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So the party keeps going as long as there is enough of willing buyers to buy at these levels. I wonder when the situation reverses and there is more sellers tha
by tekkk 6y ago
So the party keeps going as long as there is enough of willing buyers to buy at these levels. I wonder when the situation reverses and there is more sellers than buyers.
Here's another thing I have thought about. I recall reading that if you have money deposited at the bank, they borrow that money forward to others. So in fact the bank is lending more money than it actually "owns" money. For bitcoin or cryptos, this value is pretty inert and unutilized or do people use it as collateral for loans?
- christophilus 6y agoYou can’t use it as collateral in traditional bank loans, unless you hold it through a proxy like an ETF or Microstrategy. BlockFI and a few places like it allow you to borrow against it. That’s how BlockFI provides its high yield to depositors.
- hanniabu 6y agoFidelity will take bitcoins as collateral for traditional loans.
- TigeriusKirk 6y agoThere's the world of DeFi (decentralized finance). Probably not what you had in mind, but it's people doing all sort of things to leverage their crypto to make more money, all within the crypto system. To my mind it's a house of cards, and I'm generally very pro-crypto. But it's out there and billions of dollars are moving through it. https://www.coindesk.com/what-is-defi https://www.coindesk.com/what-is-defi
- frakkingcylons 6y agoCoinbase will loan you USD at 8% APR using your Bitcoin as collateral.