Even if the bitcoin depreciates over the loan term(which 12mo term is more likely than say, 48 or 60mo terms), the liquidity access can still be crucial for individuals who can beat the interest rate, as it’s all paid back in fiat, not bitcoin. The bitcoin just sits as collateral.
Say I wanted to build a house, but my primary asset is bitcoin, and therefor i don’t qualify for a construction loan. I could fund the building of my house using a bitcoin backed loan, then mortgage the house to pay off that loan.
Construction loans are getting harder and harder to come by, as builders don’t want to take the risk and prefer cash buyers.
Tortuga / 🐢
npub1e3…0qvr5
2025-05-10 23:00:31
in reply to nevent1q…4ajy
Author Public Key
npub1e3mx09yq53gyh9368qyuhfstgk8t7p5vvfcnvgwa4994y7rqg37s20qvr5Published at
2025-05-10 23:00:31Event JSON
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