Artist-photographer-philosopher upgrade complete:
Extend your power: ERIC KIM NEWS >
Digital power?
OK after getting a phenomenal 11 hours of sleep, and bitcoin, bursting through the seams… also my glorious testosterone boosting beef liver, beef short rib diet, … the sun is shining gloriously, the future seems unlimited, some thoughts:
So the first thought is, what is it that everyone wants more of, yet can never get enough of?
Power.
Now I suppose the tricky question is… How does one quantify explain power, and also… How and why does it matter?
So the first thought is, we have to unlearn all this nonsensical ethics. For too long in human society, ethics has been seen as, power is evil and bad, and anybody with power should relinquish it and give it to all these other poor weak people.
Now I see power as a more metaphorical and also physiological thing. And also doesn’t really have to deal with money.
For example, I consider the Spartan race, probably the most powerful example of an honorable nation state. In which both the men and the women the children and everyone in between, even the elder statesmen are involved.
Now, what’s kind of interesting is, when you think about past empires, everyone is always trying to extend their reach in power in terms of expansion. Also if you think about conquerors like Napoleon etc.
Now I suppose the tricky thing is… A lot of people like to comment on Napoleon, and say something like, oh he should’ve just been happy being emperor of France and should have just retired. Instead of doing the foolish thing of invading Russia.
However if I were Napoleon… I don’t think, that, you as an ambitious individual could just retire on your laurels, sit on your bum and just keep twiddling your thumbs. Notions of gratitude I think are misguided. 
I suppose also my will to power first of all, was enabled by digital. Digital technologies, even my blog as a digital publishing platform, no way in hell would have been able to become number one on Google for Street photography, be the first and only, if not the last street photographer to actually make a living from street photography.
And I suppose in today’s brave New World of AI and photography, perhaps the thought of the artist photographer is, … to think and consider photography as a means to (more) power?
I think the big idea is, asking yourself what kind of power?
So the first obvious one is clout, prestige, variety, fame. For example it’s better to have like one Elon Musk following you rather than 1 billion “normies” following you.
Then I suppose also the more practical question is, more power for the sake of what?
So typically my thought is, power is the great stimulus to life.  for example, if you see your wealth growing on average 60% a year, every year, for the next 10 years… powered by Bitcoin ,,, you will be insanely happy, and optimistic.
Or even better yet… Strapping in for the MSTR roller coaster, which is essentially kind of like a Mach 10 stealth fighter pilot jet, getting your average 120% a year ARR, for the next 10 years… although sometimes suffering 40 to 80% drawdowns and dips,… my simple strategy is don’t take out a big leveraged position so you don’t get liquidated or wiped out.
And I also suppose the difficult thing is if you want more power, once again it’s not a linear line, it’s kind of like a big wiggly gamma line, gamma waves,,, life like roller coaster tycoon; insanely steep dips highs and high lows and lows, twist and turns, making you a bit dizzy and nauseous, wanting to throw up. 
So what’s kind of fascinating is, if you think about it… Who is it that everyone in society worships? Probably the entrepreneur or the artist, ideally the entrepreneur-artist.
For example, I think a lot of people forget that Elon Musk is actually insanely involved with the design of all the vehicle vehicles, especially with the cyber truck, even the early Tesla model S, to make it look less bubbly,.. and even Elon has the genius intelligence that in fact, people don’t buy things for it to be good for an environment, but, they buy it to be sexy.
If you think about it, also for a man, a woman etc.… What is the ultimate biological active power? Procreation. Like having children.
This is starting to sound bad, but maybe… It is true that the truly rich powerful people of society desire to have children, it may be individuals with no power or hope, don’t want to have children because they have no power?
I think in today’s world, true power is economic power, capital power etc. Or political power.
But what does power mean in terms of an economic sense?
It’s not to have a lot of gadgets and stuff, and not necessarily even having a height income or salary or whatever… The real truth is, those with real economic power don’t have a day job, they don’t work for Amazon Apple Facebook Google etc., as long as you receive a steady paycheck you have no power.
The true insight is those with real power are the capitalists with real capital, whether it be shares in a company, bitcoin, real estate, commercial real estate etc.
So once again you could be a loser in a Lamborghini, and no, a Lamborghini is not capital. If you’re renting it leasing it or financing it you’re still a slave.
A big thought I’m having is, to these pseudo woke goody two-shoes who think that capitalism is bad and evil blah blah blah, they just haven’t discovered bitcoin which is the most ethical capital known to the human race. Before that was gold. Because any peasant or individual could always buy slivers of a gold coin, and anybody with a Coinbase or a cash app account, could buy $20 of bitcoin. 
If you understand bitcoin as digital capital it changes everything. Because money is probably just like US dollars in your bank account, is like… Owning desirable real estate, or gold bars in a safe.  or if you’re John Wick, having your gold coins buried under the cement of your basement, etc.
I think a very underappreciated thing about photography is the ability to create art in instantaneously, magically, digitally.
The more I think about this deeply, digital is like highly underappreciated. Like it’s kind of strange how everyone’s so into film photography and whatever… Given that they probably have some sort of digital banking account, they all have digital iPhones, and send digital messages and emails, can you imagine trying to be a productive office worker in which you’re just mailing stamps all day?
I think a simple shortcut people have is, if I own this more expensive camera I shall gain more power. The formula:
The more expensive my camera is, the more powerful I shall become.
I actually have a very very funny quote, which is obviously comedic:
if your photos aren’t good enough your camera isn’t expensive enough.
Even applied to real life, especially for people in LA: 
if you’re not happy enough your car isn’t expensive enough.
A hilarious irony is irregardless of how rich you are, everyone wants a good deal. You don’t want to pay $1.2 million for that painting, you want to quote only” pay $800,000. You don’t want to buy that mansion house for 50 million you’ll want to only pay $22M. You don’t want to buy that watch for 1 million you want to pay “only” $250,000 for it.
I think this is the hilarious thing about human nature is, how everything is injured and framed to everything. It is not ultimate values which matter but comparisons.
For example if you live in Vietnam, and you just have like a hybrid Toyota Prius or Corolla, you’re still like 100 times richer than all these people who have to ride motorbikes for a living.
Or if in Cambodia earning more than $200 a month, once again you’re middle class or upper middle class.
So there are some game changers, AI and bitcoin.
