BarbellsAndBitcoin on Nostr: Not that I would do this yet, but very curious why #Bitcoin backed loans have ...
Not that I would do this yet, but very curious why #Bitcoin backed loans have absurdly high APRs.
It hardly makes it seem like pristine collateral from this perspective. Being so easy to liquidate I'd think 1-2% would be more appropriate. Not 11-16%. Who would ever take that deal? Long term capital gains in the USA is only 15%...
Is it perhaps because banks have been kept out so far? Will it change with regulations allowing bank to custody and offer lending services?
Thought?
It hardly makes it seem like pristine collateral from this perspective. Being so easy to liquidate I'd think 1-2% would be more appropriate. Not 11-16%. Who would ever take that deal? Long term capital gains in the USA is only 15%...
Is it perhaps because banks have been kept out so far? Will it change with regulations allowing bank to custody and offer lending services?
Thought?