Hi Niko, if you are the borrower, ideally you want to keep possession of the BTC! However, there are lenders who understand the value proposition of BTC and require shared custody and a share of the increase in fiat value after loan end.
Question nostr:npub1v5k43t905yz6lpr4crlgq2d99e7ahsehk27eex9mz7s3rhzvmesqum8rd9 - When you hypothetically lend say $100k to a business / developer and require 10% be allocated to Bitcoin for default protection, who gets the Bitcoin (at the appreciated value) at the end of the term loan assuming there’s no default? The lender, or the borrower? I could see a situation where the Bitcoin is almost 30-50% of the value of the loan in a few years. Appreciate your insights here.
Discussion
Thanks for the response, Liam! That makes sense! I’m exploring being a lender using this strategy for both property and business loans. I like the idea of a shared custody model as well requiring a share of the increased value in fiat for the BTC. Still exploring…