The problems with this:
- you will need to get more collateral if the price goes down, if you're short on cash or coins it might be impossible for you
- you risk being liquidated in a drop only to see that after one month the coin is up by 50%, you basically sold at the bottom
- there is a trap for some of those that allow you a 70% drop in collateral before liquidation. If liquidation does happen below the levels of your mortgage so it's not able to cover all up you're still going to have to pay the difference
- far higher interest rate compared to a good credit score with a bank
This is so true. Just take an example of current market. If someone would have mortgaged a loan before the drop and if they had to pay back in bitcoin for monthly interest then it would have been costly affair for sure. Man just check the current drop. They had to repay more satoshi’s since to pay x amount monthly they had to cover up that x plus the devalued costing. I’m not sure if I’m able to explain this correctly but in my own language I understood how difficult it would be to loan out property or take the loans other way around in bitcoin.