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Bitcoin owners are using crypto-backed loans to purchase real estate without selling their bitcoins, avoiding capital gains tax and remaining open to growth.

Bitcoin owners are using crypto-backed loans to buy real estate without selling a single sat, while avoiding capital gains tax.

According to Mauricio Di Bartolomeo, co-founder of Ledn, this new trend is gaining traction among early cryptocurrency users, entrepreneurs, and wealthy individuals who are 'rich in bitcoins' but often do not meet traditional criteria for real estate financing.

'Borrowing using bitcoins as collateral typically does not trigger capital gains tax in most jurisdictions, as borrowing against an asset is usually not a taxable event — you are not selling your bitcoins,' Di Bartolomeo said.