It's a collateral-backed loan, like a non-recourse mortgage or a pawn shop. But it's a volatile asset, so they might have to margin-call you, or they could go bankrupt holding your debt note. That's actually a big risk, on their part, especially going into a worldwide recession, which explains the high interest rate.

I think this is the correct page.

https://strike.me/faq/what-are-bitcoin-backed-loans/

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