First, AI can make you like 1 trillion times smarter, a better negotiator, and more productive. This is insanely critical if you work for a living, or, especially if you’re a self-employed entrepreneur. Honestly at this point, not using AI is almost like somebody bragging that they don’t have Wi-Fi or a 5G connection on their iPhone. Or somebody who brags that they take a donkey cart to work instead of just driving their car.
There’s an interesting Cambodian proverb,
better to ride a buffalo across the mud, rather than swim through AI then becomes our digital buffalo, which helps us get more done.
ERIC
Create your future:
Forward the fire to a fellow philosopher artist friend!
Be new again:
Digital power?
OK after getting a phenomenal 11 hours of sleep, and bitcoin, bursting through the seams… also my glorious testosterone boosting beef liver, beef short rib diet, … the sun is shining gloriously, the future seems unlimited, some thoughts:
So the first thought is, what is it that everyone wants more of, yet can never get enough of?
Power.
Now I suppose the tricky question is… How does one quantify explain power, and also… How and why does it matter?
So the first thought is, we have to unlearn all this nonsensical ethics. For too long in human society, ethics has been seen as, power is evil and bad, and anybody with power should relinquish it and give it to all these other poor weak people.
Now I see power as a more metaphorical and also physiological thing. And also doesn’t really have to deal with money.
For example, I consider the Spartan race, probably the most powerful example of an honorable nation state. In which both the men and the women the children and everyone in between, even the elder statesmen are involved.
Now, what’s kind of interesting is, when you think about past empires, everyone is always trying to extend their reach in power in terms of expansion. Also if you think about conquerors like Napoleon etc.
Now I suppose the tricky thing is… A lot of people like to comment on Napoleon, and say something like, oh he should’ve just been happy being emperor of France and should have just retired. Instead of doing the foolish thing of invading Russia.
However if I were Napoleon… I don’t think, that, you as an ambitious individual could just retire on your laurels, sit on your bum and just keep twiddling your thumbs. Notions of gratitude I think are misguided. 
I suppose also my will to power first of all, was enabled by digital. Digital technologies, even my blog as a digital publishing platform, no way in hell would have been able to become number one on Google for Street photography, be the first and only, if not the last street photographer to actually make a living from street photography.
And I suppose in today’s brave New World of AI and photography, perhaps the thought of the artist photographer is, … to think and consider photography as a means to (more) power?
I think the big idea is, asking yourself what kind of power?
So the first obvious one is clout, prestige, variety, fame. For example it’s better to have like one Elon Musk following you rather than 1 billion “normies” following you.
Then I suppose also the more practical question is, more power for the sake of what?
So typically my thought is, power is the great stimulus to life.  for example, if you see your wealth growing on average 60% a year, every year, for the next 10 years… powered by Bitcoin ,,, you will be insanely happy, and optimistic.
Or even better yet… Strapping in for the MSTR roller coaster, which is essentially kind of like a Mach 10 stealth fighter pilot jet, getting your average 120% a year ARR, for the next 10 years… although sometimes suffering 40 to 80% drawdowns and dips,… my simple strategy is don’t take out a big leveraged position so you don’t get liquidated or wiped out.
And I also suppose the difficult thing is if you want more power, once again it’s not a linear line, it’s kind of like a big wiggly gamma line, gamma waves,,, life like roller coaster tycoon; insanely steep dips highs and high lows and lows, twist and turns, making you a bit dizzy and nauseous, wanting to throw up. 
So what’s kind of fascinating is, if you think about it… Who is it that everyone in society worships? Probably the entrepreneur or the artist, ideally the entrepreneur-artist.
For example, I think a lot of people forget that Elon Musk is actually insanely involved with the design of all the vehicle vehicles, especially with the cyber truck, even the early Tesla model S, to make it look less bubbly,.. and even Elon has the genius intelligence that in fact, people don’t buy things for it to be good for an environment, but, they buy it to be sexy.
If you think about it, also for a man, a woman etc.… What is the ultimate biological active power? Procreation. Like having children.
This is starting to sound bad, but maybe… It is true that the truly rich powerful people of society desire to have children, it may be individuals with no power or hope, don’t want to have children because they have no power?
I think in today’s world, true power is economic power, capital power etc. Or political power.
But what does power mean in terms of an economic sense?
It’s not to have a lot of gadgets and stuff, and not necessarily even having a height income or salary or whatever… The real truth is, those with real economic power don’t have a day job, they don’t work for Amazon Apple Facebook Google etc., as long as you receive a steady paycheck you have no power.
The true insight is those with real power are the capitalists with real capital, whether it be shares in a company, bitcoin, real estate, commercial real estate etc.
So once again you could be a loser in a Lamborghini, and no, a Lamborghini is not capital. If you’re renting it leasing it or financing it you’re still a slave.
A big thought I’m having is, to these pseudo woke goody two-shoes who think that capitalism is bad and evil blah blah blah, they just haven’t discovered bitcoin which is the most ethical capital known to the human race. Before that was gold. Because any peasant or individual could always buy slivers of a gold coin, and anybody with a Coinbase or a cash app account, could buy $20 of bitcoin. 
If you understand bitcoin as digital capital it changes everything. Because money is probably just like US dollars in your bank account, is like… Owning desirable real estate, or gold bars in a safe.  or if you’re John Wick, having your gold coins buried under the cement of your basement, etc.
I think a very underappreciated thing about photography is the ability to create art in instantaneously, magically, digitally.
The more I think about this deeply, digital is like highly underappreciated. Like it’s kind of strange how everyone’s so into film photography and whatever… Given that they probably have some sort of digital banking account, they all have digital iPhones, and send digital messages and emails, can you imagine trying to be a productive office worker in which you’re just mailing stamps all day?
I think a simple shortcut people have is, if I own this more expensive camera I shall gain more power. The formula:
The more expensive my camera is, the more powerful I shall become.
I actually have a very very funny quote, which is obviously comedic:
if your photos aren’t good enough your camera isn’t expensive enough.
Even applied to real life, especially for people in LA: 
if you’re not happy enough your car isn’t expensive enough.
A hilarious irony is irregardless of how rich you are, everyone wants a good deal. You don’t want to pay $1.2 million for that painting, you want to quote only” pay $800,000. You don’t want to buy that mansion house for 50 million you’ll want to only pay $22M. You don’t want to buy that watch for 1 million you want to pay “only” $250,000 for it.
I think this is the hilarious thing about human nature is, how everything is injured and framed to everything. It is not ultimate values which matter but comparisons.
