LNMarkets is futures and options not a fiat loan. Yes there is “borrowing” with leverage but very different than borrowing against bitcoin to buy a car or some shit.
Discussion
Yeah but technically it still would free up bitcoin as if it was loaned to you, with the risk of liquidation of the collateral you place (or stop loss targets) and the work needed to manage that risk. It's like how investors use LEAPS to get exposure to a stock over a year or more without actually putting all of their collateral into the equivalent amount of equity for the same price fluctuation. That frees up more collateral to be used anywhere else because of the fungibility of money. So technically, it's the same, just with highly adjustable risk and risk management requirements.
Any form of loan involves speculation, like an investment. That's why corn is telling me to be humble and don't use loans.
Of course I'm invested in Strategy anyway so... lol! But it's a small part of my overall wealth.
Kind of I guess but collateral difference is huge ie strike you need 2x + collateral to secure fiat. Futures you can chose you’re leverage but lowest being 2x which would be .5 collateral going all the way up to 100x or .01 collateral. KYC vs Non. Etc. so it’s not exactly the same product it’s quite different.
Different product indeed, but some of the function is identical.
It's like a car vs a tank. Kind of the same thing, has a lot of the same parts and functions, but kind of isn't the same thing.
