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2 sats \ 3 replies \ @grayruby 14h \ parent \ on: Strike releases Bitcoin Line of Credit (BLOC) bitcoin videos

That might be the market rate for someone posting actual dollars but if I am paying 13% and they can borrow at 6% why wouldn’t they just borrow (newly created fiat), lend it to me and capture the spread?

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22 sats \ 2 replies \ @Enemy_of_the_state 14h

Where can they borrow at 6%? Maybe if banks start offering loans but I think Strike is juat a maker and 11% is what they have to offer...just my limited understanding though. Not the cheapest source of fiat credit but if you are tapped on the HELOC and other cheaper options...it works great

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2 sats \ 1 reply \ @grayruby 14h

Sorry I am thinking of rates here in Canada. You can borrow secured around 5% and unsecured around 7.5%.

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22 sats \ 0 replies \ @Enemy_of_the_state 13h

from banks right? banks are lending $100 for every $10 of book assets, so they can offer a lower than market rate.

No one that actually had to earn the money would risk it for 5%

True market interest rates are probably 10-13%, if currency is inflating at 8%, the risk premium is 2-5% which seems about right for a low risk loan.

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