Would you dare to pawn your bitcoin?

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It depends if the pawnshop accepts the use of bitcoin because some of the countries does not support or even implement the adaptation of the Bitcoin itself, if that so they still support I can use my bitcoin for deposit but in that case scenario for emergency only imagine you sell your bitcoin for a smaller price and we know how does the market volatility of the bitcoin works at the end of the day for me its a lose case scneratio for the long term goal.

Quote from: AmoreJaz on July 07, 2023, 06:36:36 PM

Quote from: bitgolden on July 06, 2023, 10:51:39 AM

Quote from: gunhell16 on July 06, 2023, 03:00:49 AM

I don't think anyone would do something like that to pawn Bitcoin in a pawnshop, if you are the type of person who believes that Bitcoin will be worth 100k$ each, it would be a stupid thing to do to pawn it in reality.

Maybe someone will make a Bitcoin mortgage at the pawnshop and if the pawnshop agrees, this person probably does not have enough deep knowledge about Bitcoin, this is the only reason I can see.

I am not entirely sure if even pawnshops accept bitcoin to be fair. It's like going to a pawnshop and giving 100 dollars and asking 50 dollars back in exchange and hoping that you would do better in the future. If you are willing to part ways with your bitcoin then smart thing to do would be selling it, there is literally no difference in that at all.

People pawn their items because items are not currency, it's not easy to move it around, it's not easy to sell them, you can't really sell your items that easily, it would be quite tough. So, what could you do? You would be able to actually make a big deal out of it by just pawning your items and getting them back with hopes that it won't be sold until you get back, but currency could be used everywhere anyway and bitcoin is a currency.

that is true, there's no need to pawn your btc. just sell it and buy when you have the funds. why make your life so complicated with these things. this is why i don't like many crypto lending apps, they will ask for collateral and then you still need to pay for the interest. so why not sell directly your crypto? think of the trouble that you're going into if you will use these lending apps. at least, you don't owe anyone as you are using your own funds.

If the price of the bitcoin will goes in an uptrend market and you make a collateral with your bitcoin lose at your end that selling partial of the bitcoin so the profit cames from the price movement can be use as payment.

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Quote from: bitgolden on July 06, 2023, 10:51:39 AM

Quote from: gunhell16 on July 06, 2023, 03:00:49 AM

I don't think anyone would do something like that to pawn Bitcoin in a pawnshop, if you are the type of person who believes that Bitcoin will be worth 100k$ each, it would be a stupid thing to do to pawn it in reality.

Maybe someone will make a Bitcoin mortgage at the pawnshop and if the pawnshop agrees, this person probably does not have enough deep knowledge about Bitcoin, this is the only reason I can see.

I am not entirely sure if even pawnshops accept bitcoin to be fair. It's like going to a pawnshop and giving 100 dollars and asking 50 dollars back in exchange and hoping that you would do better in the future. If you are willing to part ways with your bitcoin then smart thing to do would be selling it, there is literally no difference in that at all.

People pawn their items because items are not currency, it's not easy to move it around, it's not easy to sell them, you can't really sell your items that easily, it would be quite tough. So, what could you do? You would be able to actually make a big deal out of it by just pawning your items and getting them back with hopes that it won't be sold until you get back, but currency could be used everywhere anyway and bitcoin is a currency.

that is true, there's no need to pawn your btc. just sell it and buy when you have the funds. why make your life so complicated with these things. this is why i don't like many crypto lending apps, they will ask for collateral and then you still need to pay for the interest. so why not sell directly your crypto? think of the trouble that you're going into if you will use these lending apps. at least, you don't owe anyone as you are using your own funds.

m2017

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Quote from: davis196 on June 29, 2023, 12:43:42 AM

Quote

Now let's move on to the question posed in the topic title.
- Would you approve of the possibility of leaving crypto as a deposit in a pawnshop?
- Has such a service not yet appeared in your country of residence?
- How do you feel about the emergence of such new trends in the service sector?

I think that this service in a pawnshop will not be possible without the KYC procedure, which few will like.

I don't mind the pawnshops accepting crypto as a collateral, but what happens if the crypto prices drop severely?

Not yet known. I suppose that everything will depend on the agreements / contract between the pawnshop and the client. Most likely, such conditions will be approximately the same in all pawnshops. So to speak, will become standard.

Quote from: davis196 on June 29, 2023, 12:43:42 AM

Will the pawnshop sell the crypto and liquidate the loan when the borrower doesn't want this to happen? I think that the answer is yes.

If this is prohibited in the contract, then it is unlikely that the pawnshop will be able to do this. But probably, the pawnshop will not prescribe this in the conditions in order to leave additional opportunities for themselves.

Quote from: davis196 on June 29, 2023, 12:43:42 AM

Who can guarantee that the pawnshop owners won't find a way to scam their customers?

