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5 sats \ 0 replies \ @mallardshead 22 Sep 2023 \ on: Favorite places to get Bitcoin loans? bitcoin
The collateral will cost you 4x the loan value, and you'll need to trust them to return it to you, which you should assume they won't in the event of a volatile price downturn. Your liquidation point will be around a 50% decline. It's not the time for that yet. Until then, I prefer to spend the bitcoin that needs to be spent, while leveraging a certain amount 2x. You need a 50% decline to be liquidated in this case. Not ideal, but I don't like the idea of handing over 1M sats for 250k sats until the credit products improve via backend regulation or smart contracting, and the confidence curve (volatility) of BTC flattens.