Recently, there has been a growing trend among Bitcoin holders to use their assets to obtain loans for real estate purchases, allowing them to avoid capital gains taxes.
Trend Among Crypto Whales
Crypto whales possessing significant amounts of Bitcoin have started to leverage their assets for real estate loans. This approach allows them to avoid selling their assets and, consequently, capital gains taxes. This trend is rapidly evolving, with more cryptocurrency billionaires adopting this method.
Advantages of Using Bitcoin as Collateral
One of the main advantages of this approach is that using Bitcoin as collateral does not incur capital gains taxes. This means that asset holders can access liquidity without selling their investments, retaining their potential for future growth.
Mutuum Finance Protocol and Its Features
Mutuum Finance (MUTM) is designed as a decentralized non-custodial protocol allowing users to act as lenders, borrowers, or liquidators. Its main benefits include dynamically set interest rates, an overcollateralization requirement, and a liquidation mechanism to protect lenders' assets. Thus, Mutuum Finance offers users flexible conditions for accessing liquidity while preserving the growth of their assets.
The increasing popularity of leveraging Bitcoin for real estate loans reflects a changing approach to financing and taxation. Protocols like Mutuum Finance can provide users with new opportunities for effective asset management.
