plebiANON on Nostr: If you are planning on taking out a Bitcoin loan, I would do an incredible amount of ...

If you are planning on taking out a Bitcoin loan, I would do an incredible amount of due diligence on the platform you are doing it through. There is no way to have the lender have control of the coins and be guaranteed they aren’t hypothecating it. They can give addresses, one key visibility, and anything else they want. If you can’t move the coins, they can rehypothecate. They can pass their keys along for fiat. Additionally, I promise you that a paper claim market will develop on top of this where the same coins are pledged many times. This can be done with all parties aware or just straight up fraud like real estate tax certificate loan fraud. I’ve seen all of this in person, and it will happen again. Be extremely careful with the scarcest asset the world has ever seen. 10x coverage, price appreciation, and any other feelings of comfort are out the window when you relinquish custody. There will be ruggings.