Borrow A Bit March 09 2018
Here is something to tell your underwhelmed, naysayer friend about the permanence and legitimacy of cryptocurrency, now you can use your Bitcoin as collateral against a loan. Cryptocurrency isn’t just valued by a few nerdy tech people on the internet, now banks agree that cryptocurrency is absolutely valuable and they want to do business with it. Using Bitcoin as collateral has been a highly useful structure for a lot of people who were in the cryptocurrency market early and don’t necessarily want to sell of their assets but want some liquidity. On the banking side, Bitcoin is a great form of collateral because it is accepted globally, can be easily monetized and its value isn’t subject to appraisal like your grandmothers necklace or the family china. Borrowing against Bitcoin was an idea initiated by a few small start-ups and as with anything crypto related mainstreams banks lagged behind but have been gaining speed. Now, some of the same initial start-ups who loaned cash backed by bitcoin are looking to take advantage of blockchain to facilitate the lending operations. With more mainstream transactions Bitcoin again proves it is something to be taken seriously.
Here are some articles about using bitcoin as collateral: