Owning your own home was once considered the pinnacle of the American Dream. Even though housing costs were high, if you had a steady job and a fixed-rate bank loan, you could plan for the future and anticipate having a place to live in retirement, even if you had to make other financial sacrifices.
That was before the American job market collapsed, banks started marketing “refinancing” to let people live off the “excess equity” in their homes, or banks started marketing subprime mortgages to allow people to buy more house than they should have been able to afford – sustainable as long as interest rates didn’t rise!
Then the subprime market crashed, undermining the entire economy. Since that time, the world has not only yet to recover, but it also increasingly appears that another collapse is imminent. It is understandable why 64% of Americans reportedly do not believe that buying a home is a wise financial decision anymore. The housing market has begun to recover, but at least some of that growth is the result of wealthy people purchasing homes with the intention of renting them out; the Rich Dad, Poor Dad strategy of purchasing homes with the intention of renting them out is now just another way for those who are already wealthy to continue to amassing wealth.
At least one person has no need to worry about his house this Fourth of July weekend thanks to a foresightful and early Bitcoin investment. The new homeowner reports on Reddit:
2 years ago for the price of 1 monthly payment of my 30-year long mortgage I gambled on bitcoin and acquired 300 units from a friend. My mortgage was paid off yesterday, and I’ve taken the whole family out to celebrate the Fourth of July. Just wanted to say thanks to the Bitcoin community. On this Fourth of July, feeling debt-free is amazing.
PS: I still have a lot more coins that I managed to acquire over the past few years.
Greetings, Bitcoiners! Happy Fourth of July!..
Edit: I’m going to reinvest the money in more bitcoin purchases rather than sending the bank a monthly payment for the foreseeable future. As opposed to paying the Bank, it feels much better.
Paying only six dollars for each bitcoin, this person gambled on Bitcoin when it was even less well-known and developed than it is now, and is now getting paid for it.
Is this an option for the numerous people who are presently dealing with housing and other financial issues? Most likely not, but for some it may be. Despite a string of high-profile scandals, Bitcoin is still gaining popularity as evidenced by the growing number of wallets available, the number of establishments posting “Bitcoin Accepted Here” signs, the amount of money venture capitalists continue to invest in Bitcoin startups, the seriousness with which banks are looking into Bitcoin as a threat and potential tool, and even the softening of positions taken by China and Russia.
People who invest now are very likely to see significant returns due to the positive trend for Bitcoin. Because most people won’t take the risk, I can only assume that most people won’t benefit from this. Nothing in this world is guaranteed, so it’s important to remember that you should never invest more money in Bitcoin than you can afford to lose. Having said that, some bitcoiners, like the Redditor in the aforementioned post, believe that Bitcoin may be able to save the American Dream.