Umm... Not really. As someone who recently worked for a fiat lender, our unsecured loans were at 15%, and that is on the low side, because it was a credit union.
Certain collateralized loans had lower rates, but currently only as low as 5.5%-6% for the most qualified borrowers, but you have to remember that the type of collateral most institutions are lending on isn't nearly as volatile as Bitcoin.
There is also the issue that Strike doesn't have permission to print money. They have to incentivize lenders to put up 100% of the amount financed, while most traditional institutions only keep reserves of maybe 10% and they get to create the rest of the money out of thin air. Strike, on the other hand, has to offer their lenders an interest rate that is attractive enough to outweigh the opportunity cost of putting the money somewhere else, because they don't get to fund new money into existence like a bank can.
There is no math or situation in the world that could make me think giving up keys to 2 bitcoin for 1 bitcoin worth of fiat is a good deal at 12% Apr with high chance of margin call and liquidation because of volatility. Sorry I think it’s a turd.
I tend to agree, and that's why I have never taken a loan on my Bitcoin. Just explaining why the loans are structured the way they are compared to traditional collateralized loans.
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