Collateral

[bitdib]

Some people loan without asking for it, that is, Collateral. Somebody once said to me that if you loan someone some money, make sure you first get collateral that you can turn around and sell if the borrower defaults on repaying the loan. That sounded like good advice to me, but if someone wants to borrow money from me, I'll ask him "Do I look like a bank?" If you loan without requiring security for the repayment of the loan, aren't you just asking to be scammed? How can you loan BTC without requiring security in the form of collateral which can be sold after a default and know that you'll be repaid? I don't think you can.