Not that I would do this yet, but very curious why #Bitcoin backed loans have absurdly high APRs.

It hardly makes it seem like pristine collateral from this perspective. Being so easy to liquidate I'd think 1-2% would be more appropriate. Not 11-16%. Who would ever take that deal? Long term capital gains in the USA is only 15%...

Is it perhaps because banks have been kept out so far? Will it change with regulations allowing bank to custody and offer lending services?

Thought?