I think just more lenders realising the value of BTC as collateral and how easy it is to make loans against it (can do it all online and even without having to know the identity of the debtor or check their credit worthiness). And once they realise this, them looking at how good the returns presently are as a creditor. Right now as a lender you can get 15% p.a. and up for loaning out USD, basically risk free.

Competition between a greater number of lenders should then start bringing those interest rates down to where it's still an attractive return but not as high as presently.

arrivederci

good point in the interest rates hopefully coming down with more adoption. what do you think will make them come down? more big industry adoption, like with all this ETF stuff?

brandonsbytes

bitcoin

would you use your bitcoin as collateral for a loan?


While the bitcoin backed loan market is still relatively immature, interest rates are still quite high. But they should come down as the industry matures because BTC is absolutely the best form of collateral there is (e.g. superior to RE, which is much, much less liquid than BTC).