Once upon a time in America owning one’s own home was the holy grail of the American dream. Sure, homes were expensive, but with a stable job and a fixed-rate bank loan, you could plan your future and expect what would be where to retire, even if you had to cut financially in other ways.
This was before the downturn in the U.S. job market made it difficult to find and retain paid work, either because banks began selling “refinancing” so people could live off “excess capital” in their homes, or because banks began selling mortgages at a substandard rate to allow people to buy more homes than they could afford – steadily until interest rates rise!
And then the secondary economy market collapsed and blew up the whole economy – an event from which the world has not only not yet recovered, but also another collapse, which increasingly looks like on the way. Not surprisingly, according to some data, 64% of Americans no longer believe that owning their own home is a good investment. The housing market has undergone some recovery, but at least part of that movement comes from wealthy people buying the property they want to rent out – the strategy of rich dads and poor dads buying real estate for rent is no longer a way to advance up but just another way for those already rich to keep raising big money.
This weekend of the fourth of July at least one person no longer needs to worry about their home because of the early and wise investment in bitcoin. The new homeowner reports on Reddit:
2 years ago for the price of 1 monthly payment of my 30-year mortgage I risked getting bitcoin and bought from a friend 300 bitcoins. Yesterday I repaid the mortgage and brought the whole family to the celebration of the 4th. Just wanted to thank the Bitcoin community. It’s amazing to feel out of debt on this Independence Day.
PS: I still own a lot more coins that I’ve managed to pick up over the last couple of years.
Happy Independence Day, colleagues on bitcoin …
Edit: Instead of paying the bank monthly for the next few decades, I will again invest it in buying more bitcoins. It feels much better than paying the bank.
This man took a risk with bitcoins when he was even more unknown and undeveloped than he is now, paying only six dollars for bitcoin and now reaping the rewards.
Is it possible for many people who are now struggling with housing and other financial problems? Probably not. Although for some it may be. Despite a number of high-profile scandals, bitcoin is still growing in acceptance, judging by the number of wallets, more and more companies are putting up posters “Bitcoins are accepted here”, venture investments continue to invest more and more money in bitcoin startups, banks are starting more seriously investigate bitcoin both as a threat and as a possible tool, and even China and Russia are backing away from tough positions.
The trend towards bitcoins is positive, so people who are now investing are more likely to see higher returns. The only reason I say that most people don’t benefit from this is that most people don’t take risks. It’s important to note that there’s nothing definite here – investing in bitcoin more than you’re willing to lose will never be a smart idea. With that said, for some bitcoiners, such as the editor above, bitcoin may just save the American dream.