Let’s say that I want to borrow against my BTC, is there a way to do it on the blockchain without having to have a paper contract? On the same note, have you heard of any lending platform that will accept BTC as collateral?
Convert your btc to a btc etf at IB. You can then borrow (using the etfs as collateral) for like fed funds + 50bps. Not going to get much better than that!
There are plenty of platforms that offer loans for BTC collateral. I think on Nexo you get 50% back and they take the payments out of your BTC. I'm not familiar with the others...this was years ago. This is an actual real world use of Bitcoin that all the naysayers complaining about how it isn't a currency forget. https://nexologist.com/credit-calculator/
Thanks guys. Real world acceptance as an asset was one of the things I was wondering about. But it sounds like there isn’t a way for me to loan an individual BTC/fiat against their BTC by just using a blockchain entry. I wonder if one of the alt coins is designed to do this?
Are you talking about a peer to peer loan via a smart contract? Maybe etherium.. https://www.blockchain-council.org/...gSFot6JSpBkRl8nYlRPqBEGhWo4YElHxoCNOEQAvD_BwE
I'm not sure if you are talking about leverage or not. But i'm sure Kraken and Coinbase offer leverage, if you feel like dealing with a crypto exchange
I’m just thinking about the “be your own bank” catch phrase. For BTC to really eliminate the need for banks there would need to be a way to loan your coin to other individuals, recorded on the blockchain.
There are ways to do that. You can stake Ethereum. (Im too scared to stake my Eth because it means giving up your seed phrase) I know Binance used to have a 10% annual borrowing program.
Is there a way to do it without going through an exchange? For instance, if a friend wanted to borrow money from me and give their BTH (or ETH) as collateral? I mean in some binding mechanism that didn’t require me to trust them to make good?