Better and Coinbase have launched a mortgage product that allows home buyers to use Bitcoin (BTC) as collateral for their down payment. Gold advocate Peter Schiff strongly criticized this structure, arguing that it shifts the risk to lenders and could easily collapse if prices fall.
Better and Coinbase launch Bitcoin-backed mortgage
On March 26, the two companies announced a partnership to offer mortgages linked to Fannie Mae standards and secured by digital assets. According to the press release, borrowers can use their Bitcoin or USDC (USDC) holdings as collateral without having to sell or trigger a taxable event.
Better, introducing itself as the first AI-native mortgage platform, stated that this product targets Americans who hold cryptocurrencies but lack cash savings to use as traditional down payments. They also added that even if the Bitcoin price falls, margin calls will not occur for borrowers, and collateral will only be liquidated if repayments are overdue by more than 60 days.
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Schiff harshly criticizes Bitcoin collateral risks
Schiff immediately countered.
In a post on X, he stated, "Making Bitcoin a down payment for home loans is a terrible idea," pointing out that it "significantly increases the lender's risk." He also said, "If Bitcoin crashes, the down payment disappears."
Additionally, the lending institution mentioned that it cannot touch the collateral until the borrower is in default, and even described the entire model as a "scam to prevent people from selling Bitcoin to buy homes."
Van de Poppe and Schiff have differing Bitcoin outlooks
This product was launched at a time when Bitcoin itself was under selling pressure. At the time of writing, BTC dropped below $68,000, falling about 3% over 24 hours and also around 3% over the week. Nevertheless, it has increased by about 6% over the past 30 days.
Still over 45% lower than the all-time high recorded in October 2025.
Analyst **Michaël van de Poppe** interpreted this decline differently. He stated that the selling by short-term holders is ongoing and claims that this is seen as a pattern associated with a long-term accumulation phase as weak hands leave the market.
Meanwhile, Schiff warned in a separate commentary that Bitcoin could fall to $20,000. This level represents an 84% drop from the peak of $126,000 in October 2025, which could materialize if Bitcoin loses the $50,000 support. He argued that there is a high likelihood of further declines based on the evaluation losses of Michael Saylor's strategy and questioned whether Bitcoin is suitable as a reserve asset due to its high volatility.
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