This is stupid because we have an exchange already for trading, but using Bitcoin as collateral? Something that fluctuates a lot? It's better to come into an agreement with the pawn store owner base on the price action between the payback period or else it's going to be a bad idea.
This is just me though, some might make more sense out of the idea but I don't see how, you could get burnt easily if you use Bitcoin or any volatile assets like crypto currency as collateral.
Topic: Would you dare to pawn your bitcoin? - page 2. (Read 509 times)
No different then taking a loan against your BTC from some of the larger places that do it online.
The biggest issue I see is regulation and price volatility and the rules that you are agreeing to when you do it.
You give them 1BTC they give you $25000. If the price goes up can you get more cash from them? Or do they give you some back.
If the price plummets back to $15000 and you walk away do they have any way of going after you?
Personally I would not, but that is just me. Would rather just sell and buy back. Unless they are offering very low interest rates, which pawn shops are not known for.
-Dave
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.The biggest issue I see is regulation and price volatility and the rules that you are agreeing to when you do it.
You give them 1BTC they give you $25000. If the price goes up can you get more cash from them? Or do they give you some back.
If the price plummets back to $15000 and you walk away do they have any way of going after you?
Personally I would not, but that is just me. Would rather just sell and buy back. Unless they are offering very low interest rates, which pawn shops are not known for.
-Dave
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.
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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.
- 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?
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.
Who can guarantee that the pawnshop owners won't find a way to scam their customers?
Also the KYC procedure would make this service undesirable for most borrowers.
The most important question is, why would anyone want to get a loan from a pawnshop when he(or she) has enough crypto?
Why not just sell the crypto for fiat?
If you are in a situation where you have to leave a deposit as an emergency option and you have no other collateral, then I will do it. I will just make sure that it is a short-term arrangement, because I do not want to miss out on any price spikes. 
I will not do this under any other circumstances, because my Bitcoin must be under my control and available 24/7. Also, if you transfer your coins to another wallet and a fork is done... then you will lose out on any free coins from the new fork.
I will not do this under any other circumstances, because my Bitcoin must be under my control and available 24/7. Also, if you transfer your coins to another wallet and a fork is done... then you will lose out on any free coins from the new fork.
From where I stand, pawnshops taking crypto as collateral is a leap forward, etching tangible acknowledgment to the worth of this digital asset. It's an open secret that cryptos, mainly Bitcoin, have shown a knack for steep value climb, sometimes even leapfrogging gold.
The rollout isn't going to be smooth sailing, though. We need airtight laws to supervise this shift, ensuring consumer safety. If Russia's Central Bank greenlights it, it'll likely set the stage for others.
Where I reside, this service is yet to launch, but I see it as a future inevitability. KYC checks might rub some the wrong way, but they're indispensable for nipping scams in the bud and maintaining a clear picture. As a crypto enthusiast, Im rooting for such future-facing leaps in merging crypto with traditional systems.
The rollout isn't going to be smooth sailing, though. We need airtight laws to supervise this shift, ensuring consumer safety. If Russia's Central Bank greenlights it, it'll likely set the stage for others.
Where I reside, this service is yet to launch, but I see it as a future inevitability. KYC checks might rub some the wrong way, but they're indispensable for nipping scams in the bud and maintaining a clear picture. As a crypto enthusiast, Im rooting for such future-facing leaps in merging crypto with traditional systems.
The lending section is littered with users who are using their alts as guarantee and more often than not using bitcoin as their payout (or visa-versa - not sure would have to look that one up)
Effectively they are treating the lending section as a poor-man's pawn shop.
Effectively they are treating the lending section as a poor-man's pawn shop.
It's going to be an option, of course. If a time comes when I really needed money and I'm left with no choice but to dip into my Bitcoin stash, I'd probably be looking into it. It would either be selling or using it as collateral for a loan or pawning it. I'd be choosing whichever is best in my circumstances.
