. Companies like Coinbase argue that it allows crypto holders, especially younger investors, to access housing without selling their assets. Meanwhile, critics like Schiff warn that linking home financing to a highly volatile asset introduces risks that traditional mortgage systems were not designed to handle.#crypto#cryptonews https:\/\/coinsignals.net<\/a> https:\/\/t.me\/coinsignalpublic<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Peter Schiff has raised concerns about a new mortgage model that allows borrowers to use cryptocurrency as collateral, warning that it could expose lenders to greater...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1872","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1872","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/comments?post=1872"}],"version-history":[{"count":1,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1872\/revisions"}],"predecessor-version":[{"id":1874,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1872\/revisions\/1874"}],"wp:attachment":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/media?parent=1872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/categories?post=1872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/tags?post=1872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}