how do people feel about btc-backed loans? \ stacker news ~bitcoin

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how do people feel about btc-backed loans?

267 sats \ 25 comments \ @stack_harder 14 Sep bitcoin

i was thinking the other day, at some point down the line, btc-backed loans will become a mainstream thing, perhaps a major one if the price goes into the millions (this is not a fiat mindset thing, this is just stating a fact that services and things will develop around it, like it or not).

and then i thought maybe it would be pretty good to take out a loan using the btc as collateral because , if you were going for a larger purchase (like a car , house or maybe a nice holiday for the family) it would be possible to inflate the debt away a bit over time if fiat denominated and also, if you were making larger purchases, you would have to worry about people spying on your blockchains movements and any other data leaks or associations that may come from paying a legacy institution in btc

what do you guys think?

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300 sats \ 4 replies \ @DarthCoin 14 Sep

BTC-backed loans = TOTAL STUPIDITY. You are going back to fiat. We are here to eliminate fiat, not to perpetuate it. FIAT DELENDA EST.

0 sats \ 3 replies \ @stack_harder OP 14 Sep

is holding the harder asset while using fiat to avoid selling off a stack (and incurring cap gains )/ deflating the loan itself not a good idea in your opinion?

0 sats \ 1 reply \ @DarthCoin 14 Sep

Using fiat is for slaves that have no future, forever in debt and in chains. fiat mindset is a disease.

Please watch this short presentation about what really is fiat https://www.youtube.com/watch?v=2nCzzgEwC7s

0 sats \ 0 replies \ @jerrybature 15 Sep

Indeed, "fiat delenda est." This presentation encouraged me to a lot. When it comes to money, bitcoin is the best. Thanks Darth.

0 sats \ 0 replies \ @DarthCoin 14 Sep

#683043

184 sats \ 3 replies \ @k00b 14 Sep

Tons of people do this already, I know a few personally, and it's very common even outside of bitcoin to leverage assets.

0 sats \ 2 replies \ @Fabs 14 Sep

Where?

0 sats \ 1 reply \ @k00b 14 Sep

Many of them were using Unchained when they did consumer loans.

10 sats \ 0 replies \ @Fabs 14 Sep

Ah, I hear about them often, but I still don't totally trust the whole loaning-business as of now.

21 sats \ 0 replies \ @TheWildHustle 14 Sep

Scams and a waste of time, maybe a good product will eventually come out, but until then, they should be avoided like the plague.

21 sats \ 6 replies \ @DesertDave 14 Sep

I used to borrow against my bitcoin and buy more bitcoin with NEXO. I think they have collapsed since then. It was really just leverage trading in disguise. Not a good idea. I imagine this will be happening for a while.

11 sats \ 5 replies \ @Fabs 14 Sep

Nah, still standing.

0 sats \ 4 replies \ @DesertDave 14 Sep

Wow. I'm surprised. I stopped using them when it started to get challenging to pull Bitcoin out to a wallet. Didn't feel good. Do they still let you buy Bitcoin with money borrowed from Bitcoin?

11 sats \ 3 replies \ @stack_harder OP 15 Sep

i used to hodl on nexo and use their credit card for cash back but they shut my account down because i was logging in outside of the UK. don't mind as i went to self storage after that, nexo token hasn't reached it previous ATH, as with many shitcoins

11 sats \ 2 replies \ @Fabs 15 Sep

Yeah, I've never pulled the trigger on it, feared to be caught in some beaurocratic shenanigans or loss of funds a la CELSIUUUSSS!

11 sats \ 1 reply \ @stack_harder OP 15 Sep

i got out just as we had the string of cexs going down and i was shitting it a little bit. i had also read something on reddit by someone who claimed to work at nexo's head office in Sofia and they were saying how the bosses were always throwing lavash parties and driving sports cars etc. very bad vibes and very fiat.

they took like 24 hours to process my btc withdrawal also which was terrifying, but a valuable lesson

43 sats \ 0 replies \ @Fabs 15 Sep

who claimed to work at nexo's head office in Sofia and they were saying how the bosses were always throwing lavash parties and driving sports cars etc.

Wouldn't surprise me, I'm glad I didn't touch it.

0 sats \ 0 replies \ @Satoshi__Nakamoto 15 Sep

Thats true ✅🥺

0 sats \ 0 replies \ @037447d9ca 15 Sep

It's surprising nobody here seems to know about Sovryn

0 sats \ 0 replies \ @random_ 14 Sep

This can't be done with a technology whose sole purpose is disintermediation, unfortunately.

0 sats \ 0 replies \ @SatsMate 14 Sep

I wonder what what the counterparty will do to ones bitcoin if you don't pay the loan?

0 sats \ 0 replies \ @Catcher 14 Sep

Well, it's like you know the game is rigged and you want to outsmart it, but you don't make the rules. It's a very logical thing to do in the inflationary economy, buy everything with credit and inflation will pay your debt. The only problem is you have a risk to part with you btc that backs the loan and end up with millions of worthless paper money. I know there are some multisig loan products, but in case of disputes the 3rd party will most likely take the bank side anyway.

0 sats \ 0 replies \ @grayruby 14 Sep

They are still nascent so interest rates are high on them and reduced trust options are limited.

I had a B2x loan from ledn when we were below 20k. So in this product you post bitcoin as collateral and they buy the same amount of bitcoin for you to double your amount. You must maintain at certain collateral threshold. Maybe 30%, don’t recall exactly. Anyways I took a small one out 0.1BTC as collateral and got 0.1BTC. It worked out well as I closed it out around 30k and the issue price was sub 20k so after interest and principal repayment I got almost 1.5BTC back.

I closed it out early because I was concerned about Ledn when they bought a shitcoin fund in Canada. I didn’t want to take a chance they would start don’t some FTX crap with my bitcoin and I would get screwed.

0 sats \ 0 replies \ @Fabs 14 Sep

Frickin' awesome.

0 sats \ 0 replies \ @mark0st 14 Sep

So far people loan against their bitcoin. This trend will increase