Not in my opinion [and correct me if I'm wrong], but taking a loan out against your home makes sense for several reasons:
1. You still utilize your home once the loan is taken out.
2. Your home is kind of a necessity, you can't quite part with it.
3. Exchanging your home for cash isn't anywhere near as simple or easy as exchanging a crypto for BTC.
All three of those don't apply whatsoever to Crypto collateral.
1. You still utilize your home once the loan is taken out.
2. Your home is kind of a necessity, you can't quite part with it.
3. Exchanging your home for cash isn't anywhere near as simple or easy as exchanging a crypto for BTC.
All three of those don't apply whatsoever to Crypto collateral.
I meant that you're securing a loan with something of equal or greater value. And I think you're ignoring the fact that almost all loans in this forum result in defaults.
I'm not ignoring the fact, I'm just going off of my current experience with loans handled here, that is all.
If the person requesting .5BTC has 20LTC, why doesn't he just exchange the LTC for BTC and not request a loan?
because selling the ltc now @ 20$ each for example would be a stupid decision especially if the ltc goes up in value over the term of the loan.
you would need more money to buy back the same amount or would have to buy back less coins.
Hope this cleared up[ the air a bit.
That makes sense, especially in regards to loans where one is using a newer alt, but not so much in the case of BTC and LTC. If you are getting your loan in BTC, the fluctuation between the exchange rate of BTC/LTC has been rather constant for a long time now. That is not counting the spikes into the .03 zone and the dips into .01 area.
