Buy with Bitcoin without Selling Your Bitcoin: The Rise of Bitcoin-Backed Mortgages
In a recent episode of the Bitcoin Fundamentals podcast, Preston Pysh sat down with CJ Konstantinos, founder of People’s Reserve, to explore a revolutionary new approach to home loans. What if you could use Bitcoin to dramatically reduce the interest rate on a mortgage, without ever selling your coins?
CJ’s new loan product does just that. It allows individuals to post Bitcoin as collateral alongside their real estate, reducing lender risk and, in turn, lowering borrowing costs.
What Is the People’s Reserve?
People’s Reserve is a company dedicated to helping Bitcoin holders unlock the financial power of their holdings—without selling them. Their flagship product is a Bitcoin-powered mortgage that reduces your interest rate as you post more Bitcoin as collateral.
CJ explains it like this: Your home secures the loan as usual, but your Bitcoin acts as a risk mitigator. The more you post, the lower your interest rate goes. Unlike traditional Bitcoin-backed loans, there is no liquidation risk. If Bitcoin’s price drops, your interest rate may rise—but you won’t lose your coins.
Why It Matters: No More Forced Selling
One of CJ’s most powerful observations is that Bitcoin is wealth locked in the internet economy. For many, their coins are “trapped equity.” People want to be able to invest in Bitcoin just like you would a home, so it makes sense they would want to be able to borrow against it.
Current Bitcoin loan products carry high interest rates and the risk of liquidation. In contrast, CJ’s mortgage uses multi-signature wallets, avoids rehypothecation, and adapts interest rates to market conditions. That means you keep your Bitcoin and access liquidity without fear.
How the Self-Repaying Mortgage Works
- Apply for a standard mortgage.
- Post Bitcoin as additional collateral.
- Interest rates adjust based on your BTC-to-loan ratio.
- No margin calls. If Bitcoin falls in value, your rate adjusts, but your coins remain safe.
With the right ratio, rates can dip as low as prime minus 50%, providing access to ultra-cheap capital.
Beyond Mortgages: Bitcoin Bonds
People’s Reserve also offers a “Bitcoin Bond” for those interested in yield without losing upside potential. For example, 80% of the bond is allocated to a U.S. Treasury, while 20% goes into Bitcoin. If Bitcoin rises, you enjoy upside exposure. If it falls, your principal is still protected by the Treasury investment.
This model not only protects downside risk but also transforms Bitcoin into a yield-generating asset. The implications for savers, retirees, and institutions are enormous.
Macro Implications: A New Financial Paradigm
CJ and Preston also tackled larger themes—like why fixed-rate mortgages might be a relic of the fiat system. In a truly free market, interest rates should reflect risk. Bitcoin-backed loans achieve this organically, without needing a central bank to dictate terms.
And as demand grows for Bitcoin-denominated products, governments may follow suit. CJ believes municipalities and even states will start issuing Bitcoin bonds to attract capital, rebuild infrastructure, and diversify away from U.S. Treasuries.
Final Thoughts
Bitcoin isn’t just digital gold. It’s becoming the foundation for a new financial system—one built on transparency, scarcity, and individual sovereignty. The People’s Reserve is a glimpse into that future: where your Bitcoin doesn’t just sit in cold storage but empowers you to buy a home, generate yield, and build a life.
Interested in learning more? Follow CJ Konstantinos on X (@CJKonstantinos) and explore more about People’s Reserve at their official site.
This is not financial advice. Please consult with a licensed financial professional before making investment decisions.
