We have a banking crisis – not a housing crisis
Do you ever wonder why house prices always go up?
The explanation you will most likely hear in the media and from politicians is that we are not building enough homes.
Or that there’s just too much demand. Immigration or foreign investors are usually to blame.
But there’s a much bigger problem that no one is talking about.
Too much money is being created by banks.
According to the Bank of England, around 80% of the money in the economy is created by banks when they create loans.
A broken system
As more and more money is created through mortgages, prices keep going up. And eventually, homes start to become unaffordable.
The financial crisis showed how unsustainable this system is. But few seem to recognise or want to tackle the problem.
As we inevitably head into the next banking crisis, the latest government research shows the UK rental market has increased by 63% since 2007.
With 1 in 3 millennials predicted to never own a home and renters spending 45% of their income in rent, its time to rethink the financial system.
PropBloc is a digital building society.
You might have wondered where the term ‘building society’ came from. The clue is in the name. Building societies used to fund the building of new homes for their members.
The first building society was founded in a pub in Birmingham in 1775. Its members would pool their money together each month to build houses for one another.
Eventually, building societies became financial institutions. They would pool the money together from all their savers and lend it out to people who wanted to buy their homes.
Borrowers would pay interest back to savers. This created a virtuous circle that was mutually beneficial to everyone.
Unfortunately, most building societies have now become banks. But at PropBloc we are launching a cryptocurrency to keep this tradition alive.
What is a Cryptocurrency?
Bitcoin is the world's first cryptocurrency.
What does bitcoin do? It's simple. It lets you send and receive value, to and from anyone in the world, using nothing more than a computer, and an internet connection.
How does it do this? It uses a blockchain. Put very simply, a blockchain is an unalterable list that keeps a record of who owns what. The key point is that the list cannot be tampered with. This is because an up to date copy of the list of who owns what is stored on the computer of every member in the system.
Now, why is it revolutionary? Because it provides an alternative way to store value and pay for things that cuts out the banks entirely. To send Bitcoin to another person you simply update the list with who owns that Bitcoin. There’s no need for a middleman.
What's happening today? Following Bitcoin's lead, others are now creating their own alternative cryptocurrencies, each with its own unique purpose. That includes us.
What is PropBloc doing? When you buy our cryptocurrency you join our blockchain. This tracks all the investors of our building fund.
We use this money to build properties to rent. As an investor, you are paid a proportion of the rent each month and can sell your crypto at any time.
Whatsmore if you rent with us, then the more crypto you own the more rent comes back to you. Gradually you can earn enough to buy your home outright.
No banks. No mortgage. And no mortgage deposit required.
How does it work?
Buy our crypto
Savers pool their money with us by buying our cryptocurrency.
Build your savings
We use this money to build properties to rent.
We pay the rent directly to coin holders. The more coins you hold, the more rent comes back to you.
Buy your home
Whether you just invest or rent with us too, gradually you can earn enough to buy your home.
Sign up now
We're looking for our first 5000 users. Sign up below to be one of the first.
Cryptocurrencies are the future of money.
Bitcoin and other cryptocurrencies are already disrupting the banks by creating alternative stores of value and methods of payment.
We go even further by creating a currency thats backed by property and helps you buy your home.
Why are cryptocurrencies so volatile?
One of the biggest drivers in the cryptocurrency market is speculation. This is where investors bet that the price of different cryptocurrencies will go up or down by buying and selling. This makes the price go up and down rapidly.
The purpose of our cryptocurrency is to build properties to rent and eventually sell. Its price is therefore based on the housing market making it less volatile than others.
How do I get my money back?
Each month you are paid rent in proportion to the coins you own. This helps you grow your savings. But just like buying shares, you can always sell your investment to another buyer.
If you sell your coins for more than you paid for them you can make money from selling them. Equally, if your coins decrease in price you may lose money by selling them.
How does PropBloc make money?
As a building society, we are run in the interests of our members. This includes our renters and our crypto investors. Our business model is primarily about building attractive homes and paying the rent back to you.
We take a percentage of the profits to run the society. So unlike banks, we only make money when you do.