Are there any sites/banks that will take BTC as collateral for USD loans? (I'm thinking something like maybe Prosper, but accepting collateral?)
Basically, I've got a significant amount of BTC, but am wanting USD in the short term. With the way the exchange rate has been going, I'm loathe to sell BTC at the risk of having to buy it back at a 50% premium 3 months from now. I'd much rather just use it as collateral for a USD loan ( at a non-loan-shark interest rate ) and pay back the USD.
Siggy
Basically, I've got a significant amount of BTC, but am wanting USD in the short term. With the way the exchange rate has been going, I'm loathe to sell BTC at the risk of having to buy it back at a 50% premium 3 months from now. I'd much rather just use it as collateral for a USD loan ( at a non-loan-shark interest rate ) and pay back the USD.
Siggy
Hmm... This would probably work like a pawn shop transaction. You give the BTC to them, they give 30% of its value, but you still own the BTC. You must then make payments, if you miss a payment by 30 days or so, the BTC is then theirs to be liquidated.
Of course, you must trust them more than they trust you to repay.
100 BTC > $7000 * 30% > $2100 loan + 10% APR Amortized for the duration of the loan.
It could work. Not sure why you would do it tho... Unless you're leveraging with the USD Loan to buy more BTC... You'd have to hope for a 10% rise at least. Doable (lol).
But if there is a fall, you're in some trouble for the 'pawn shop' could sustain a 70% fall and still make money.
I responded here, because of the 'pawn shop' idea. I thought it be interesting to have a Casa Coin 1 oz. Gold Bitcoin 'pawned' at the Pawn Stars. I'm wondering if they'd add value to the gold because of the Bitcoin. If even a few bucks, it'd be good advertising.
You could do it for a variety of reason not just leverage. Maybe you had a DR bill come up unexpectedly and you get paid at the end of the month. Or maybe you have a credit card balance but you think that BTC will grow faster then that rate so you take out a 10% fiat loan secured with BTC to pay off the loan.
To the OP: I am willing to lend you the FIAT, but my asking rate would be that you put up 150% BTC for the loan amount. It can go to escrow such as John. The rate would be 1% up front and 14.9% per annum, calculated daily, and you pay the escrow fees. Maybe not the best deal but PM me if interested, I'm likely in a different country and have exchange fees and such that would need to be passed on as well.
Certainly would be a great idea to have it automated into a site. Would have to be something automated, and 10% a year is a tiny bit light I would think.
