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This is typical of DeFi people. "Technically correct is the best kind of correct." Your collateral would be other crypto. So it would: - Be worth more than th
by ogogmad 4y ago
This is typical of DeFi people. "Technically correct is the best kind of correct."
Your collateral would be other crypto. So it would:
- Be worth more than the house.
- Be completely virtual, so you can't use it to do anything in the real world.
- Be fairly liquid, as if it were already money.
- Be as difficult to obtain in the first place as the cash needed to buy a house without a loan. [EDIT: More difficult because of over-collateralisation!]
- pcthrowaway 4y ago> Be completely virtual Isn't all money completely virtual? Yes, of course there are physical notes, but those just represent the money
- execveat 4y agoIn physical world a collateral can be a car or house. In that case you continue using them while paying out the loan. In crypto world "loan" is a pretty pointless construct useful only for attracting clueless investors.