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Lending cryptocurrency as a business model seems like absolute nonsense to be honest. My entire understanding is that the bitcoin model isn't compatible with i
by photochemsyn 5y ago
Lending cryptocurrency as a business model seems like absolute nonsense to be honest. My entire understanding is that the bitcoin model isn't compatible with investment capitalism, nor is it compatible with high-volume low-value transactions (i.e. buying food at grocery stores). It's only real purpose is as an independent store of value, for example you might convert $US 10K to Bitcoin and then just sit on it, not really expecting it to decline or increase in value in terms of actual goods/services purchasing power. Not that I know all that much about it, just what I've seen so far.
- matheusmoreira 5y agoLending is a fundamental operation in futures markets. It allows you to establish positions worth many times your collateral.
- sakopov 5y agoCrypto loans are generally cheaper than traditional personal loans and credit cards and obviously require no credit checks. That to me is where it all stops. The volatility makes borrowing crazy scary to me. Getting margin-called when the market tanks and having a couple of days to prop up your original collateral is not for the faint of heart. With that said, this doesn't seem to deter some. I know some folks who borrowed against their crypto to fund certain investments with recurring revenue which end up paying for the loan.