A ‘crypto winter’ freezes hiring at Coinbase and Gemini

[johnarb]

How much bitcoin do you have to put up as collateral to get a 100K loan? I'd be hesitant to take it as collateral because of the volatility.

I realize that bitcoin is a medium of exchange and that I can buy stuff with it. I can also buy stuff with good old dollars. I have never seen anything priced in bitcoin. So in reality any merchant accepting bitcoin is probably converting it to fiat to make the sale.

I agree that I can't buy anything with my amazon share. I can convert it to dollars and buy stuff with dollars. I know it's a pain to have to cash in 1 share to buy a two dollar cup of coffee but I could put the charge on my credit card until I have spent enough to warrent selling a share. I have 30 days before I have to pay interest.

EDIT: Ledn is Canadian company that does the same thing

https://ledn.io/en

It's a 50% LTV at BlockFi, but you can put more BTC than required and there are levels that will lower the interest rate on the loan

I paid off the loan already but there was a status, from memory if the value of BTC went down 75% then either deposit more BTC's or BTC gets liquidated with a 1% fee and the rest of the BTC goes back to the account

Bitcoin is a 24/7 asset so can deposit or withdraw more BTC's anytime

On spending BTC, yes, the merchant receives $ but does it really matter to the person spending the BTC?

And there's precision on the spending amount of BTC, i.e. 0.3121495 BTC, versus 5 whole amount of AMZN shares spending

Imagine if your wife wanted a Gucci bag in the middle of the night, you can use BTC or wait until the next trading market day, to sell your Amazon share and then withdraw to the bank after a couple of business days

Yea, you can use CC but so can others who don't own AMZN shares or BTC, that's not relevant to the discussion

 

[The_Krakenite]

I paid off the loan already but there was a status, from memory if the value of BTC went down 75% then either deposit more BTC's or BTC gets liquidated with a 1% fee and the rest of the BTC goes back to the account-

That's one of the big risks. There is so much leverage in crypto, that a catastrophic flash-crash such as occurred in 2010 is quite possible. At this time, there is no regulation that puts in circuit-breaker protection for BTC/ETH.

I wouldn't risk it.

 

[johnarb]

That's one of the big risks. There is so much leverage in crypto, that a catastrophic flash-crash such as occurred in 2010 is quite possible. At this time, there is no regulation that puts in circuit-breaker protection for BTC/ETH.

I wouldn't risk it.

BlockFi, Ledn, Celsius and Nexo loans are at most 50% leverage, but there were liquidations, but hardly devastating to the borrowers

The leveraged traders on FTX perp futures and Binance leveraged longs are the ones causing the flash crashes since they can get 10x or 20x leverage

There's a reason lenders are accepting BTC as collateral for loans or even mortgages to buy a house, BTC (and other blue chip cryptos) are extremely liquid 24/7 so very small risk to lenders that they don't get their money

Even Fidelity and Goldman Sachs are accepting BTC's for loans

We don't need circuit-breakers in cryptos. That's TradFi bullsh*t. Cryptos markets are good trading markets, let's not copy the TradFi dishonest markets

Last year, Cryptos lost over 40% value (over a Trillion $ of value) in a short time, twice, and no major crypto companies went bankrupt or blew up

Imagine if that happened in TradFi where the stock market lost 40% of its value in a few weeks, you'd have something like Lehman Brothers going belly up all over the place

 

[JackMorgan]

lenders will take ANYTHING as collateral if they think they can sell it before they get hammered.

its not a blessing, its just math. If btc implodes at 3am on a saturday one day, and the next tick is $5k, they will get destroyed.

 

[johnarb]

lenders will take ANYTHING as collateral if they think they can sell it before they get hammered.

its not a blessing, its just math. If btc implodes at 3am on a saturday one day, and the next tick is $5k, they will get destroyed.

Jack, can you tell us the details, LTV, loan application process, etc of a $100K loan you took that used a different collateral?

Just so everyone knows you're not full of shit as we suspect that you are

I'll tell you about the BlockFi $100K loan details to compare

 

[The_Krakenite]

This is why you don't short blue-chips before the Merge...

https://twitter.com/x/status/1533657107496521728

 

[JackMorgan]

Why is 3 years the magic number? Does it take that long to come up with a new batch of greater fools?

lol. nailed it

 

[johnarb]

lol. nailed it

Found this good video, JP, er, Jack Morgan, lol

https://twitter.com/x/status/1533726307380514816

 

[deaddog]

And there's precision on the spending amount of BTC, i.e. 0.3121495 BTC, versus 5 whole amount of AMZN shares spending

Imagine if your wife wanted a Gucci bag in the middle of the night, you can use BTC or wait until the next trading market day, to sell your Amazon share and then withdraw to the bank after a couple of business days

Yea, you can use CC but so can others who don't own AMZN shares or BTC, that's not relevant to the discussion

AH!! I now see what you are saying. Shares traded on the stock exchange are not a currency. I can't buy anything with a stock certificate but I can with a bitcoin wallet.

I can't argue with that.