Bitcoin as Collateral: What Do Banks Care About Your Assets? Although S&P Global reports positively, you still need to stay alert. The financial industry doesn't focus on the "intrinsic value" inside the asset but only looks at market price and liquidity to decide on lending. Almost no asset trades exactly at its intrinsic value. If the market experiences significant volatility, using Bitcoin as collateral could lead to severe margin calls and forced liquidations. Playing with big banks, you must be extremely cautious to avoid "disappearing" unexpectedly. $BTC #CelebratingNewYearOnGateSquare
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Bitcoin as Collateral: What Do Banks Care About Your Assets? Although S&P Global reports positively, you still need to stay alert. The financial industry doesn't focus on the "intrinsic value" inside the asset but only looks at market price and liquidity to decide on lending. Almost no asset trades exactly at its intrinsic value. If the market experiences significant volatility, using Bitcoin as collateral could lead to severe margin calls and forced liquidations. Playing with big banks, you must be extremely cautious to avoid "disappearing" unexpectedly. $BTC #CelebratingNewYearOnGateSquare