Topic: What is the collateral behind Bitcoin? - page 3. (Read 466 times)
Simply saying, there isn't any collateral offered in Bitcoin. Actually, BTC are not loaned over, it is being traded over internet Crypto-space in exchange of money. You buy bitcoin, you get its values and nothing else. And also there isn't any governing authority to control over it. So no chance of deposit. BTC though, is a hotcake in the market having so many other demanding factors.
No person or group controls Bitcoin because Bitcoin is a decentralized virtual currency. There is no collateral to Bitcoin. Bitcoin's value can increase or decrease depending on the demand.
I think Bitcoin is not like bank related traditional transaction process. It has its own systematic way of business. There are many easiest way to know about bitcoin I guess. You can try on of these.
There is no particular collateral behind bitcoin because it is all about strategy in my opinion. Fiat currency needs collateral because it is well established but people buy and sell bitcoin only to make some money till now.
Collateral is property or other assets that a borrower offers a lender to secure a loan. Bitcoin is not like loan. Moreover it is decentralized in nature. So there is no collateral in bitcoin.
nexo is offering a facility where loan seekers can get loans by keeping by their coins as collateral, this would allow the coin holder to keep their coins as well as get a loan. once the loan is paid the coin will be returned and the coin holder can sell off their coin at the market price.
There is no collateral in bitcoin as a decentralized technology. You can not consider as a loan you can get bitcoin as much you pay for this. You have fully trustworthy when you want invest on it .I think you would be never disappointed on just one thing i can suggest not to fear just go for it
Bitcoin is a disperse technology. No one control this system. You only buy bitcoin through use of your own currency. We have to consider this, this is not fiat currencies.
By 'collateral' I assume you mean 'underlying asset value', and Bitcoin is interesting in that the asset value is virtual, and based on the solution of a complex mathematical calculation. This proof of work requirement prevents indiscrimate creation of Bitcoins, and is in sharp contrast to fiat currencies which have no underlying asset values and no limits on their creation, and are essentially worthless as a result. The asset value of Bitcoin is based on scarcity and demand, and is comparable to gold and silver. Another interesting class of virtual assets is Internet domain names.
Decentralized system is Bitcoin's main characteristics that's why it does not have any collateral. One buys bitcoin at his own risks hoping to get benefited when the price goes up.
There is no second party, and there is no second party when you have bitcoins. You buy bitcoin from someone for intance, after that there is no special guarantee given by someone who sells bitcoin to you and make sure bitcoin you have is safe, bitcoin you have will be profitable. In crypto currency you buy bitcoin, then you who have full rights in watching you will get profit or you will get loss.
What is the collateral behind Bitcoin?Like in case of Fixed deposits Money deposited acts as a collateral.In case of a car loan Car acts as a collateral.Likewise what is collateral behind Bitcoin? BTCBTC
Zero. None. The system does not have collateral - https://en.wikipedia.org/wiki/Collateral_(finance) - because it isn't based on debt.
The Monetary System Visually Explained
- https://youtu.be/aXiNZWJKnVI
The parallel world we are living in is a debt based kleptocracy - https://en.wikipedia.org/wiki/Kleptocracy
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However, if I had to give you a (bad) one word answer I would say 'Math'.
What is the collateral behind Bitcoin?Like in case of Fixed deposits Money deposited acts as a collateral.In case of a car loan Car acts as a collateral.Likewise what is collateral behind Bitcoin? BTCBTC
Think of bitcoin like sort of a digital, better version of gold.
Does gold have any "collateral" per se behind it that gives it intrinsic value? No. However, it's still considered to be a great store of value and hedge against fiat inflation. This is because the supply of gold is decentralized, it can't be manipulated by entities or organisations, and there is a demand for gold as a store of value.
That's how bitcoin derives its value from, in my opinion, and it's the same as gold. Bitcoin isn't representative money - it doesn't have a backing per se, but its supply is limited and hard coded, unlike fiat, making it a good store of value in the long run.
Bitcoin doesn't require any collateral against its investment. As it is an industry where money is invested in favor of the value likewise share market. And again, BTC is generally used for making transactions using a decentralized network, thus it doesn't require collateral. In case you think about taking loans from crypto market, they have their own policies rather collateral.
What is the collateral behind Bitcoin?Like in case of Fixed deposits Money deposited acts as a collateral.In case of a car loan Car acts as a collateral.Likewise what is collateral behind Bitcoin? BTCBTC
I think bitcoin is not that strong enough to be used as a collateral. It depends on the person's faith on bitcoin if he accept it as a collateral.Its our faith that guarantees it.
There is no collateral in bitcoin. It was created as digital currency that has no value at the start. But when people start to have interest on it and make it an investment it slowly rise and become valuable until now. The demand makes bitcoin valuable and through the help of blockchain technology bitcoin continue to flow with anonymity to all people who used it with out any collateral.
A collateral is something pledged as security for repayment of a loan. Simply saying, bitcoin is not a loan. You don't loan a bitcoin, paying it month per month. You get bitcoin equal to the value of your money. Straight up just buying and it's done.
Yeah I agree, bitcoin is not loan that needs collateral, only bank are find collateral before you making a loan. Banking loan are so hard to apply cause there are so many documents they needs and the collateral are need much higher value than your loan and the payment they require is monthly but in bitcoin you never need collateral to start to invest.
There's no collateral behind bitcoin investment and trading since bitcoin is cryptocurrency or virtual currency and used blockchain technology so that there was no definitely collateral that bitcoin imposed. However eventhough bitcoin have no indemnity there are still backing with you in terms of your time spending on crypto world. And also your efforts and hardworks given from bitcoin are still the collateral.
I think bitcoin can not make guarantees to borrow money in the bank, because Bitcoin is virtual money, my hope in the future can someday be for collateral.
Bitcoin is neither issued by government/bank like fiat nor it is a form of credit to us so there is no need of collateral at all.
Bitcoin hold value based on people's trust over it and supply/demand of bitcoin drives the price. With growing demand and limited supply of bitcoin price is moving upwards if we look at long term charts.
Many experts that's why suggest to only invest what you can loss in bitcoin because it can be worthless in future which is quite unlikely scenario but its better not to take risk with all of your money.
In addition to this, bitcoin is only backed by a few lines of code. There's no real collateral. Bitcoin's price is determined by demand and supply and nothing else, just like Gold and other things that aren't made up from thin air.Bitcoin hold value based on people's trust over it and supply/demand of bitcoin drives the price. With growing demand and limited supply of bitcoin price is moving upwards if we look at long term charts.
Many experts that's why suggest to only invest what you can loss in bitcoin because it can be worthless in future which is quite unlikely scenario but its better not to take risk with all of your money.
And why are you comparing a car loan to bitcoin? Makes absolutely no sense. Bitcoin is a currency, and you buy it just like buying any goods/services. Do they necessarily have collateral?
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