what is a valid collateral ?

[warden]

Hey so i was watching people requesting loans here and sometimes they use their Bitcointalk account as a collateral but i though that the collateral must be something that can be sold right ?

What is good collateral for a loan? (From best to worst)

#1: Alternate stable and well acknowledged cryptocurrencies
#2: Securities and shares such as TAT.ASICMINER
#3: Anything that can be traded in somewhere for a secure cash/Bitcoin value quickly
#4: Physical items such as an iPad

but how can you sell a bitcointalk account ? i mean if the person turned out to be a scammer then what can you do with his account ? how do you recover the money cause you basically can't sell an account for bitcoin or can you ?

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[Joel_Jantsen]

Hey so i was watching people requesting loans here and sometimes they use their Bitcointalk account as a collateral but i though that the collateral must be something that can be sold right ?

Yes bitcointalk accounts are sold on  the forum.They're bought to either rip from signature campaigns or simply scam.

but how can you sell a bitcointalk account ? i mean if the person turned out to be a scammer then what can you do with his account ? how do you recover the money cause you basically can't sell an account for bitcoin or can you ?

If the person turned out to be a scammer,then the lender being a dumbass loses his money.The accounts gets a negative feedback.Honestly,I wish lenders would stop taking accounts as collateral as it only leads to further account sells and related scams.

[ThatRandom8543]

Accounts are usually used because some feel its worth of value and also contributes to the borrower reputation (especially if they use the same name outside the forum), however like Joel said, accounts usually receive a negative feedback once they default making them worthless, but those accounts that arent being flagged sometimes are sold which creates more problems. Lenders need to really stop accepting accounts as collateral.

[dreamsorcerer]

Accounts are accepted as collateral also because you can use in a signature campaign.
 
And an account already enrolled is even more secure respect an account not in a campaign, because meanwhile the owner earn some btc just for posting good comments.