For example if you live in Vietnam, and you just have like a hybrid Toyota Prius or Corolla, you’re still like 100 times richer than all these people who have to ride motorbikes for a living.
Or if in Cambodia earning more than $200 a month, once again you’re middle class or upper middle class.
So there are some game changers, AI and bitcoin.
First, AI can make you like 1 trillion times smarter, a better negotiator, and more productive. This is insanely critical if you work for a living, or, especially if you’re a self-employed entrepreneur. Honestly at this point, not using AI is almost like somebody bragging that they don’t have Wi-Fi or a 5G connection on their iPhone. Or somebody who brags that they take a donkey cart to work instead of just driving their car.
There’s an interesting Cambodian proverb,
better to ride a buffalo across the mud, rather than swim through AI then becomes our digital buffalo, which helps us get more done.
Digital power?
OK after getting a phenomenal 11 hours of sleep, and bitcoin, bursting through the seams… also my glorious testosterone boosting beef liver, beef short rib diet, … the sun is shining gloriously, the future seems unlimited, some thoughts:
So the first thought is, what is it that everyone wants more of, yet can never get enough of?
Power.
Now I suppose the tricky question is… How does one quantify explain power, and also… How and why does it matter?
So the first thought is, we have to unlearn all this nonsensical ethics. For too long in human society, ethics has been seen as, power is evil and bad, and anybody with power should relinquish it and give it to all these other poor weak people.
Now I see power as a more metaphorical and also physiological thing. And also doesn’t really have to deal with money.
For example, I consider the Spartan race, probably the most powerful example of an honorable nation state. In which both the men and the women the children and everyone in between, even the elder statesmen are involved.
Now, what’s kind of interesting is, when you think about past empires, everyone is always trying to extend their reach in power in terms of expansion. Also if you think about conquerors like Napoleon etc.
Now I suppose the tricky thing is… A lot of people like to comment on Napoleon, and say something like, oh he should’ve just been happy being emperor of France and should have just retired. Instead of doing the foolish thing of invading Russia.
However if I were Napoleon… I don’t think, that, you as an ambitious individual could just retire on your laurels, sit on your bum and just keep twiddling your thumbs. Notions of gratitude I think are misguided. 
I suppose also my will to power first of all, was enabled by digital. Digital technologies, even my blog as a digital publishing platform, no way in hell would have been able to become number one on Google for Street photography, be the first and only, if not the last street photographer to actually make a living from street photography.
And I suppose in today’s brave New World of AI and photography, perhaps the thought of the artist photographer is, … to think and consider photography as a means to (more) power?
I think the big idea is, asking yourself what kind of power?
So the first obvious one is clout, prestige, variety, fame. For example it’s better to have like one Elon Musk following you rather than 1 billion “normies” following you.
Then I suppose also the more practical question is, more power for the sake of what?
So typically my thought is, power is the great stimulus to life.  for example, if you see your wealth growing on average 60% a year, every year, for the next 10 years… powered by Bitcoin ,,, you will be insanely happy, and optimistic.
Or even better yet… Strapping in for the MSTR roller coaster, which is essentially kind of like a Mach 10 stealth fighter pilot jet, getting your average 120% a year ARR, for the next 10 years… although sometimes suffering 40 to 80% drawdowns and dips,… my simple strategy is don’t take out a big leveraged position so you don’t get liquidated or wiped out.
And I also suppose the difficult thing is if you want more power, once again it’s not a linear line, it’s kind of like a big wiggly gamma line, gamma waves,,, life like roller coaster tycoon; insanely steep dips highs and high lows and lows, twist and turns, making you a bit dizzy and nauseous, wanting to throw up. 
Bitcoin-backed home financing currently appears in three distinct product families that often get conflated in marketing: (a) crypto-collateralized mortgage lending (true property lien plus Bitcoin/Ether collateral, with liquidation/foreclosure mechanics), (b) mortgage underwriting that recognizes crypto holdings without pledging them (non-QM/non-agency programs that treat verified exchange-held crypto as reserves and sometimes “income” proxies), and (c) BTC-collateralized cash loans that borrowers may use for down payments or purchases but are not mortgages (no property lien) and are governed by margin calls / liquidation thresholds. citeturn14search31turn19search37turn14search30turn14search2
From a market-structure perspective, Bitcoin-backed mortgages are a niche overlay on top of a much larger crypto-collateralized credit ecosystem. Galaxy Research estimated total crypto‑collateralized lending (CeFi + DeFi lending apps + crypto-collateralized CDP stablecoins) reached $73.59B at the end of Q3 2025, with DeFi lending apps at $40.99B and CeFi open borrows at $24.37B. citeturn23view0 By contrast, entity[“company”,”Milo”,”crypto mortgage lender”] announced it surpassed $100M in “crypto mortgages” originated, indicating mortgage-specific volumes are orders of magnitude smaller than broader crypto-collateralized lending. citeturn22search7turn14search31
Regulation is the main gating factor for scale. In the entity[“country”,”United States”,”federal republic”], mortgage origination/servicing is heavily covered by federal consumer-finance disclosure and conduct regimes (e.g., integrated disclosures under TILA/RESPA) and by licensing/registration rules for mortgage originators. citeturn3search5turn3search17turn3search2 Separately, crypto custody / transfer activity triggers AML obligations and, depending on structure and jurisdiction, potentially financial services licensing (state virtual currency regimes; finance-lender licensing; or equivalent). citeturn3search7turn4search0turn4search1 Comparable “two-layer” compliance (mortgage rules + crypto rules) is visible across the entity[“country”,”United Kingdom”,”sovereign state”], entity[“organization”,”European Union”,”supranational union”], entity[“country”,”Canada”,”federal state”], entity[“country”,”Australia”,”sovereign state”], and entity[“country”,”Singapore”,”city-state”], though the perimeter for “crypto lending” differs materially. citeturn5search8turn5search1turn5search2turn6search0turn6search2turn7search6
A rigorous borrower risk view centers on volatility-driven forced selling (margin calls/liquidations), custody/counterparty risk, and legal/regulatory risk (licensing, consumer protection, and changing supervisory expectations). Product design choices—starting LTV, liquidation thresholds, and rehypothecation policy—directly determine how likely a borrower is to be liquidated during drawdowns. citeturn14search30turn14search2turn14search1turn21search8
“Bitcoin-backed mortgage” is used in the market to describe at least two different realities:
