Good Collateral | Bitcointalksearch.org

roslinpl

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Quote from: byt411 on April 02, 2014, 12:52:57 PM

Quote from: ThEmporium on March 23, 2014, 07:35:32 PM

Well even tough they sound great , if I have them and I need coins quick , wouldn't I just turn them into Bitcoins?

No.
For example, 1 LTC right now is worth 0.02 BTC (Example)
You send it to a guy and he sends you the BTC back.
After a month, you repay the loan with 0.022 BTC.
He sends you the LTC back, which is now worth 0.05.
= Able to use the bitcoins for what you needed it for, and + 0.028 BTC.

True - and I must say there were cases where collateral after a month was worth less - like 50% less - then if someone will not repay his collateral might be not enough..

that's why good collateral is LTC. Price is quite stable.

byt411

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Quote from: ThEmporium on March 23, 2014, 07:35:32 PM

Well even tough they sound great , if I have them and I need coins quick , wouldn't I just turn them into Bitcoins?

No.
For example, 1 LTC right now is worth 0.02 BTC (Example)
You send it to a guy and he sends you the BTC back.
After a month, you repay the loan with 0.022 BTC.
He sends you the LTC back, which is now worth 0.05.
= Able to use the bitcoins for what you needed it for, and + 0.028 BTC.

FanEagle

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Other than girls..think art your phone thats a collateral too

roslinpl

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Quote from: BigBoy89 on March 24, 2014, 05:34:28 AM

Quote from: roslinpl on March 23, 2014, 07:39:05 PM

Quote from: ThEmporium on March 23, 2014, 07:19:15 PM

What are some good collaterals? Can I have some examples?

Altcoins.
Cars.
Jewlery
Girls.

LOL

any example for collateral anymore?

I hope my gf is not reading bitcointalk to check what I am posting here Tongue

I have another great examples in my mind, but perhaps not all of us are after a breakfast so I will keep them for later

Light

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Circa 2010

You wouldn't turn them into BTC for the same reason your wouldn't sell your house to pay your monthly electricity bill. If it is necessary for you to keep ownership of them or you believe the collaterals value will increase relative to your cost now then you may go for a loan using that object as collateral so you can still pay your bill without having to sell your house.

Nearly anything can be used as collateral provided it is agreed upon by both parties. In general, most people use altcoins (low shipping costs - easy selling) but you can ship physical goods to an escrow.

smooth

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Quote from: ThEmporium on March 23, 2014, 07:35:32 PM

Well even tough they sound great , if I have them and I need coins quick , wouldn't I just turn them into Bitcoins?

Not the same thing. You have LTC presumably because you think it is a good investment (going to go up). If you turn it into bitcoins (perhaps because you want to buy mining hardware) you are giving up your position in LTC. If you borrow against your LTC you can keep your position and still buy the miner.

BigBoy89

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Quote from: roslinpl on March 23, 2014, 07:39:05 PM

Quote from: ThEmporium on March 23, 2014, 07:19:15 PM

What are some good collaterals? Can I have some examples?

Altcoins.
Cars.
Jewlery
Girls.

LOL

any example for collateral anymore?

roslinpl

legendary

Activity: 2212

Merit: 1199

Quote from: ThEmporium on March 23, 2014, 07:19:15 PM

What are some good collaterals? Can I have some examples?

Altcoins.
Cars.
Jewlery
Girls.

ThEmporium

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Well even tough they sound great , if I have them and I need coins quick , wouldn't I just turn them into Bitcoins?

Crypto.Conyo

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LTC, GHS

ThEmporium

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What are some good collaterals? Can I have some examples?

Topic: Good Collateral (Read 790 times)