How are altcoins collateral - page 2.

fildza

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Quote from: pawel7777 on March 04, 2015, 12:29:05 PM

Quote from: Bardman on March 04, 2015, 12:24:12 PM

Wait, what you are saying is that someone wants a loan of btc to buy ltc giving his already owned ltc because he believes ltc price will go up? Seems pretty stupid to me

Scenario:

You have 100 LTC and no other funds available

You know for sure that LTC price will go up within 1 week.

What do you do?

But usually we always see people ask for small loan about few 0.05-0-5 btc and I not see people want ask for loan and use altcoin as collateral for expect the price will go up

pawel7777

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Quote from: Bardman on March 04, 2015, 01:38:12 PM

Quote from: pawel7777 on March 04, 2015, 12:29:05 PM

Quote from: Bardman on March 04, 2015, 12:24:12 PM

Wait, what you are saying is that someone wants a loan of btc to buy ltc giving his already owned ltc because he believes ltc price will go up? Seems pretty stupid to me

Scenario:

You have 100 LTC and no other funds available

You know for sure that LTC price will go up within 1 week.

What do you do?

Wait for it to go up? You cant know it for sure so it would be really risky to get a loan. Lets say 100 ltc = 1 btc
So you will get a loan of 1 btc using your 100 ltc as collateral, you will need to pay at least like a 5% of interests so thats 1.05 btc back, the ltc price would have to go up by a lot to compensate all the trouble and the fees so not a really good idea

All true, but this is not a question of whether it's a smart move or not and what's the probability of the price going up.

Providing you know/believe/willing to gamble on price going up (higher than loan interest and related costs), then it makes perfect sense to take such loan. If all works as planned, you'll gain much more than just by holding and selling those 100 LTC alone.

Bardman

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Quote from: pawel7777 on March 04, 2015, 12:29:05 PM

Quote from: Bardman on March 04, 2015, 12:24:12 PM

Wait, what you are saying is that someone wants a loan of btc to buy ltc giving his already owned ltc because he believes ltc price will go up? Seems pretty stupid to me

Scenario:

You have 100 LTC and no other funds available

You know for sure that LTC price will go up within 1 week.

What do you do?

Wait for it to go up? You cant know it for sure so it would be really risky to get a loan. Lets say 100 ltc = 1 btc
So you will get a loan of 1 btc using your 100 ltc as collateral, you will need to pay at least like a 5% of interests so thats 1.05 btc back, the ltc price would have to go up by a lot to compensate all the trouble and the fees so not a really good idea

pawel7777

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Quote from: Bardman on March 04, 2015, 12:24:12 PM

Wait, what you are saying is that someone wants a loan of btc to buy ltc giving his already owned ltc because he believes ltc price will go up? Seems pretty stupid to me

Scenario:

You have 100 LTC and no other funds available

You know for sure that LTC price will go up within 1 week.

What do you do?

Bardman

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Quote from: pawel7777 on March 04, 2015, 11:32:13 AM

Quote from: XinXan on February 27, 2015, 03:40:52 PM

Quote from: DeathAndTaxes on February 27, 2015, 03:39:16 PM

If someone believes the LTC/BTC exchange rate will increase then they would take that loan.

No, what im saying is that if you already have the amount of money you need in altcoins what would be the point of asking for a loan

The only scenario such collateral makes sense is what DAT said.

Imagine you have 100 LTC and you're absolutely sure that LTC price (expressed in bitcoins) will go up, so obviously you want to buy more of them. Selling 100 LTC to buy 100 LTC doesn't make any sense. So it's best to borrow bitcoins (using LTC as collateral), buy more litecoins. When (if) the price goes up, sell LTC, repay the debt and enjoy the profit (+ sell those 100 LTC you got back if you want to).

Simple.

Wait, what you are saying is that someone wants a loan of btc to buy ltc giving his already owned ltc because he believes ltc price will go up? Seems pretty stupid to me

pawel7777

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Quote from: XinXan on February 27, 2015, 03:40:52 PM

Quote from: DeathAndTaxes on February 27, 2015, 03:39:16 PM

If someone believes the LTC/BTC exchange rate will increase then they would take that loan.