1) Collateralized mortgage: the lender places a lien on the property and also holds crypto collateral; default can be satisfied via collateral liquidation and/or foreclosure. citeturn14search31
2) Underwriting recognition: crypto is verified and haircut-adjusted to count as reserves and possibly “income” in non-QM programs; no custody transfer to the lender, but custody location constraints (regulated exchanges / approved custodial wallets) are common. citeturn19search37turn19search2turn19search1
3) BTC-backed loan (non-mortgage): a cash loan secured by BTC; borrower retains BTC price exposure but faces margin calls/liquidation. citeturn14search30turn21search22turn20search17
| Provider / program | What it is (mortgage vs underwriting) | How BTC is used | Custody model | Key terms disclosed publicly | Noted constraints / gaps |
|---|---|---|---|---|---|
| entity[“company”,”Rate”,”mortgage lender | ratefi”] (RateFi) | Underwriting program (non-QM) | Crypto may count as qualifying assets/reserves and “in some cases” income; down payment/closing still paid in USD | No lender custody; assets must be in approved custodial wallets; non-custodial wallets and DEX excluded citeturn19search37turn18view0 | Product page describes eligible assets (BTC, ETH, XRP, USD-backed stablecoins) and non-custody approach citeturn19search37turn19search35 |
| entity[“company”,”Newrez”,”mortgage lender and servicer”] | Underwriting program (non-agency “Smart Series”) | “Recognize” certain crypto for asset verification and income estimation without liquidation | No explicit custody transfer described; verification and eligibility rules referenced but not fully enumerated in the press materials citeturn19search1turn19search4turn19search9 | Launch intent: crypto used without liquidation; positioned as non-QM/non-agency rollout citeturn19search1turn19search15 | Which assets and the exact haircut methodology are not fully detailed in press release (unspecified) citeturn19search1turn19search4 |
| entity[“company”,”Newfi Lending”,”non-qm mortgage lender”] (DSCR guideline expansion) | DSCR underwriting guideline change (investor-oriented) | Up to 25% of current BTC/ETH value in a Coinbase account may count toward DSCR reserves; also allows crypto funds/ETFs under conditions | Assets must be held at specified custodial venues (e.g., Coinbase account for BTC/ETH); traditional providers for crypto funds/ETFs citeturn19search2turn19search5 | Quantitative caps & documentation recency: 25% for BTC/ETH at Coinbase; 50% for crypto mutual funds/ETFs held at traditional providers; statements within 60 days; crypto capped at 50% of total reserves citeturn19search2turn19search5 | Not a pledge-based collateral product; reserve-only framework; mortgage rates/fees follow DSCR product terms (unspecified) citeturn19search5 |
| entity[“company”,”Milo”,”crypto mortgage lender”] | Crypto-collateralized mortgage (property lien + crypto collateral) | Pledge BTC/ETH as collateral; lender pays seller and places a lien; default may allow lender to access crypto or foreclose | Custody described as either traditional custody with partners or “self-custody option” (details not fully machine-readable due to site restrictions) citeturn14search27turn14search31 | Example terms reported: 1:1 crypto-to-home-price collateral requirement; interest-only payments for first 10 years then amortization; 100% financing framing citeturn14search31turn14search11 | Precise rate/fee schedule and margin-call triggers are not fully disclosed in accessible primary pages (unspecified); company claims “zero margin calls” in announcements/coverage citeturn22search7turn22search34 |
| Provider | Loan type | Starting LTV (public) | Margin call / liquidation triggers (public) | Pricing & fees (public snapshot) | Custody model | Rehypothecation stance (public) |
|---|---|---|---|---|---|---|
| entity[“company”,”Ledn”,”crypto lender”] | BTC-backed loan (USD funded; multiple loan custody models) | Commonly shown at 50% in calculators (varies) citeturn14search36turn14search25 | Thresholds vary by product/jurisdiction (often not shown on marketing pages; unspecified) citeturn14search36turn14search25 | Examples shown: 2% admin fee; APR examples shown on borrowing pages and calculators (variable by time) citeturn0search26turn14search36 | “Custodied” loans: collateral held in custody (with Ledn or funding partner), ring-fenced; permitted re‑posting to a USD funding partner but “cannot be further lent out” citeturn14search1turn14search17turn14search13 | Standard loans explicitly described as rehypothecating collateral; custodied loans structured to avoid further rehypothecation citeturn0search35turn14search1turn14search5 |
| entity[“company”,”Unchained Capital”,”bitcoin financial services company”] | BTC-backed loan with collaborative custody | Exact starting LTV varies by contract (often not stated on the cited pages; unspecified) citeturn0search25turn14search2 | CTP violation triggers below 150% collateral-to-principal ratio (≈ 66.7% principal-to-collateral), 24-hour cure window; if not cured: foreclosure notice then liquidation sufficient to repay balance/fees; remaining collateral returned citeturn14search2turn14search10 | Pricing varies by loan agreement (unspecified in the cited help pages) citeturn14search2 | Multisignature address / collaborative custody described citeturn0search25turn0search34 | Public emphasis on borrower-verifiable custody; rehypothecation not described in the cited pages (unspecified) citeturn0search25turn14search2 |
| entity[“company”,”APX Lending”,”crypto lender | canada”] | BTC/ETH-backed loan (Canada-focused) | 20–60% origination range citeturn14search20turn14search0 | Soft margin call at 80% LTV; liquidation at 90% LTV (platform description) citeturn14search30turn14search20 | Rates “from 9.99%”; terms 3–60 months; early repay/redraw features described citeturn14search0turn14search20 | Collateral held in segregated cold wallets with BitGo Trust; Fireblocks used for in-transit protection (per APX materials) citeturn14search8turn14search0 |
| entity[“company”,”Arch Lending”,”crypto lender | chainfi inc”] | BTC/ETH/SOL-backed loan (line-of-credit style) | Up to 60% LTV citeturn20search4turn21search7 | Margin call/liquidation thresholds not clearly disclosed in the cited marketing excerpts (unspecified) citeturn20search4turn20search24 | “From 8.49% APR”; terms up to 12 months, extendable citeturn20search4turn20search24 | Qualified custody with Anchorage; marketed as insured and bankruptcy-remote citeturn21search7turn21search8turn21search15 |
| entity[“company”,”Strike”,”bitcoin payments app and lender”] | BTC-backed loans (12-month term) | Max initial 50% LTV citeturn21search0turn21search22 | LTV rises over time under “payment at maturity” because interest accrues; margin-call mechanics discussed in product materials but not fully enumerated in the cited excerpts (unspecified) citeturn21search22turn21search6 | 12-month term; interest “starting at 9.5% APR”; 0% origination fee; no early repayment fees citeturn21search0turn21search2turn21search20 | Collateral custody not specified in the cited pages (unspecified) citeturn21search0turn21search6 | Rehypothecation policy not specified in the cited pages (unspecified) citeturn21search0turn21search6 |
