im pretty sure 420$ worth of credits is sufficient enough collaeral for something less than what its worth like really though??? 1.75BTC isnt even alot thats a dollar and 75 cents in bitcoins world but in our world about 220 usd per one. the amount is suffiecient enough it falls under the current loss line of btc
It's not valid collateral because you could easily just run off with the BTC and default on the loan, effectively selling the hostgator credit for 1.75BTC.