Are there any sites/banks that will take BTC as collateral for USD loans? (I'm thinking something like maybe Prosper, but accepting collateral?)
Basically, I've got a significant amount of BTC, but am wanting USD in the short term. With the way the exchange rate has been going, I'm loathe to sell BTC at the risk of having to buy it back at a 50% premium 3 months from now. I'd much rather just use it as collateral for a USD loan ( at a non-loan-shark interest rate ) and pay back the USD.
Siggy
Hmm... This would probably work like a pawn shop transaction. You give the BTC to them, they give 30% of its value, but you still own the BTC. You must then make payments, if you miss a payment by 30 days or so, the BTC is then theirs to be liquidated.
Of course, you must trust them more than they trust you to repay.
100 BTC > $7000 * 30% > $2100 loan + 10% APR Amortized for the duration of the loan.
It could work. Not sure why you would do it tho... Unless you're leveraging with the USD Loan to buy more BTC... You'd have to hope for a 10% rise at least. Doable (lol).
But if there is a fall, you're in some trouble for the 'pawn shop' could sustain a 70% fall and still make money.
I responded here, because of the 'pawn shop' idea. I thought it be interesting to have a Casa Coin 1 oz. Gold Bitcoin 'pawned' at the Pawn Stars. I'm wondering if they'd add value to the gold because of the Bitcoin. If even a few bucks, it'd be good advertising.