Replying to Avatar Bertha

As i understand them the margin calls would be relatively frequent. I have not seriously considered them and am no expert. 10 year loans are pretty common in fiat, if that was the margin call timeline I’d be more interested. Still handing over your coins feels pretty risky whatever the terms or legal “protections”.
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Comte de Sats Germain 11mo ago

If we're talking about the same loans - I'm thinking of those home loans secured partially with btc - I don't think that's btc from the buyer's savings, but rather bought by the bank with some of the USD loaned. Still, if its bought with money loaned to the buyer, then at least some of it belongs to the buyer at the end of the loan. Sounds great, tbh I'm interested. But if the bank understands that the btc will accrue value faster than the house, then it has an incentive to get the btc. So, its conceivable that they'll do the same shenanigans they did before 2008, loaning more than borrowers can afford, and taking advantage of them.

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Bertha 11mo ago

Interesting I was referring to self funded loans where you supply the bitcoin. The other format which I think is more in the lenders interest and risk management seems like a better setup. That structure still seems like a no brainer if you’re a lender that can make it happen.