No, what im saying is that if you already have the amount of money you need in altcoins what would be the point of asking for a loan

The only scenario such collateral makes sense is what DAT said.

Imagine you have 100 LTC and you're absolutely sure that LTC price (expressed in bitcoins) will go up, so obviously you want to buy more of them. Selling 100 LTC to buy 100 LTC doesn't make any sense. So it's best to borrow bitcoins (using LTC as collateral), buy more litecoins. When (if) the price goes up, sell LTC, repay the debt and enjoy the profit (+ sell those 100 LTC you got back if you want to).

Simple.

Equinoxx

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Quote from: fildza on March 04, 2015, 10:15:30 AM

Quote from: Bardman on March 04, 2015, 07:44:11 AM

Quote from: fildza on March 04, 2015, 07:34:37 AM

Quote from: Bardman on March 02, 2015, 04:27:37 PM

Quote from: hilariousetc on March 02, 2015, 03:50:56 PM

Most people won't give loans out to people who are suspected of going to gamble with it and quite rightly as you're almost certain to lose it, though I don't doubt some people take loans out under a different story and then gamble with it anyway.

I actually saw some that said they were going to gamble the loan and still received it, with collateral but still why would anyone loan money to a gambling addict

You just said with collateral. So what the problem if he want gamble ? He have collateral

Well i dont know, moral reasons? Like why would you help a gambling addict to gamble?

Well, if he honest want to use the loan for gamble even have collateral of course I will not give but not many people honest today

That's the sad part. And the only way to seem trustworthy is by having a good title below your username Sad

fildza

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Quote from: Bardman on March 04, 2015, 07:44:11 AM

Quote from: fildza on March 04, 2015, 07:34:37 AM

Quote from: Bardman on March 02, 2015, 04:27:37 PM

Quote from: hilariousetc on March 02, 2015, 03:50:56 PM

Most people won't give loans out to people who are suspected of going to gamble with it and quite rightly as you're almost certain to lose it, though I don't doubt some people take loans out under a different story and then gamble with it anyway.

I actually saw some that said they were going to gamble the loan and still received it, with collateral but still why would anyone loan money to a gambling addict

You just said with collateral. So what the problem if he want gamble ? He have collateral

Well i dont know, moral reasons? Like why would you help a gambling addict to gamble?

Well, if he honest want to use the loan for gamble even have collateral of course I will not give but not many people honest today

Equinoxx

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You can use an exchange to convert the altcoin into Bitcoin / any other cyrpto currencies.
Someone can do whatever they want with their loan, even if they don't pay you back. That is why they have a collateral Wink

Bardman

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Quote from: fildza on March 04, 2015, 07:34:37 AM

Quote from: Bardman on March 02, 2015, 04:27:37 PM

Quote from: hilariousetc on March 02, 2015, 03:50:56 PM

Most people won't give loans out to people who are suspected of going to gamble with it and quite rightly as you're almost certain to lose it, though I don't doubt some people take loans out under a different story and then gamble with it anyway.

I actually saw some that said they were going to gamble the loan and still received it, with collateral but still why would anyone loan money to a gambling addict

You just said with collateral. So what the problem if he want gamble ? He have collateral

Well i dont know, moral reasons? Like why would you help a gambling addict to gamble?

fildza

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Quote from: Bardman on March 02, 2015, 04:27:37 PM

Quote from: hilariousetc on March 02, 2015, 03:50:56 PM

Most people won't give loans out to people who are suspected of going to gamble with it and quite rightly as you're almost certain to lose it, though I don't doubt some people take loans out under a different story and then gamble with it anyway.

I actually saw some that said they were going to gamble the loan and still received it, with collateral but still why would anyone loan money to a gambling addict

You just said with collateral. So what the problem if he want gamble ? He have collateral

Quickseller

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Quote from: Bardman on March 02, 2015, 04:59:16 PM

Quote from: Quickseller on March 02, 2015, 04:50:52 PM

Quote from: hilariousetc on March 02, 2015, 03:50:56 PM

Most people won't give loans out to people who are suspected of going to gamble with it and quite rightly as you're almost certain to lose it, though I don't doubt some people take loans out under a different story and then gamble with it anyway.

