Faucet21 - Get an unsecured personal loan that automatically converts into BTC \ stacker news ~bitcoin

Faucet21 - Get an unsecured personal loan that automatically converts into BTC faucet21.com/

2001 sats \ 13 comments \ @ama 4 Jan 2023 bitcoin

370 sats \ 6 replies \ @NorthKoreanHostage 4 Jan 2023

There's got to be the catch. What am I missing?

10 sats \ 5 replies \ @ama OP 4 Jan 2023

Haven't found one myself, but for sure somebody at SN will find it if there's one.

50 sats \ 4 replies \ @k00b 4 Jan 2023

Seems like layaway for bitcoin. If you don’t pay all installments they keep your money + bitcoin. Unless I’m missing something.

10 sats \ 3 replies \ @felix 4 Jan 2023

Yep, that's the only way they'd be able to provide lower installments than compared to traditional unsecured loans.

10 sats \ 2 replies \ @ama OP 4 Jan 2023

But they say you can withdraw the whole BTC amount either little by little or all at once. Wouldn't that be something different than layaway? Assuming I understand how layaway actually works...

30 sats \ 1 reply \ @felix 4 Jan 2023

Good point.

No idea, honestly. They might still be in the phase of figuring this out. Let's see.

Could also just be "normal" unsecured loans, with the sole difference being that it's marketed towards bitcoiners. Wouldn't surprise me, tbh.

0 sats \ 0 replies \ @ama OP 4 Jan 2023

Thank you. That sounds more plausible to me, but I'm curious. Yeah, let's see...

103 sats \ 1 reply \ @jeff 4 Jan 2023

© Forward Contracts, Inc.

Sounds like a serious name, for a company who has thought this through, imho.

Same company is building this: https://runcaliber.com/

...which claims this as an incoming pricing model.

Fixed lifetime or yearly membership cost, then 0 fee, 0.1% spreads, undercutting Strike's "0 fee", 0.3% spread, and massively undercutting every bitcoin-only exchange that allows moderate or large volume, or Coinbase's "0 fee" 2% spread.

...then there is this from the main site:

inherently short bitcoin on those future receivables.

This is what every insurance company hasn't realized yet. But the operator of this site has clearly reflected on this problem space.

40 sats \ 0 replies \ @Risky 4 Jan 2023

the resource list on https://runcaliber.com/ is quite good as well. Here it is.

https://theofficialbitcoinwebsite.org/

40 sats \ 1 reply \ @ek 4 Jan 2023

They are about to experience the largest short squeeze the world will ever see.

I like this

20 sats \ 0 replies \ @ama OP 4 Jan 2023

Hehe, that's catchy, yes!

0 sats \ 0 replies \ @chungkingexpress 5 Jan 2023

Can I get $250 mil? Asking for Sam.

0 sats \ 0 replies \ @DiracDelta 5 Jan 2023

I was working on this (cool to see it pop up here!), but at this point, it will not be going forward without external funding, which I do not anticipate being able to raise.

There are three models under which it would operate:

Ordinary unsecured loan: you get the bitcoin up-front. Marketing + seamlessness in turning the fiat loan into bitcoin. Marketing alone might not seem like much here, but this could become a default way for people to get into bitcoin and help with unit bias.
We hold the bitcoin: you buy fixed chunks of it at a fixed price over time.
Twice-locked bitcoin: you buy fixed chunks at fixed price over time, but you hold 1 of 2 keys in a 2-of-2 multi-sig so it is impossible for us to rehypothecate.

Preliminary discussions with prospective bank partners indicated it could be done, but we did not get to the details of how we could adjust interest rates based on the different options above.

The other associated businesses I was trying to get going are:

https://runcaliber.com (brokerage) https://twitter.com/runcaliber

https://contracts.runcaliber.com partial non-dollar denomination in (salary) contracts