| entity[“company”,”SALT Lending”,”crypto-backed lender”] | Crypto-backed loans (long-term options) | Up to 70% LTV; SEC filing notes LTV below 70% in originations citeturn20search14turn20search38 | Liquidation mechanics depend on elected features/terms (not fully detailed in marketing excerpts; unspecified) citeturn20search2turn20search14 | Marketing: rates starting 9.95%, terms 1/3/5 years; fees page lists 1% origination and other fees citeturn20search14turn20search2 | Custody approach varies (not fully specified in cited excerpts; unspecified) citeturn20search2turn20search14 | Rehypothecation policy not stated in cited sources (unspecified) citeturn20search14 |
| entity[“company”,”Xapo Bank”,”gibraltar licensed bank”] | Bank BTC-backed loans | Up to 40% LTV citeturn20search17turn20search5 | Liquidation can be triggered if LTV rises too high (general product description); thresholds not specified in cited excerpts (unspecified) citeturn20search1turn20search17 | Variable interest linked to Federal Reserve rates; fixed repayment period; max loan amount shown as $5M on calculator page citeturn20search5turn20search9 | BTC deposited into bank vault in-app citeturn20search5turn20search17 | Rehypothecation policy not stated in cited sources (unspecified) citeturn20search17 |
| entity[“company”,”Sygnum”,”digital asset bank”] | Lombard-style credit lines (qualified / institutional) | Not shown in cited lending pages (unspecified) citeturn0search23turn0search27 | Not shown in cited lending pages (unspecified) citeturn0search23 | “Competitive rates” language; numeric pricing not disclosed in cited excerpts (unspecified) citeturn0search23turn0search27 | Banking/custody model implied (client relationship) citeturn0search23 | Rehypothecation not specified in cited lending pages (unspecified) citeturn0search23 |
At the federal level, a mortgage that is a closed-end consumer credit transaction secured by real property is subject to Truth-in-Lending and integrated disclosure requirements (Loan Estimate / Closing Disclosure) under the CFPB’s TILA/RESPA integrated mortgage disclosure rule. citeturn3search5turn3search17turn3search1 Mortgage originators also fall under SAFE Act requirements for licensing/registration via the NMLS framework (federal registration for bank employees; state licensing for nonbank MLOs). citeturn3search2turn3search6turn3search18
Crypto-related compliance depends on the exact business model. For AML, FinCEN’s interpretive guidance explains how BSA/MSB obligations apply to business models involving convertible virtual currencies, particularly where activity constitutes “money transmission.” citeturn3search7turn3search3turn3search27 Structuring a BTC-collateralized loan where the lender takes possession/control of BTC collateral can also intersect with state virtual currency regimes and general lending licensing laws (see “Key states” below). citeturn4search8turn4search6turn4search22
A critical mortgage-specific development is the FHFA’s direction to the GSEs to develop proposals to consider cryptocurrency holdings in single-family mortgage loan risk assessments, potentially without requiring conversion to USD, subject to being evidenced and stored on U.S.-regulated centralized exchanges. citeturn17search0turn17news38turn17news40 However, existing GSE seller/servicer guidance historically required conversion to dollars for use as a source of funds (and includes restrictions such as not using virtual currency for earnest money deposits), underscoring that agency-conforming channels and non-agency channels may differ for an extended period. citeturn17search4turn17search1
New York: Operating crypto custody/exchange-type activity in New York typically requires NYDFS authorization via BitLicense or an NY Banking Law charter; NYDFS also emphasizes custody structures, customer protection, and disclosure expectations for regulated entities. citeturn4search0turn4search8turn4search3turn4search11
California: California’s DFPI has taken enforcement actions relating to unlicensed crypto lending and highlights both lending-license and consumer-protection obligations; DFPI also describes the Digital Financial Assets Law (DFAL) licensure timeline (with licensure requirements for certain crypto companies serving Californians beginning July 1, 2026 / application pending alternatives). citeturn4search2turn4search22turn4search1turn4search5 Separately, DFPI notes the California Financing Law requires licensing and regulation of finance lenders and brokers making/brokering consumer and commercial loans. citeturn4search6turn4search14
Mortgage conduct is governed by the FCA’s MCOB sourcebook, which applies to firms carrying on home finance activities (including entering into regulated mortgage contracts and mortgage mediation). citeturn5search8turn5search4turn5search32
Crypto businesses in the UK fall into an AML/CTF registration regime where cryptoasset exchange providers and custodian wallet providers in scope must register with the FCA under the Money Laundering Regulations; the FCA’s own guidance states the registration requirement and references the relevant regulations. citeturn5search1turn5search25 This means a “Bitcoin-backed mortgage” provider that (i) does mortgage business and (ii) provides custody/wallet services (or uses a group entity that does) may face dual supervision burdens: mortgage conduct rules plus crypto AML registration and related operational controls. citeturn5search8turn5search1
EU residential mortgage origination is governed by national implementations of the Mortgage Credit Directive (MCD), including requirements around pre-contractual information, creditworthiness assessment, and APRC calculation frameworks. citeturn5search3turn5search19
Crypto regulation is increasingly harmonized under MiCA, which establishes a regime for crypto-asset service providers (CASPs) for covered services and includes investor-protection elements; ESMA highlights MiCA as instituting uniform EU market rules for crypto-assets not otherwise regulated. citeturn5search2turn5search26 ESMA has also warned against CASPs misrepresenting the scope of which products are regulated under MiCA, which is particularly relevant if a mortgage-related lender offers a mix of regulated custody/exchange services and unregulated lending products. citeturn5news40
A major caveat for “Bitcoin-backed mortgage” analysis is that crypto lending/borrowing may sit partially outside MiCA’s core perimeter depending on the exact structure (credit agreement vs investment product vs custody service). Practically, this pushes firms toward conservative compliance postures: clear disclosures, segregation of client assets, and avoiding “regulated status” confusion—especially when cross-selling. citeturn5news40turn5search2
Mortgage brokering and lending are largely regulated at the provincial level. For example, Ontario’s Mortgage Brokerages, Lenders and Administrators Act sets out licensing and standards of practice expectations, with FSRA describing licensing obligations and insurance requirements for mortgage brokerages/administrators. citeturn6search1turn6search13turn6search5
For crypto activity, FINTRAC describes “dealing in virtual currency” as including virtual currency exchange and transfer services, which can bring MSB obligations (including travel rule and reporting rules) depending on whether a firm’s activities meet these definitions. citeturn6search0turn6search8turn6search12 For bank exposures, OSFI has issued guidelines setting out capital and liquidity treatment of crypto-asset exposures for federally regulated institutions, with implementation indicated for fiscal Q1 2026. citeturn7search3turn7search7
