[shane_b]

Most threads about wealthy complain they don’t have to sell for capital gains but average person does. This is exactly that vehicle for anyone.

You could spend $800 but your total capital is $1000 vs $1800.

In my example, you would only be out $200 because you have $800 usd and the btc was $1000 when you put it in.

Even if you go get a loan from a bank, you need 20% equity and either collateral (this case) or co sign or proof of income. All collateral just the same. It’s just risked out to be possible to borrow many multiples due to the stability of real estate collateral.

In business loans, you have to put in 20% and the assets of the purchase are collateral.

It’s the same but crypto doesn’t have debt collectors since it’s not an org. Instead the collateral has to be in the system directly so they can automate liquidation.

[bansuian]

This is similar to a securities line of credit(SLOC). Brokerages already have this. Am not getting how this is so different from todays system. M1 finance and E*Trade, IB all have SLOC. If you own a house you can get an equity line of credit. Either way you a borrowing against an asset that has some value. It just so happens in this case it’s Bitcoin. Is that the only difference?

[shane_b]

Yeah the idea is the same except for bitcoin as the asset. Additionally no minimum asset amount. SLOC allow borrowing up to 35-50% of asset vs 80% or more. The interest rates are comparable tho.

[renewiltord]

It is precisely the same but provided in a decentralized fashion. This allows anyone to participate with any amount (theoretically).