Of course, no one. Pawnshops have always acted in their own interests, and the case of cryptocurrencies is no exception. But if there is a demand (in the specified article), then for their customers this is also necessary or, at least, is a necessity.

Quote from: davis196 on June 29, 2023, 12:43:42 AM

Also the KYC procedure would make this service undesirable for most borrowers.

Did KYC push the user away from using exchangers? I'm sure pawnshops will find their customers even with KYC.

Quote from: davis196 on June 29, 2023, 12:43:42 AM

The most important question is, why would anyone want to get a loan from a pawnshop when he(or she) has enough crypto?

What if it's not enough?
In general, I have no idea who might be interested in this, but I proceed from the information from the article, which means that someone still needs it.

Quote from: davis196 on June 29, 2023, 12:43:42 AM

Why not just sell the crypto for fiat?

I don't know the answer, because I'm probably not a pawnshop customer.

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Quote from: gunhell16 on July 06, 2023, 03:00:49 AM

I don't think anyone would do something like that to pawn Bitcoin in a pawnshop, if you are the type of person who believes that Bitcoin will be worth 100k$ each, it would be a stupid thing to do to pawn it in reality.

Maybe someone will make a Bitcoin mortgage at the pawnshop and if the pawnshop agrees, this person probably does not have enough deep knowledge about Bitcoin, this is the only reason I can see.

I am not entirely sure if even pawnshops accept bitcoin to be fair. It's like going to a pawnshop and giving 100 dollars and asking 50 dollars back in exchange and hoping that you would do better in the future. If you are willing to part ways with your bitcoin then smart thing to do would be selling it, there is literally no difference in that at all.

People pawn their items because items are not currency, it's not easy to move it around, it's not easy to sell them, you can't really sell your items that easily, it would be quite tough. So, what could you do? You would be able to actually make a big deal out of it by just pawning your items and getting them back with hopes that it won't be sold until you get back, but currency could be used everywhere anyway and bitcoin is a currency.

gunhell16

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I don't think anyone would do something like that to pawn Bitcoin in a pawnshop, if you are the type of person who believes that Bitcoin will be worth 100k$ each, it would be a stupid thing to do to pawn it in reality.

Maybe someone will make a Bitcoin mortgage at the pawnshop and if the pawnshop agrees, this person probably does not have enough deep knowledge about Bitcoin, this is the only reason I can see.

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Quote from: Don Pedro Dinero on June 29, 2023, 10:36:04 PM

Quote from: Reatim on June 29, 2023, 10:24:21 PM

But like what I've said above , now I will consider what Dave says and yes never that I will pawn my precious bitcoin , I would rather borrow from all sorts that letting others have control and hold my Bitcoin.

I remember those threads that using their Bitcoin as collateral and in the end , they regret that action and I don't wanna be one , I will keep hold my coins no matter what Happen , I would rather pawn my house or car than pawning my Coin ..

Same here.

If I needed money I would prefer to sell things, but even in the hypothetical situation where I only had the possibility to pawn, I would pawn anything rather than bitcoin. There is an essential difference. You can't easily take a house with you on a plane thousands of miles away, or send it to someone easily. With bitcoin you can, and that's why I think it's essential to keep the keys.

exactly !! i have extra motor and a small lot that I can sell or pawn if time comes of emergency and I believe that is enough to cover what I needed and my family than Pawning my precious coin that I have been struggling to accumulate for how many years now and only others will benefits?
specially now that we are nearing bull years?

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Quote from: Don Pedro Dinero on June 29, 2023, 10:36:04 PM

Quote from: Reatim on June 29, 2023, 10:24:21 PM

But like what I've said above , now I will consider what Dave says and yes never that I will pawn my precious bitcoin , I would rather borrow from all sorts that letting others have control and hold my Bitcoin.

I remember those threads that using their Bitcoin as collateral and in the end , they regret that action and I don't wanna be one , I will keep hold my coins no matter what Happen , I would rather pawn my house or car than pawning my Coin ..

Same here.

If I needed money I would prefer to sell things, but even in the hypothetical situation where I only had the possibility to pawn, I would pawn anything rather than bitcoin. There is an essential difference. You can't easily take a house with you on a plane thousands of miles away, or send it to someone easily. With bitcoin you can, and that's why I think it's essential to keep the keys.

Makes sense, and also to prevent things that are not desirable. And if we really like our old bitcoins with minimal hurdles I don't think we need to pawn them or store them on any platform just to get something, and there are lots of other ways to cover what we really need even for emergencies.
I believe everyone has valuable items such as houses, cars or other expensive items that I think makes more sense to pawn to get what one wants. And if you have a lot of bitcoins, you can also sell some bitcoins according to your needs and this will be safer because you don't have to think about installment fees. And you can also buy back bitcoins when you have a lot of money, it's that simple.

