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Sounds like a terrible idea given how much bitcoin's value can fluctuate. And they may call the loan. This is if you are really bullish on bitcoin.
by jtchang 6y ago
Sounds like a terrible idea given how much bitcoin's value can fluctuate. And they may call the loan. This is if you are really bullish on bitcoin.
- oleganza 6y agoThey loan up to 30% of the BTC value. So as long as it does not crash more than 70%, everything's fine [1]. [1] Which happened every time after the peak of a big bitcoin run-up ;-)
- hydraxis 6y agoAnd then there will be margin calls and forced sales, which in case of a crash will accentuate the drop considerably...
- rkagerer 6y agoIn the scenario where the market is crashing faster than they can keep up with, do you think they'll put their own sell orders ahead of those of other customers? Could they get in trouble for that?
- ur-whale 6y agoI suspect they've done the math of how much collateral is needed to absorb the assumed future volatility