Mortgage and consumer credit conduct is shaped by the National Consumer Credit Protection Act / National Credit Act framework, with ASIC’s Regulatory Guide 209 explaining ASIC’s expectations for responsible lending conduct. citeturn6search22turn6search2turn6search6
Crypto compliance commonly intersects with AML/CTF obligations overseen by AUSTRAC; AUSTRAC describes AML/CTF program requirements and maintains requirements around registration actions for digital currency exchange providers. citeturn7search0turn7search4turn7search24 Australia has also been pursuing a broader digital assets regulatory framework via consultation / proposed legislation processes, indicating a moving perimeter for custody/platform operators over the medium term. citeturn7search5turn7search25turn7search1
Crypto service licensing centers on the Payment Services Act licensing regime and MAS regulatory notices/guidelines; MAS Notice PSN02 sets binding AML/CFT expectations for digital payment token service providers, with later versions issued under the Financial Services and Markets Act framework. citeturn7search30turn6search11turn6search3 MAS also publishes guidelines on licensing for digital token service providers, reflecting a structured licensing framework for crypto services. citeturn7search2
Mortgage lending is primarily a banking and secured-lending domain, but if a “Bitcoin-backed mortgage” product involves a DPT service (custody, transfer, brokerage), crypto licensing and AML compliance become centrally relevant. citeturn6search3turn7search6
A crypto-collateralized mortgage (as described in reporting on Milo) combines (i) a traditional lender paying the seller in fiat and placing a lien on the home and (ii) a pledge of BTC/ETH collateral in an amount stated as equal to the home price in examples. citeturn14search31turn14search11 This is structurally different from a BTC-backed cash loan (e.g., APX, Strike) where only the BTC collateral secures the lender and no property lien exists, creating a “margin loan” style liquidation profile. citeturn14search20turn21search0turn14search30
Underwriting-recognition programs (RateFi / Newrez / Newfi DSCR guidelines) are different again: they generally do not require pledging BTC, but rather require verified holdings at specific custodians/exchanges and apply caps/haircuts for qualification. citeturn19search37turn19search1turn19search2
flowchart TD
A[Borrower onboarding] --> B[KYC/AML + identity checks]
B --> C[Select product type]
C --> C1[Mortgage underwriting program<br/>crypto as reserves/income proxy]
C --> C2[BTC-collateralized cash loan]
C --> C3[Crypto-collateralized mortgage<br/>property lien + crypto collateral]
C1 --> D1[Verify holdings at approved custodians/exchanges]
D1 --> E1[Apply haircuts/caps to qualifying assets]
E1 --> F1[Close mortgage in USD]
C2 --> D2[Post BTC collateral]
D2 --> E2[Fund loan in fiat/stablecoins]
E2 --> F2[Continuous LTV monitoring]
F2 --> G2{LTV breach?}
G2 -->|No| H2[Regular payments / optional early repay]
G2 -->|Yes| I2[Margin call / cure window]
I2 --> J2{Cured in time?}
J2 -->|Yes| F2
J2 -->|No| K2[Foreclose/seize collateral<br/>per contract]
K2 --> L2[Liquidate sufficient collateral<br/>to repay principal+fees]
L2 --> M2[Return remaining collateral]
C3 --> D3[Post crypto collateral]
D3 --> E3[Close: lender pays seller; lien recorded]
E3 --> F3[Payments per schedule]
F3 --> G3{Default or collateral covenant breach?}
G3 -->|No| H3[Loan runs to maturity / refinance / payoff]
G3 -->|Yes| I3[Remedies: collateral access and/or foreclosure]
I3 --> J3[Collateral liquidation and/or property sale]A concrete example of liquidation mechanics is described in Unchained’s “CTP violation” process: an automated violation occurs if collateral-to-principal falls below 150%, with a 24-hour cure period; failure leads to a foreclosure notice and later liquidation of sufficient collateral to repay unpaid balance and fees, with remaining collateral returned. citeturn14search2turn14search10 By contrast, APX describes a two-stage threshold system: soft margin call alerts at 80% LTV and liquidation at 90% LTV. citeturn14search30turn14search20
BTC-collateralized lenders often emphasize collateral-first underwriting (sometimes no credit checks) and rely on overcollateralization and automated/contractual liquidation to manage credit risk. APX explicitly markets “no credit checks” and describes borrowing power as a function of posted collateral and LTV. citeturn14search0turn14search20 Strike similarly emphasizes LTV-based sizing and offers different payment structures (monthly interest vs maturity payment) that affect how LTV evolves over time. citeturn21search22turn21search14
Mortgage-underwriting programs impose different constraints. RateFi states it will not take custody, but requires crypto to be held in “approved custodial wallets” and excludes non-custodial wallets and decentralized exchanges, effectively substituting custody-location eligibility for the traditional “seasoned funds in depository accounts” paradigm. citeturn19search37turn19search35 Newfi’s DSCR reserve guideline expansion is similarly custodian-specific and cap-specific (25% BTC/ETH value at Coinbase; 50% crypto funds/ETFs at traditional providers; recency within 60 days), indicating that “crypto in underwriting” is being operationalized with conservative caps and documentation recency requirements. citeturn19search2turn19search5
Agency-conforming baselines remain more restrictive in primary guidance: Fannie Mae’s selling guide historically accepted virtual currency for down payment/closing/reserves only after it has been exchanged into U.S. dollars and held at a U.S. or state regulated financial institution, and it disallowed use of virtual currency for earnest money deposits. citeturn17search4 Freddie Mac guidance similarly required cryptocurrency to be exchanged for U.S. dollars if it will be used as a source of funds. citeturn17search1
The dominant borrower risk in BTC-collateralized structures is liquidation during drawdowns. Lenders explicitly describe liquidation as a function of rising LTV when BTC price drops. citeturn20search1turn21search9turn14search30 The chart above illustrates the basic math: a higher starting LTV materially reduces the price-drop “buffer” before liquidation at a fixed liquidation threshold, which is why providers often cap origination LTV (e.g., 50–60%) and set liquidation beyond that. citeturn21search22turn14search20turn14search30
Loan design can either amplify or dampen liquidation risk. Strike notes that under a “payment at maturity” structure, interest accrues and can increase LTV over time, increasing liquidation risk if collateral value falls. citeturn21search22turn21search4 Longer-term products (e.g., multi-year BTC-backed loans) may reduce refinancing pressure but do not eliminate collateral volatility risk; liquidation remains a function of LTV thresholds and collateral pricing. citeturn20search14turn20search1
