Topic: Why people give altcoins as collateral? - page 2. (Read 2030 times)
Probably because the loanee was HODLing that specific altcoin hoping for a price pump in the future and he doesn't want to exchange it for bitcoins. That's exactly the reason before when a Facebook friend borrowed some bitcoin from me and he offered his doges as a collateral. Good thing he repaid on time.
It is same like you giving your house as collateral for some bank loans in real life. Altcoins are also type of assets so if you have other source of income and after some time you will have more than loan amount than why to sell assets if you can easily get loan.
because they don't want to actually exchange them to btc, they only want to have those btc if they need soemthign urgent, but they still want to keep their alt, for the future in case the price skyrocket
practically they want to keep both, but they do not have one, so they use the other as a collateral for the moment they need it
practically they want to keep both, but they do not have one, so they use the other as a collateral for the moment they need it
Altcoins could be considered as collateral because, even if borrowers could trade them to btc, they could keep altcoins for speculation purpose, hoping the value of altcoin raise significantely in a near future or on a long-term period. I believe that can explain why altcoins are valid collateral.
Hi,
As newbie on this forum i ask myself the question why give people loans with altcoins as collateral? If they trade their altcoins in BTC. Their problem would be solved, cause they have their bitcoins. Can one explain this please, thanks?
As newbie on this forum i ask myself the question why give people loans with altcoins as collateral? If they trade their altcoins in BTC. Their problem would be solved, cause they have their bitcoins. Can one explain this please, thanks?
Read the sticky thread: https://bitcointalksearch.org/topic/edu-the-rule-of-no-collateral-no-loan-ignore-at-your-own-risk-577765
maybe because exchange fee
Hi,
As newbie on this forum i ask myself the question why give people loans with altcoins as collateral? If they trade their altcoins in BTC. Their problem would be solved, cause they have their bitcoins. Can one explain this please, thanks?
As newbie on this forum i ask myself the question why give people loans with altcoins as collateral? If they trade their altcoins in BTC. Their problem would be solved, cause they have their bitcoins. Can one explain this please, thanks?
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