reply on: How to Borrow Against Your Bitcoin, or: Overcollateralized Loans are Inefficient \ stacker news ~econ

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10 sats \ 3 replies \ @denlillaapan OP 4h \ parent \ on: How to Borrow Against Your Bitcoin, or: Overcollateralized Loans are Inefficient econ

definitely safer.

We all have different financial/professional circumstances, which, I guess, informs the risks we're willing to take

0 sats \ 2 replies \ @Satosora 4h

Do you think people that have less bitcoin want to take more risk? Or people with more bitcoin want to take more risk? Seems like something worth thinking about.

10 sats \ 1 reply \ @denlillaapan OP 4h

a little bit of both: there's definitely an element of catch-up ("oh, by leveraging I can get ahead, get my hands on more sats!").

But there's also an element where those with more bitcoin need avenues to spend out of their wealth. Few merchants/landlords accept BTC payments, so various fiat-rail financial engineering is needed.

I'm not sure how the balance here goes. Do you have any reason to believe that it's more of one group than another?

0 sats \ 0 replies \ @Satosora 4h

Maybe the people that understand economics and finance are more willing to try this? I just feel that people that have enough dont need to do this kind of thing. Why would they risk it? So maybe that means the people that were in bitcoin earlier? I do see your point, everyone that didnt get in earlier might want to try doing catchup to get more sats. I just believe there are other avenues that are better at the moment.