Custody is a primary risk axis because a borrower frequently must transfer BTC control to the lender or a custodian. NYDFS has issued guidance emphasizing custody structures and the need for sound custody and disclosure practices for licensed entities, reflecting supervisory concerns after crypto failures. citeturn4search11turn4search3 Providers market mitigations such as segregated wallets, qualified custody, and “bankruptcy-remote” structures (e.g., APX’s segregated custody statements; Arch’s “bankruptcy-remote” positioning). citeturn14search8turn21search7turn21search15
Rehypothecation is a distinct and material risk because it creates correlation between borrower collateral and the lender’s own funding/liquidity profile. Ledn provides a clear public contrast between “standard” loans that rehypothecate collateral to lower rates and “custodied” loans where collateral may be re-posted only to a funding partner and cannot be further lent out to generate interest. citeturn0search35turn14search1turn14search5 Firms advertising “no rehypothecation” often position it as a key post‑2022 trust signal (e.g., APX and Arch). citeturn14search0turn21search8
The compliance perimeter for crypto lending has proven unstable. California DFPI enforcement actions and press materials illustrate regulator willingness to treat certain crypto-backed lending as requiring lending licenses and consumer protection compliance. citeturn4search2turn4search22turn4search6 In New York, BitLicense/charter regimes and updated custody guidance underscore that custody and consumer disclosures are not “optional” in regulated states. citeturn4search0turn4search3turn4search8
In the EU, MiCA creates a harmonized regime for CASPs and includes consumer-protection, asset safeguarding, and complaints handling expectations, while ESMA warns firms not to blur regulated and unregulated product lines. citeturn5search2turn5news40 In the UK, firms in scope must register for crypto AML compliance and mortgage business is subject to MCOB. citeturn5search1turn5search8
Mortgage-plus-crypto products frequently stack AML obligations: standard mortgage AML plus crypto VASP-style controls. FATF’s guidance and targeted updates highlight supervisory expectations for a risk-based approach to virtual assets and for Travel Rule implementation. citeturn10search3turn10search7turn10search11 FINTRAC explicitly defines “dealing in virtual currency” and publishes guidance on Travel Rule requirements, while MAS Notice PSN02 sets AML/CFT controls for DPT service providers. citeturn6search0turn6search8turn6search11
For true mortgages in the U.S., TILA/RESPA integrated disclosures (Loan Estimate and Closing Disclosure) are core protections intended to standardize cost and risk disclosure. citeturn3search5turn3search17 For non-mortgage BTC-backed loans, protections depend more heavily on contract, disclosures, and state lending/consumer protection regimes; California’s DFAL bill text explicitly contemplates required consumer disclosures including fees and charges schedules for covered digital financial asset activities. citeturn4search5turn4search6
Across jurisdictions, the key borrower tax question is whether posting BTC as collateral is a taxable disposal. In the U.S., IRS guidance establishes that virtual currency is treated as property and general tax principles apply, meaning a loan itself is typically not a taxable event, but a liquidation/sale of collateral can trigger a taxable disposition depending on facts. citeturn8search0turn8search4turn8search12
The UK has unusually explicit guidance for DeFi collateral: HMRC explains that tax treatment depends on whether the collateral transfer results in a disposal; if it does, the disposal occurs at the time collateral is transferred, and later liquidation may not have additional CG consequences because the disposal already occurred; if it does not, liquidation can be treated as the borrower’s disposal via nominee principles. citeturn8search1
In Australia, the ATO treats cryptoassets as CGT assets and notes CGT events occur on disposal; ATO community guidance indicates using crypto as collateral generally does not trigger CGT unless the crypto is disposed of (fact-specific). citeturn8search3turn8search7 In Canada, CRA guidance emphasizes that dispositions (trading for fiat/other crypto, using to buy goods/services, transferring ownership) generally have tax implications, with reporting depending on whether gains are capital or business income. citeturn8search2turn8search6 Singapore’s IRAS guidance covers digital tokens under normal income tax principles for businesses and provides GST treatment for digital payment tokens, including treatment of DPT supplies and loans as exempt supplies in GST terms from 1 Jan 2020. citeturn9search7turn9search0turn9search1
For lenders and corporate balance sheets, crypto accounting has evolved materially in the last few years. In U.S. GAAP, FASB’s ASU 2023‑08 requires in-scope crypto assets to be measured at fair value with changes recognized in net income, effective for fiscal years beginning after Dec. 15, 2024. citeturn10search12turn10search4turn10search0 Under IFRS, the IFRS Interpretations Committee concluded holdings of cryptocurrencies generally meet the definition of an intangible asset under IAS 38, unless held for sale in the ordinary course of business (IAS 2 inventory). citeturn10search1turn10search9 These accounting treatments influence lender capital strategy, disclosed earnings volatility (if crypto is held on balance sheet), and collateral management policies. citeturn10search4turn10search1
Post‑2022, centralized lenders appear to have shifted toward tighter collateral standards and more institutional capital sources. Galaxy Research notes un(der)collateralized lending became less common after 2022 credit implosions, with surviving firms “self-regulating,” tightening internal risk controls, and emphasizing collateral quality and transparency. citeturn23view0 This aligns with product changes emphasizing segregated custody, rehypothecation limits, and conservative LTV structures. citeturn14search1turn21search8turn14search30
For banks and bank-adjacent entities, prudential standards constrain how large crypto-lending books can become on regulated balance sheets. The Basel Committee’s prudential treatment of cryptoasset exposures and related supervisory commentary emphasize conservative capital treatment and exposure limits for higher-risk cryptoassets. citeturn10search2turn10search18turn10search22 In Canada, OSFI similarly sets out capital and liquidity treatment expectations for crypto-asset exposures for federally regulated institutions, effective in fiscal Q1 2026. citeturn7search3turn7search7
A practical implication is that many “Bitcoin-backed mortgage” structures in the near term may remain non-agency / non-QM or private-bank / qualified-client products (and/or may rely on specialized funding partners), because conforming channels and prudential constraints can be slower-moving than fintech product experimentation. citeturn18view0turn19search1turn5news40turn23view0
Galaxy’s Q3 2025 breakdown provides an anchor for “market size estimates” in this segment: total crypto‑collateralized lending at $73.59B, DeFi apps at $40.99B, and CeFi open borrows at $24.37B (with the remainder attributable to crypto‑collateralized CDP stablecoin debt by subtraction from the stated total). citeturn23view0
So hung out with a great friend last night, met some of his buddies, and just thinking in general… What is it that seems to bother everybody, regardless of who they are or what their position is?
