4 ms·

Fair, that’s some benefit. Speed and ease do unlock potential. Can you expand on the second point? If something can’t be liquidated/sold, how can it be collate

• merdadicapra 6y ago
  > Can you expand on the second point? If something can’t be liquidated/sold, how can it be collateral? It means that to ask for 1 you need to already own 1 in the form of different cryptos from the one you are loaning. So basically you are asking for money you already have in the first place. With crypto it makes sense: if I loan you 10 bitcoins and you disappear, those bitcoins are lost forever, so to ask for 10 bitcoins you have to put the countervalue of 10 bitcoins in (for example) ETH and freeze them so they act as collateral. If it sounds ridiculous, it's because it is.