Show me a bitcoin loan that is for a minimum of a 5 year term, with a low interest rate and a1:1 loan to value ratio based on market price at the time the loan is taken out, with the sats locked up in a 2 of 3 multisig wallet, and MAYBE Iāll consider giving your company the privilege of doing business with me and my sats.
Discussion
A 1:1 ltv is gonna be tough no matter how you shake it.
Bitcoin dips at all and you will have to re-collateralize
Not if the lender understands bitcoin. They shouldnāt be requiring additional collateral based on short term price volatility. Just set penalties for early payoff.
Borrowers go underwater on their traditional loans with banks all the time. If the bank is that risk averse, then can always set tight margin call values, but it really isn't necessary to require such low LTV ratios at origination with such pristine collateral like bitcoin.
Agree. Canāt get my head around the trade thus far
- liquidation risk
- counter party risk
- high interest rates
- short loan duration
Some players definitely better than others
But still hard to grok seriously
Some people love it though
Had founder of FireFish on the podcast recently which was interesting
Weāve got a ways to go for that. Banks still donāt understand the value of bitcoin.
Jack Mallers does though. The loan Strike is offering is shameful.
Canāt give you a loan. But I can ship you high quality seeds for sats š at https://seedvault.market
at this point, the lender should just buy bitcoin instead of lending out money
I donāt disagree. lol
Bitcoin is terrible loan collateral because of volatility many will get margin called or liquidated. Honestly better just going the traditional route if you really need the fiat and wonāt sell the bitty.
Taking out a loan near the bottom of a bear market would be nice, then you only have upside and don't have to worry about being liquidated. All these loan offerings are all pretty sad so far. Bottom of the bear is where the rates should go down to attract bitcoinrrs, but traditional finance has no clue.
Meanwhile BTC. whole life insurance comes close. Low single digit interest rate, 1:1 LTV, loan repayment flexibility., avoids capital gains taxes and you get to pass on bitcoin to your beneficiaries tax free..