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Author Topic: How does the collateral system work  (Read 680 times)
jbmac1967 (OP)
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February 17, 2014, 11:12:08 AM
 #1

I might be looking into asking to borrow some BTC, either 1-2 BTC

As "collateral" i have 36 Silver 1oz coins,

Do i send the lender the coins, in return he sends the BTC, then if BTC is repaid he sends back the coins to me

Is that pretty much how it goes?
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OnkelPaul
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February 17, 2014, 11:16:06 AM
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For physical callateral, yes (collateral can only work when the lender has complete control over it in case you default).
Since the shipping costs can be quite high (especially if you include insurance), altcoins are often used as collateral - transferring them is cheap and almost instantaneous.

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February 17, 2014, 01:31:26 PM
 #3

Always check the Trust, even click on Untrusted Ratings and then Show Ratings. Unless the lender has a proven, impeccable record, use escrow for any collateral. Use due diligence for all transactions.

When the subject of buying BTC with Paypal comes up, I often remember this: 

Insanity: doing the same thing over and over again and expecting different results.

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jbmac1967 (OP)
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February 17, 2014, 09:52:55 PM
 #4

How does the escrow work, and how do I find a reputable Escrow agent

And because my collateral is 36oz of silver bullion prefer them to be based in the UK
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February 17, 2014, 11:22:38 PM
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How does the escrow work, and how do I find a reputable Escrow agent

And because my collateral is 36oz of silver bullion prefer them to be based in the UK
You can find a list of escrows here: https://bitcointalk.org/index.php?topic=108716.0

You will have to send your silver bullion to the selected escrow. The lender will then send the bitcoins to you. The escrow will hold the silver until you repay your loan, then send it back to you. If you don't repay your loan, the silver will be sent to the lender instead, which they may then sell to recoup their losses.
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February 18, 2014, 01:29:16 AM
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So besides physical possessions and altcoins, what else can be used as a collateral?
mr smith
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February 23, 2014, 09:53:29 PM
 #7

How does the escrow work, and how do I find a reputable Escrow agent

And because my collateral is 36oz of silver bullion prefer them to be based in the UK
I work in London and may be able to provide assistance.
Please note i am a trader. How long do you require the lone for?
At best you are looking at sell price - 20%
it would probably be easier for you to try your local porn shop.
PM me if needed.


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February 23, 2014, 09:57:06 PM
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Please note i am a trader. How long do you require the lone for?

You are a trader, and cannot spell loan?   Roll Eyes

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February 23, 2014, 10:11:45 PM
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Please note i am a trader. How long do you require the lone for?

You are a trader, and cannot spell loan?   Roll Eyes
YES carnt spell to save my life. thats why i buy and sell things. i assume you your command of English far superior to mine.

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