What Bitcoin Did
Bitcoin Is Rebuilding the Financial System | Andrew Hohns
- Bitcoin-backed lending enables superior collateral and financing terms by combining physical assets with Bitcoin holdings, eliminating mark-to-market risk through long-term underwriting tied to cash flow.
- Battery Finance closed a $12.5 million real estate loan with $1.5 million in Bitcoin as collateral; the borrower shares Bitcoin appreciation upside with the lender over time.
- Bitcoin possesses unique collateral characteristics—finitude, fungibility, divisibility, liquidity, security—that surpass gold, real estate, art, and other traditional collateral forms.
- Institutional credit investors face systemic inflation risk and must integrate Bitcoin into portfolios to defend pension funds, endowments, and sovereign wealth against currency debasement.
- BitBonds—Treasury bonds with 10% Bitcoin allocation, lower coupons, and upside sharing—could reduce federal debt service costs and enable grass-roots patriotic savings while acquiring strategic Bitcoin reserves.
- Bitcoin's finite supply creates potential for sustained volatility and cycles as capital markets evolve to price an uncapped asset against an infinitely expandable currency base.