Yeah but this type of credit takes advantage of those people. You have zero down side protection. If bitcoin crashes because iBIT ETF dumps 50% of its coins then boom you are toast 

BlokchainB

I think your reasoning is fine, but you're lacking the awareness that there's _a lot_ of people that don't have access to credit with such conditions.

pillar

econ

How to Borrow Against Your Bitcoin, or: Overcollateralized Loans are Inefficient

denlillaapan

My main problem with this model is the APRs are terrible. People don’t care if the loan is collateralized or not. People want the best rates.

Businesses like these have a failing business model in a fiat world. This dude could of gotten a 0% loan from a credit card company and paid a 4% flat fee on the loan origination amount. With a 12-18 grace period. And put up zero capital. 

I’m sorry but people who have easy access to credit will never use these products until the rates are competitive with fiat options.