FrozenBit

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I dare to do it, but it seems like it is similar to crypto-mortgage in terms of defi or cex environment in the crypto market, actually I have not seen anyone outside of life mortgage assets Regarding crypto, there are many reasons as to the safety of these deals they can really assure us, at what level of credibility they are.
Even as I remember in this environment Defi has also witnessed many different hacks and the damage is also very large, but this is also a way for us to improve it more secure, because the mortgage of my property thinking is a great thing that helps us take advantage of more opportunities.

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Instead of using bitcoin as collateral when taking out a loan, I would probably choose the second option, which is to sell them within my required budget. Price volatility is a problem and this will certainly affect the agreement between the pawnshop and the collateral owner, and to avoid problems I tend to choose another option.

Quote from: worle1bm on July 02, 2023, 10:46:23 AM

So is it different from giving someone your coins as a deposit?

I don't really see the point of your question, but it might be different because deposito and collateral are completely different.

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So is it different from giving someone your coins as a deposit? I found it similar to holding it on some exchange so for me I would never trust these pawnshops for these matters.Apart from it when you are physically dealing with someone regarding these cryptos it includes risk factors also as what if they tell someone about it who can do something to take access for it so for me it doesn't work a lot.

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Quote from: BenCodie on June 27, 2023, 04:43:19 PM

Okay...but at what pawn shop does liquidation even occur? If a borrower pawns $10,000 worth of Bitcoin (let's say rate is $100,000 for argument sake, so, 0.1 BTC) for $6,000 cash, then the price tanks by 60℅, the borrower doesn't get "liquidated" they still need to pay the $6,000 back plus interest to get their 0.1 BTC back. Which, if they truly don't believe in Bitcoin at that point' they can abandon the loan for a $2,000 profit at this point.

Doesn't work like that!
First, nobody is going to wait for 100% liquidation, most of them will do it at 110% to avoid a flash crash making them go in red.

Second, you've made a mistake, there is no profit.
You sent to those guys things worth $10k, you got $6000, so you've lost $4000. It doesn't matter what the price was going to be fast forward in time, at the moment when you took the loan you deposited coins worth 10k and you ended up with a loan of 6k, so, it's a 4k loss, not a 2k profit.
You could have simply sold those and you wouldn't have any problem.

Quote from: Don Pedro Dinero on June 29, 2023, 10:36:04 PM

Quote from: Reatim on June 29, 2023, 10:24:21 PM

I remember those threads that using their Bitcoin as collateral and in the end , they regret that action and I don't wanna be one , I will keep hold my coins no matter what Happen , I would rather pawn my house or car than pawning my Coin ..

Same here.
If I needed money I would prefer to sell things, but even in the hypothetical situation where I only had the possibility to pawn, I would pawn anything rather than bitcoin.

Or, or...outrageous idea Grin

take a loan from a bank!

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Quote from: BRINIRHA on June 29, 2023, 10:42:22 PM

I really wouldn't trust any platform to store my bitcoins. even if it's a pawn shop. Because it's a bit like storing bitcoins on a centralized Exchange. But for someone who has certain interests will probably do it. but I personally prefer to avoid it. And in my country there is no such thing. at least that I know. but I don't know if it already exists and I missed it.
But if in my country things like pawning Bitcoin start to open. then maybe there will be a number of people who pawn their bitcoins. and I think the person who did this must be in a desperate situation.

Your concerns about leaving Bitcoins in the hands of platforms, even pawn shops, resonate with many. Yet, recall how pawn shops were once eyed with suspicion before their acceptance. The promise of blockchain extends beyond a value holder or exchange medium. It's the foundation of a fresh fiscal order where power is distributed, providing everyone an equal shot. Thus, employing pawn shops for Bitcoin could bridge the traditional and crypto finance gap.

Despite skepticism, Bitcoin's global ascension continues to break barriers and set standards. Your nation might not be on board yet, but blockchain's influence is universal. Stay positive, stay intrigued – the future holds boundless possibilities.

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I really wouldn't trust any platform to store my bitcoins. even if it's a pawn shop. Because it's a bit like storing bitcoins on a centralized Exchange. But for someone who has certain interests will probably do it. but I personally prefer to avoid it. And in my country there is no such thing. at least that I know. but I don't know if it already exists and I missed it.
But if in my country things like pawning Bitcoin start to open. then maybe there will be a number of people who pawn their bitcoins. and I think the person who did this must be in a desperate situation.

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Quote from: Reatim on June 29, 2023, 10:24:21 PM

But like what I've said above , now I will consider what Dave says and yes never that I will pawn my precious bitcoin , I would rather borrow from all sorts that letting others have control and hold my Bitcoin.

I remember those threads that using their Bitcoin as collateral and in the end , they regret that action and I don't wanna be one , I will keep hold my coins no matter what Happen , I would rather pawn my house or car than pawning my Coin ..

