• This US Lender Is Considering Accepting Cryptocurrency for Mortgage Payments

  • United Wholesale Mortgage (UWM), based in Michigan, has stated that it intends to accept cryptocurrency payments before the end of 2021. This would make it the first major mortgage lender in the United States to provide this service.

    In terms of mainstream use cases, the crypto industry has arguably struggled to find its footing. That is by no means representative of the large number of use cases that exist.

    Rather, the problem appears to be a lack of mainstream acceptance. But are we on the verge of a paradigm shift?

    Certainly, as more companies enter the crypto ecosystem and, as a result, make crypto services available to the general public, it is only a matter of time before mass adoption occurs.

    Mortgage Payments in Crypto

    Despite the current challenges, cryptocurrency payment is gaining popularity.

    A survey of over 8,000 US consumers, including current and former crypto holders as well as no-coiners, yielded some surprising results.

    As many as 93 percent of crypto users said they would consider purchasing cryptocurrency in the future. While 59 percent of no-coiners are interested in using it to make purchases.

    Purchases of general cryptocurrency are one thing. However, large-ticket items, such as mortgage payments, are a total game changer.

    The UWM management team confirmed the use of cryptocurrency for mortgage payments during a conference call with analysts to discuss the firm’s second-quarter results.

    Mat Ishbia, the company’s CEO, stated that they are racing to make this a reality before other lenders can steal a march.

    “We’re excited that hopefully (this year) we’ll be able to execute on that ahead of anyone else in the country.”

    In terms of which cryptocurrencies they will accept, Ishia stated that they will begin with Bitcoin but are also considering Ethereum and others. Ishia went on to say that there could be a plethora of other options available in the future.

    “We will walk before we run, but we are unquestionably a leader in technology and innovation, and we are always striving to be the best and the leader in everything we do.”

    Adoption Prospects Are Hurt Due to Scam Reputation

    There are numerous prominent figures who question the legitimacy of cryptocurrency. Bill Gates, Charlie Munger, Warren Buffett, Peter Schiff, Nouriel Roubini, and others are among those on this list.

    Nassim Nicholas Taleb, the mathematician and author of The Black Swan, is another. Taleb recently called Bitcoin a gimmick and too volatile to be a worthwhile hedge against inflation in an interview with CNBC. Without hesitating, Taleb continued, “Bitcoin has all the hallmarks of a Ponzi scheme and has no right to be involved with anything related to finance.”

    “It’s an elegantly designed cryptographic system. It’s well-made, but there’s no reason for it to be linked to anything economic.”

    No-coiners on the fence, or those swayed by mainstream and populist opinion, would internalize Taleb’s words as if they were true.

    Unfortunately, such one-dimensional thinking does a great disservice to the crypto sector, impeding adoption.

    Fortunately, companies like UWM are able to see through the noise. And as more people follow suit, the Talebs of the world will become increasingly irrelevant.

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