Why people give altcoins as collateral?

[Hashminers]

True, Not all altcoins are valid, Almost aren´t valid, LTC is an example of  valid.

Examples are litcoin, monero, ethereum or dash, dgb. Those are large market cap coins. Easier to get rid of.

Volume is very important. Low volume coins can only be sold at loss.
But stil coins are a better form of collateral then an account.

[Altynbekova]

I am not in the selling of things yet, but i would defineatly accept altcoins with a good daily volume.
It's as safe at bitcoin so you are sure to get your money back.

[Nameless Coin]

I am not in the selling of things yet, but i would defineatly accept altcoins with a good daily volume.
It's as safe at bitcoin so you are sure to get your money back.

I offer some loans sometimes and I only accept big volume altcoins like litecoin, dash and Ethereum.

Most other altcoins I don't accept since they are not listed on my exchange.

[extrabyte]

Not everyone accepts altcoins as collateral, unless there are only few most popular like lt doge nxt or a few more, by this the lender want to be sure to get at least 110-120% just in case if he needs to sell the collateral to not lose even if the altcoin price changes a bit.

[fricircled]

I am not in the selling of things yet, but i would defineatly accept altcoins with a good daily volume.
It's as safe at bitcoin so you are sure to get your money back.

I offer some loans sometimes and I only accept big volume altcoins like litecoin, dash and Ethereum.

Most other altcoins I don't accept since they are not listed on my exchange.

What happens if the price of the bitcoin rise, and those altcoin price drops against bitcoin even though their dollar value remains the same?

[lahm-44]

Well there are many reasons to use altcoins for loan colletral. maybe the a person has invested in some altcoins and the price has suddenly fallen so he decided to hold the altcoins and when he needed a loan then he gave those altcoins as colletral because if he convert them now then it will lose its real value ( loss )

[Amph]

I am not in the selling of things yet, but i would defineatly accept altcoins with a good daily volume.
It's as safe at bitcoin so you are sure to get your money back.

I offer some loans sometimes and I only accept big volume altcoins like litecoin, dash and Ethereum.

Most other altcoins I don't accept since they are not listed on my exchange.

What happens if the price of the bitcoin rise, and those altcoin price drops against bitcoin even though their dollar value remains the same?

it has happened already but it is very rare and not for the top altcoin, since some of them are directly tied with fiat like bitcoin