I'm not sure if pawnshops here in my country are legally allowed to accept Bitcoin as a guarantee, but I suppose it's already happening as far as individual private deals are concerned. Also, Bitcoin largely remains a thing to be studied.
Online, however, it's a lot easier for anybody to use Bitcoin as a form of collateral. It's not much different from pawning it.
I'm not sure if pawnshops here in my country are legally allowed to accept Bitcoin as a guarantee, but I suppose it's already happening as far as individual private deals are concerned. Also, Bitcoin largely remains a thing to be studied.
Online, however, it's a lot easier for anybody to use Bitcoin as a form of collateral. It's not much different from pawning it.
Nah, I wouldn't go that far to pawn my BTC, I would rather pawn physical objects, like jewelries or even your car. The worst thing that can happen is that you totally lost your bitcoin here just because of some technicalities.
And there is also the trust factor involved, and as far as I know, as what we have been preaching, not your keys, not your coins.
I'm totally against it. And even if this service is available in my country, I wouldn't do that. So voted for No.
And there is also the trust factor involved, and as far as I know, as what we have been preaching, not your keys, not your coins.
I'm totally against it. And even if this service is available in my country, I wouldn't do that. So voted for No.
if you have other means to exchange your btc to your fiat, why not do it and not use the pawn system? i do not see the logic of this move unless the person in russia has no other option to convert his btc to his fiat and he badly needs his fiat.
i can agree with other physical belongings to be pawned but crypto or btc, i don't think it is acceptable when we are already in this digital age where you can practically transact over the net.
That's my point mate, most likely it might be the last thing to do, if you are really in dire needs then why not just sell it though instead of pawning right?
If we take the case of Russia right now, if you are just a ordinary individual and might be suffering from the effects of war, then sell your BTC to survived. I don't think that Bitcoin is designed to be pawned, it's not a physical objects and I don't think that Satoshi did even think about that when he created it. Transactions should be irreversible, once you let go, it's gone.
I do not want to leave crypto as a pawnshop deposit for now. I prefer to keep it in my personal wallet. Such a service doesn't yet exist in my country; I still wouldn't want to use it if it did. I prefer to use other goods as collateral rather than crypto.
I will not also do this but maybe if in total need and when there is no option anymore, might be forced in doing so but hopefully not gonna be into that situation.It's not giving me that confidence of letting my bitcoin be with the pawnshop because you'll never know what's on the mind of these pawnshops especially if this is like a new service to them.
And as long as I have other things to pawn or if I don't have to do that, I wouldn't do it and it doesn't make sense to take a loan for nothing at all. Might keep it plain and there until the bull run arrives and sell it, I'll follow the style of delayed gratification if the thing I want can be saved and bought in the nearest future.
If it is Bitcoin, they will feel more risk and value your bitcoin like -30% or -40% from market price. It is understandable as your loan can last one month or six months and many things can happen in this market after a few months.
We don't know the details of the collateral value of bitcoin assets from the deposit regulations, but very worried that they determine the lowest market value of bitcoin from $ 15k-30k maybe they set a value of 23k-25k as the collateral value of bitcoin or it could be lower than -40% of the market price.Quote
Just selling bitcoin when you need cash, even with loss if you don't have other ways to have cash without loans at pawshops.
It raises an old reminder that you will always need to have cash to use and for emergency. If you have a reserved cash, you will not have to sell your bitcoin at lost price when you need cash. Don't use all cash you have to invest in anything as you will need cash some days.
We must determine financial management to avoid dealing with loans in pawnshops, because all financial aspects have been planned and have been arranged to need funds at any time without interfering with bitcoin investment, I personally determine 30% for long-term crypto investments, other allocations for emergency savings and gold investments , I will take advantage of both aspects if I need high funds for urgent needs without borrowing funds from a pawnshop. It raises an old reminder that you will always need to have cash to use and for emergency. If you have a reserved cash, you will not have to sell your bitcoin at lost price when you need cash. Don't use all cash you have to invest in anything as you will need cash some days.
