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?
Published at
2025-01-07 21:14:20Event JSON
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"content": "Not that I would do this yet, but very curious why #Bitcoin backed loans have absurdly high APRs. \n\nIt 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%... \n\nIs it perhaps because banks have been kept out so far? Will it change with regulations allowing bank to custody and offer lending services?\n\nThought?",
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