So, my wife and I are thinking of moving. We were going to rent again, but then I thought perhaps I could provide a great investment opportunity for some of the uber whales of MoneroWorld and add market pressure for Monero at the same time.
This would also have the nice benefit of not putting more money into the banking system via a mortgage.
So, details could be worked out, but it could be as simple as a personal loan. We'd agree that the monthly payments would be in Monero (so I'd be buying X monero every month with fiat), some annual interest percentage, and we could also work in somewhere that if Monero valuation skyrockets, I'd agree to return up to some percentage of the increased valuation. Because I get it - everyone wants to hodl because price will moon, but we need to actually use it as a currency.
And I could also guarantee that I'd run a mining operation in the home to support the network
Just thought I'd put that out there.
I am not quite clear what you are asking for here GA.
(1) Somebody lends you a chunk of XMR and you pay them back in monthly payments of XMR with interest
or
(2) Somebody lends you a chunk of XMR and you pay them back in another currency
Borrowing a large amount in a currency other than the one you earn is generally a highly risky business, especially for a volatile crypto-currencies. There are enough problems in various European countries right now where borrowers took out mortgage loans denominated in Swiss Francs, and then the value of the Swiss franc appreciated...
EDIT: I think you mean (1), and then the big risk if XMR appreciates is that you would be forced to default on the loan (like the Swiss franc problem, only worse). I suppose someone might see a loan as a reasonable hedge against the XMR price falling/stagnating (if it moonshoots, the rest of their stack would more than cover any losses). Still, it would be a very risky investment due to the currency volatility, and should consequently carry a massive interest rate to cover that (which would then make it unattractive to you). Just my 0.02 XMR.
Its option 1, but the XMR would be tied to whatever fiat the parties agree to (probably the fiat associated with the purchase of the item). So its using the value transfer component of Monero as opposed to the value storage component.
As monero functions right now (no GUI, okay hashrate, okay volume), I could arrange with anyone on this planet for a "home loan" investment offer. They somehow acquire the 300k - 400k USD worth of XMR, send it to my wallet, and then I find a way to exchange that back to USD (without tanking the price) to actually buy the house. Because XMR is currently valued in fiat (and not xmr), the loan would be valued in fiat. So the 800k monero loan is really a loan for 400k USD.
Then, when my monthly paycheck comes in, I buy XMR to send back to the investor at some pegged USD amount. 2k a month. So I buy 2k USD worth of Monero a month.
Yes, I understand that this type of mechanism is difficult between currencies, because if I borrow the 800k monero (at current prices) for a home, and then monero moonshots to $1000, then im in a really bad situation paying back that loan if I had to pay back the same amount of Monero.
However, I imagine that an arrangement could be reached between understanding individuals wherein this valuation increase is insured to a certain percentage. E.g., me (the borrower) would agree to pay up to 20% of the increased USD value of monero.
So if the 400k USD of monero becomes 500k USD of monero, then the borrower would pay back 420k USD worth of monero, plus whatever the agreed upon interest rate of the loan was.
If the value of monero goes down or stays flat, the lender gets 400k worth of monero plus the agreed upon interest rate.
So the lender could potentially lose out on vast amounts of return in the case of a moonshot, or secure a definite return based with a moonshot insurance.
The only real problem would be the on and off ramps to Monero. I.e., if someone had a stash of 800k monero,
i think it'd be damn near impossible to sell that on poloniex without tanking the price. nevermind. realized that would be just one hell of a sell wall.