Most smaller loans (less the .1 or so) are almost certainly going to be for gambling, (what else could they be for?) I don't think lenders particularly care though as long as they are sufficiently protected with collateral.

Yes. But those who gamble are obviously never gonna use altcoins as collateral

They would if they both want to gamble on Prime dice (for example) but also have CLAIMS (for example) and think they will increase in value over the corse of the loan

Bardman

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Quote from: Quickseller on March 02, 2015, 04:50:52 PM

Quote from: hilariousetc on March 02, 2015, 03:50:56 PM

Most people won't give loans out to people who are suspected of going to gamble with it and quite rightly as you're almost certain to lose it, though I don't doubt some people take loans out under a different story and then gamble with it anyway.

Most smaller loans (less the .1 or so) are almost certainly going to be for gambling, (what else could they be for?) I don't think lenders particularly care though as long as they are sufficiently protected with collateral.

Yes. But those who gamble are obviously never gonna use altcoins as collateral

Quickseller

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Quote from: hilariousetc on March 02, 2015, 03:50:56 PM

Most people won't give loans out to people who are suspected of going to gamble with it and quite rightly as you're almost certain to lose it, though I don't doubt some people take loans out under a different story and then gamble with it anyway.

Most smaller loans (less the .1 or so) are almost certainly going to be for gambling, (what else could they be for?) I don't think lenders particularly care though as long as they are sufficiently protected with collateral.

Bardman

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Quote from: hilariousetc on March 02, 2015, 03:50:56 PM

Most people won't give loans out to people who are suspected of going to gamble with it and quite rightly as you're almost certain to lose it, though I don't doubt some people take loans out under a different story and then gamble with it anyway.

I actually saw some that said they were going to gamble the loan and still received it, with collateral but still why would anyone loan money to a gambling addict

hilariousetc

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Join the world-leading crypto sportsbook NOW!

Most people won't give loans out to people who are suspected of going to gamble with it and quite rightly as you're almost certain to lose it, though I don't doubt some people take loans out under a different story and then gamble with it anyway.

XinXan

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Quote from: Pugsly on March 02, 2015, 05:40:49 AM

Quote from: XinXan on February 27, 2015, 03:36:55 PM

I never understood how would anyone use an altcoin for collateral, i mean if you want 1 btc loan but you have like 100 ltc, why not sell the ltc yourself instead of asking for the loan?

I've never really understood that either. Using money to get a loan of other money seems pointless. I think most people who take out loans here do so just for the feedback though so that's one reason. Using your account as collateral seems like a better option though sometimes people need the accounts to actually earn the money back.

Well i think 80% of people here that ask for loans are either scammers or not serious people. Ive seen a lot asking for loans to gamble, like wtf is that. When you ask for a loan in real life is to do something of value with it not gamble...

Pugsly

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Quote from: XinXan on February 27, 2015, 03:36:55 PM

I never understood how would anyone use an altcoin for collateral, i mean if you want 1 btc loan but you have like 100 ltc, why not sell the ltc yourself instead of asking for the loan?

I've never really understood that either. Using money to get a loan of other money seems pointless. I think most people who take out loans here do so just for the feedback though so that's one reason. Using your account as collateral seems like a better option though sometimes people need the accounts to actually earn the money back.

Bardman

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Quote from: Icardi09 on March 02, 2015, 01:16:50 AM

Other than LTC and DRK, what's altcoin did use for collateral? I personally wouldn't accept altcoin as collateral, since hold that alts is very risky. Altcoin price changes every time and crash occasionally.

Dogecoins i think are accepted aswell, namecoin, novacoin. Pretty much the ''stable'' ones

Icardi09

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Other than LTC and DRK, what's altcoin did use for collateral? I personally wouldn't accept altcoin as collateral, since hold that alts is very risky. Altcoin price changes every time and crash occasionally.

Topic: How are altcoins collateral - page 2. (Read 5305 times)