Same here.

If I needed money I would prefer to sell things, but even in the hypothetical situation where I only had the possibility to pawn, I would pawn anything rather than bitcoin. There is an essential difference. You can't easily take a house with you on a plane thousands of miles away, or send it to someone easily. With bitcoin you can, and that's why I think it's essential to keep the keys.

Reatim

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Quote from: Inwestour on June 29, 2023, 07:29:34 AM

Quote from: Reatim on June 29, 2023, 01:09:53 AM

worth reading mate thanks , I thought at first that it can be manage to pawn but after you read this ? yeah I will consider all your points because there are so many things we need to be bother because of our precious coins.
and also what if the business turns scam once there is coming super bullrun?
what if after pawning the price climbs up to 1 million( I know it is exaggerated but possibilities are always there)
maybe I will rather borrow money from my family members and friends just to keep my Bitcoin in my hands.

We must always control our coins, this is a very important point. To prevent such a situation from having to think about it, you should always have a cash reserve. Unforeseen situations can happen, no one is safe from this, but you can create a reserve, so that it is always available to you, this will help solve almost any situation, without having to mortgage or sell part of your investment.

Actually I do have always a cash reserve but instances happens and sometimes we cannot prevent from needing more than how much we have in reserve so yes this is why this post exist .

But like what I've said above , now I will consider what Dave says and yes never that I will pawn my precious bitcoin , I would rather borrow from all sorts that letting others have control and hold my Bitcoin.

I remember those threads that using their Bitcoin as collateral and in the end , they regret that action and I don't wanna be one , I will keep hold my coins no matter what Happen , I would rather pawn my house or car than pawning my Coin .
in this I may turn things differently in the future even if this took me a while finding best result .

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Quote from: Reatim on June 29, 2023, 01:09:53 AM

worth reading mate thanks , I thought at first that it can be manage to pawn but after you read this ? yeah I will consider all your points because there are so many things we need to be bother because of our precious coins.
and also what if the business turns scam once there is coming super bullrun?
what if after pawning the price climbs up to 1 million( I know it is exaggerated but possibilities are always there)
maybe I will rather borrow money from my family members and friends just to keep my Bitcoin in my hands.

We must always control our coins, this is a very important point. To prevent such a situation from having to think about it, you should always have a cash reserve. Unforeseen situations can happen, no one is safe from this, but you can create a reserve, so that it is always available to you, this will help solve almost any situation, without having to mortgage or sell part of your investment.

retreat

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It depends. If conditions force me to pawn Bitcoin, I might pawn it, but of course, as DaveF said above, this agreement should be clear and should not be detrimental to both parties. Starting from the price of Bitcoin, where it is stored, the time of borrowing, interest, etc., it should be clear in the agreement, don't harm the borrower.
Because it is possible that the pawnshop has evil intentions and takes away all the Bitcoins that are pawned for their own interests and in my opinion this is the importance of a third party which will guarantee that all the Bitcoins that have been pawned are stored safely and cannot be withdrawn by the pawnshop or the customer before the contract expires.

avp2306

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No since you are the one lose in this set up since we don't know if there's more problem to come and we can't pay our pawned bitcoins. Also for sure we would hand it on much lower value than the current rate so its bad decision for us to do that since the only one who win on this set up is the one who take your bitcoins.

But if you really need since its emergency and you are 100% sure that you can pay then maybe do it but don't faster because we don't know what would came out to the mind of the lender if bitcoin price suddenly pump up.

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Quote from: m2017 on June 27, 2023, 04:54:02 AM

- Would you approve of the possibility of leaving crypto as a deposit in a pawnshop?

Why not, at least the settling rules are more detailed about sharing profits or losses based on example scenarios like the 2nd comment. In turn, volatile collateral will burden one of the parties, the agreement on paper must be written in such a way.

Quote

- Has such a service not yet appeared in your country of residence?

Not yet

Quote

- How do you feel about the emergence of such new trends in the service sector?

This isn't new to the service sector, but I've never heard of an incorporated pawnshop adopting this.

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I am thinking of some mortgage loans in this market and it is quite similar to the problem OP mentioned, as I have also mortgaged crypto assets for a loan so I think I am completely ready to do this. many times. In the case where the lender is safe enough to mortgage their own assets, as I remember before from mortgaging some altcoins on binance to borrow usdt, I don't see much of a risk here because of what inherently what What I'm looking forward to is what they're dealing with. Actually, if I don't want to say that this form is too popular and there are different fields related to it, but the name that stands out in the environment defi makerdao, aave, compound,... all have taken forms this is very popular.
As for the local forms I know there are also, but I wouldn't want to use them as convenience here is what I know in this market so I don't intend to have to look for more. a new way out of life where trust isn't great enough.

Topic: Would you dare to pawn your bitcoin? (Read 509 times)