Just sell the crypto and repay the debt is simpler to me than paying interest on something which we already have money.Well if there is a situation then why not but the pawn shop should understand the risk cause the assets are highly volatile and it's never going to be safe as gold in my opinion. Also it's not possible to claim the ownership like we can do with gold so if one party involves in not returning back the assets then it's going to be a headache again.
If I can freely use my Bitcoin as collateral in any lending service, what difference does that make between that service and the pawn shop? I guess there is not much of a difference because it is just the same service as other lending services out there. I give out my BTC and you lend me some money, which the BTC could be used as repayment if I default on the loan, and if the price of Bitcoin goes up high within the loan period, I will be at an advantage, which might definitely be the purpose of me not selling my Bitcoin but rather taking a loan with it because I have a positive mindset over price. But if the price goes below the agreed average, I might be recording some losses because those BTC will be sold out.
The only thing that might make me not hand over my BTC to the pawn shop management is security and which wallet I am also sending it from, because every record will be properly documented and can easily be forwarded to the authorities since they operate under their regulation.
The only thing that might make me not hand over my BTC to the pawn shop management is security and which wallet I am also sending it from, because every record will be properly documented and can easily be forwarded to the authorities since they operate under their regulation.
I do not want to leave crypto as a pawnshop deposit for now. I prefer to keep it in my personal wallet. Such a service doesn't yet exist in my country; I still wouldn't want to use it if it did. I prefer to use other goods as collateral rather than crypto.
The emergence of new trends in the service sector can provide fresh air, especially if it is related to crypto, so people can get to know crypto and use it well. And such services indeed have to do KYC procedures because pawnshops are connected with the government.
We need to pay attention to the KYC problem for crypto users because many crypto users don't want their crypto data to be known by the government. It will limit our movement as crypto users.
The emergence of new trends in the service sector can provide fresh air, especially if it is related to crypto, so people can get to know crypto and use it well. And such services indeed have to do KYC procedures because pawnshops are connected with the government.
We need to pay attention to the KYC problem for crypto users because many crypto users don't want their crypto data to be known by the government. It will limit our movement as crypto users.
I'm the one who don't understand what's the purpose to pawn your Bitcoin when Bitcoin is a currency and you can immediately sell it to your fiat, then you can withdraw your fiat. Although it's possible to pawn your Bitcoin, but most of centralized entity still not accept it and most people don't have a good understanding of how Bitcoin's work. Most people would get scammed because they just blindly trust someone and might get scammed twice when they seek someone who can recover their Bitcoin.
If you are the type who has a deep understanding of Bitcoin, there is no reason for you to pawn Bitcoin. Just think about common sense, if you believe that a Bitcoin will be 100k$ next year, and at its current price of 30k$, and you make it a mortgage, you are a very stupid Bitcoin holder.
Then why would you mortgage it if you can just sell it on the exchange or take a loan from the exchange and make your Bitcoin holdings collateral, as long as you are sure of yourself that you can pay what you owe. That's probably how easy it is to understand.
Then why would you mortgage it if you can just sell it on the exchange or take a loan from the exchange and make your Bitcoin holdings collateral, as long as you are sure of yourself that you can pay what you owe. That's probably how easy it is to understand.
I personally wouldn't do that! Simply because the price of cryptocurrency is volatile. It has a definite chance to go in any direction at any point of the day. So if I keep my bitcoins as collateral in a pawnshop today, their value could be much higher in the next couple of days or vice versa. So there is an element of uncertainty. For the same reason, I am not much in favor of spending my bitcoins for regular purchases. I always keep the numbers in mind and the data shows that Bitcoin has a huge potential. So I am more in favor of holding it unless some emergency happens. That's my personal opinion though and it won't go well with the Bitcoin puritans for sure.
You don't get the point here. My own understanding about pawning is if you need emergency cash like you have a valuable item and in exchange, cash is extremely low compared to the item you pawned.
