As we now begin the downhill slide towards 2020, the first half of this year seemed to pass by at lightning speed. It was only February this year when we published in this very magazine regarding Bitcoin investments, where Thai property owners take equity and baht cash out of their real estate assets, to invest into the Crypto scene. At that time we published a price of $3,500 for 1 whole Bitcoin with reasonable confidence prices would increase. We are now around $12,000 has just pulled back a little from almost $14,000. So in the first 6 months of this year, up to 400% increase… Is there any other investment product anywhere that could produce this kind of yield…?

Many factors are plausible to act as a reason for this jump in price and some strong fundamentals lead to the fact institutions are now in on the game. Fidelity Investments, for example, is a 7 trillion dollar US company and now, reportedly offers crypto investments within their group. The total market cap of all crypto near the start of this year was only 115 billion dollar. In hindsight, these kinds of number differences are a sure thing for a price increase however after the yearlong 2018 bear market, many might have been super cautious to invest any further into the crypto scene although as the famous Warren Buffet might have once said, “be greedy only when others are fearful.” January was certainly that time to be greedy.

Other firms such as digital currency asset management, Grayscale Investments, have been promoting a controversial, #DropGold, #BuyBitcoin campaign with a view that “Bitcoin has the potential to radically transform our concepts of money, store of value, and the means by which assets are exchanged the world over.” said Barry Silbert, Founder of Grayscale. Certainly from an investor return perspective, Gold has shown an almost stationary growth in comparison to Bitcoin and crypto returns.

One further notable development this year is the fact digital currencies are now becoming more usable in daily life and considered to be more like an actual “currency”. Take for instance XcelTrip.com which recently partnered with VergeCurrency (XVG), their new website (which is much like Booking.com or Agoda, Thailand’s most popular hotel booking websites), this allows users to book Hotels using crypto, of course Pattaya & Jomtien accommodation options are there too. It also seems to offer flight bookings payable with crypto. The main crypto currencies such as Bitcoin, Ethereum, Litecoin and of course Verge Currency are all usable on this site. The about us section states its company is “A Next-Gen Blockchain powered Travel Platform which has been built to disrupt the trillion-dollar travel industry.” Notice again, there is a “Trillion dollar” reference in the website. Through XxcelTrip, it states that it is possible to “book with crypto at more than 800,000 hotels, and around 400 airlines are being added. XcelTrip App is now downloadable on both iOS and Android devices.”

For those that still prefer to use old fashioned debit cards to facilitate spending rather than making a payment from a smartphone device, Paycent.com which has links to use Union Pay & Mastercard symbols, allows users to spend their crypto at the local 7/11 all around Thailand. Storing money away from traditional banks and spending via crypto cards and booking hotels using crypto is truly mass adoption friendly.

The most recent and prolific free marketing campaign for Bitcoin and Cryptocurrency investments came from the massive Facebook.com platform. Mark Zuckerberg came out to announce their Libra coin is under way and during the last couple weeks released a white paper on its plans. There has been no other global social tool which has ever captured such a large scale public database and now, they are launching their own coin. Whilst there are many differences between Libra, Bitcoin and other crypto currencies, a large scale firm entering the market like Facebook will only and surely, have a positive impact for significant growth within the total cryptocurrency market cap…

Now, going back to whether it was a good idea to raise Mortgage finance equity release against Thailand condominiums and villas to invest into cryptocurrencies… Interest rates typically at MBK Guarantee Co., ltd. start from 8.65% (Thanachart MLR + 2%) per annum and are payable over a 10 year term. Payments can be as low as THB 10,600 per month for every 1 million borrowed, on balloon payment terms. If prefer to pay off fully within the contract, monthly installments increase to start from just THB 13,100 per month. Up to 60% valuation against the property can be Mortgaged. Certainly if one borrowed at the start of this year, the loan would have been paid off by now and well in profit. The present Total Crypto Market Cap is around 346 billion dollars as reported by the popular CoinMarketCap.com website at time of writing. The take away for me here, is the billion dollar present market cap Vs. institutions & travel industry initiatives where value is in the trillions.

For those who own land around the kingdom and are a little more aggressive with their investments, it is also possible to borrow under Kai Faak terms for again, up to 60% of the valuation. Short term 1-3 year availability and interest paid up front with no monthly instalments. i.e. Borrow today, see you again in 12 months’ time unless you wish to pay off early. Interest Rates on Land are 12% per annum. Comparable to Bitcoin returns…again insignificant (assuming continuation of forecast crypto values).

For further information on how to “Finance Property, Land & Condos in Thailand”, please feel free to email [email protected] OR, call 66 (0) 81278 5382 OR, Line ID stuartmaxwellfoulkes, I shall than be happy to assist. To speak with a native Chinese national, contact Rose on 66 (0) 95648 2913 or WeChat: rose215620 or email [email protected]

Note – Cryptocurrencies might be considered a high risk investment and all could be worth zero tomorrow. This article is not to be considered as financial advice and all references and content is for information purpose only. If one chooses to make a Mortgage or Kai Faak, the collateral is at stake and could be forfeit to the lender upon default.