Stress.
So I think first the psychologist in me, or the physiologist in me,… It is, thinking about what “stress” is.
First, the funny thought is there is something called “eustress”, which is, good stress. This is the type of stress which is actually insanely healthy for us, whether it be doing hot yoga, heavy weightlifting, one rep max, quick sprints, or even the stress of gravity on our body organs and bones.
While we are trying to avoid is the bad stress, the chronic stress which does not benefit us, the stress which prevents us from getting a good night sleep?
First the general thought is throw your iPhone into the trash. Honestly at this point, the iPhone is a slave device. The true and noble goal is to be free.
What is the sign of a free man?
No phone.
So the general thought is whenever you go to a social affair or something, just turn your iPhone all the way off, 100% off, keep it in the glove compartment of your car or in your backpack or whatever.
My funny intervention is, instead, what you use instead is your iPad, iPad Pro.
I called the iPad the god device, the god tablet. Why?
First, like assuming you have the newest iPad Pro, with the newest M series chip, even if you benchmark the newest iPhone against it, the iPad Pro will always win.
What’s also interesting is, in terms of longevity, most likely you will keep your iPad Pro for longer than you would keep any iPhone Pro.
In fact, I have an interesting reverse status marker; typically, what’s really really fascinating is if you meet somebody with a very very old looking iPhone, it is typically assigned that they are free. Or even better yet, somebody just hanging out at the steps somewhere, without any phone AirPods sunglasses on whatever.
So a new big thought is, I still really believe this… The future is going to belong to those with social skills. Or better yet, fearlessness in social interactions, chutzpah, audacity, extreme friendliness, and ability to have everyone love them.
The truth is, when it comes to politics, business, art, everything in between… It really comes down to social power. Social capital etc.
It’s also really fascinating in the brave new world of AI, the qualities which will really dictate the future is in regards to Social Capital. Why? It’s my general thought that, it’s better to have like one or two or three insanely rich powerful and influential friends, rather than having like 100,000 middleman.
And this is also the difficult thing… How do you find those 1 to 3 people? This sounds kind of cheesy but, I think the general thought is just radically be yourself. People are not stupid. It’s also insanely obvious when people are just being thirsty, and obviously, rubbing people up to just gain clout.
Another thought, just an experiment this upcoming year so… Just radically be yourself honestly, my thought is, assuming that your family jewels are safe and whatever, and also assuming that economically you are secure, then, I say take any and all social risks possible. Because honestly, whether the upside or downside from social interactions doesn’t really matter because honestly it is not really truly intertwined with your economic situation. And also this is our Spartan creed, money doesn’t really matter much. Certainly just covering your basic living expenses is honorable, but, having more money than you need is not really necessary. our goals is extreme happiness happiness, a beautiful grim smile, just like in the movie 300 hundred when the Spartans are laughing under their shields, saying “we shall fight in the shade!”
I really love this idea of in life, it is all comedy! Even the most tragic and grim.
Even brave Odysseus, after seeing his men gobbled up by the cyclops, said, be brave be steady my noble heart, for one day in the future you shall look back on this, smile and laugh.
And actually I think that this is the cheerful wise, gay science, the joyful wisdom; the magical magician stoic Spartan philosopher in us; being able to transmute tragedy into comedy. 
So assuming you’re somebody who lives with chronic stress, first you gotta identify the root. It’s like weeds in your garden… You could just pick out the leaves but the weeds will always come out again, unless you dig really really deep, get your fingernails dirty, and forcibly dig out the roots.
Frankly speaking I would say probably like 99% of the annoyances probably come from your loser iPhone Pro.
The first thing is to just radically turn off all your notifications, silence your phone, in the iPhone phone settings tab, turn off all notifications and silence everything, even to your detriment.
Second, I avoid messaging and text messages like the plague. I’ll do it every once in a while if extremely needed but otherwise… I have a radical new idea,
FaceTime or nothing.
Once again I think it is better to just keep one or two Social connections strong, and whenever you need to interact with somebody, just FaceTime them. Why?
It’s kind of ridiculous, text messaging like 1000 times a day, is like the reverse of what futuristic technology and AI would look like. For example, if you were Tron ares, Jared Leto,,, can you imagine, him as a futuristic AI agent, just like sitting down crunched over, clumsily clumbering away at his tiny 5 inch device, hitting carpal tunnel in his thumbs,? No. First, the hilarious thing is he never looks at a screen,… he IS the screen.
Second, the truly intelligence strategy is, if you need to do stuff, voice dictation is like 1 trillion times better quicker and more efficient than even the fastest typist. But why don’t people do it? A sociological fear of looking stupid. 
The truth is, and this is why I love Asia being in Asia, watching the mainland Chinese, they have no shame; I think the reason why everyone hates them is that they secretly wished they were them.  they talk loudly, spit anywhere, they are always just leisurely roaming around in their Gucci flip-flops, Louis Vuitton shorts, crew cut hair haircut, at ease, clear conscience.
I think the problem with Americans is, we are so self-conscious, we are too private too considerate, too Victorian too British. Come on guys, America Americans, aren’t we supposed to be the country the land of the brave, not the land of the meek?