Pawnshops will value your items much lower than their real values on the market. They undervalue your items to reduce risk for their business when you don't bring cash and reclaim your items back. They will be able to liquidate your items on the market without losses or they even can liquidate those items with profit from higher values than what they assessed for your loan initially.Quote
Pawning Bitcoin though is not standard practice here because at first Bitcoin is not a physical item, it will just fall into a loan with collateral.
If it is Bitcoin, they will feel more risk and value your bitcoin like -30% or -40% from market price. It is understandable as your loan can last one month or six months and many things can happen in this market after a few months.Quote
To summarize, if really need that cash at all in an emergency, why just sell your Bitcoin? I understand about the value of Bitcoin could increase or decrease but the fact is you need money. So, it's still you are trading here because no one knows what will happen in the future. Some people are making profits by doing this but if it's not your goal, then no need to "pawn" your Bitcoin.
Just selling bitcoin when you need cash, even with loss if you don't have other ways to have cash without loans at pawshops.It raises an old reminder that you will always need to have cash to use and for emergency. If you have a reserved cash, you will not have to sell your bitcoin at lost price when you need cash. Don't use all cash you have to invest in anything as you will need cash some days.
You don't get the point here. My own understanding about pawning is if you need emergency cash like you have a valuable item and in exchange, cash is extremely low compared to the item you pawned.
Pawning Bitcoin though is not standard practice here because at first Bitcoin is not a physical item, it will just fall into a loan with collateral.
To summarize, if really need that cash at all in an emergency, why just sell your Bitcoin? I understand about the value of Bitcoin could increase or decrease but the fact is you need money. So, it's still you are trading here because no one knows what will happen in the future. Some people are making profits by doing this but if it's not your goal, then no need to "pawn" your Bitcoin.
Pawn shops allows a person to get credit that they would not get otherwise while at the same time they keep possession of their items, pawn shops can also allow a person to get some money for their items that would be difficult to sell quickly, like collectibles and other similar assets.Pawning Bitcoin though is not standard practice here because at first Bitcoin is not a physical item, it will just fall into a loan with collateral.
To summarize, if really need that cash at all in an emergency, why just sell your Bitcoin? I understand about the value of Bitcoin could increase or decrease but the fact is you need money. So, it's still you are trading here because no one knows what will happen in the future. Some people are making profits by doing this but if it's not your goal, then no need to "pawn" your Bitcoin.
However bitcoin has a very liquid market and you can exchange your coins for fiat in minutes, and depending on the place where you live you could pay with your bitcoin directly without the need to sell them, so while some people out there could make use of such service I do not see too much of a need for it.
Personally, I think it's a cool option to have. It could provide an alternative way for people to access funds using their cryptocurrencies, especially if they need a short-term loan. However, ensuring proper security and compliance measures, like KYC, would be crucial.
Depositing your BTC's into a pawnshop is kind of similar to every other service in which you must give up custody of your keys, it is similar to lending and earning platforms and centralized exchanges, though these platforms are regulated differently and the purpose of depositing is different, but the risk is the same, not your keys not your coins.(....)
Pawning Bitcoin though is not standard practice here because at first Bitcoin is not a physical item, it will just fall into a loan with collateral.
To summarize, if really need that cash at all in an emergency, why just sell your Bitcoin? I understand about the value of Bitcoin could increase or decrease but the fact is you need money. So, it's still you are trading here because no one knows what will happen in the future. Some people are making profits by doing this but if it's not your goal, then no need to "pawn" your Bitcoin.
- Would you approve of the possibility of leaving crypto as a deposit in a pawnshop?
I approve of everyone doing what they want with their Bitcoin, but it seems to me that the person who pawns them doesn't really understand what this is all about. To begin with, the money you put in Bitcoin should be money that you know you will not need for years, but even if I suppose that I had a big unexpected event that would make me need the money, I would rather sell part of my Bitcoins than pawn them.
- How do you feel about the emergence of such new trends in the service sector?
Well, it's just more crap like centralized exchanges or custodial wallets, which a lot of people will use.
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