Would you dare to pawn your bitcoin?

[bitgolden]

I don't think anyone would do something like that to pawn Bitcoin in a pawnshop, if you are the type of person who believes that Bitcoin will be worth 100k$ each, it would be a stupid thing to do to pawn it in reality.

Maybe someone will make a Bitcoin mortgage at the pawnshop and if the pawnshop agrees, this person probably does not have enough deep knowledge about Bitcoin, this is the only reason I can see.

I am not entirely sure if even pawnshops accept bitcoin to be fair. It's like going to a pawnshop and giving 100 dollars and asking 50 dollars back in exchange and hoping that you would do better in the future. If you are willing to part ways with your bitcoin then smart thing to do would be selling it, there is literally no difference in that at all.

People pawn their items because items are not currency, it's not easy to move it around, it's not easy to sell them, you can't really sell your items that easily, it would be quite tough. So, what could you do? You would be able to actually make a big deal out of it by just pawning your items and getting them back with hopes that it won't be sold until you get back, but currency could be used everywhere anyway and bitcoin is a currency.

[1714830316]

1714830316

[m2017]

Now let's move on to the question posed in the topic title.
- Would you approve of the possibility of leaving crypto as a deposit in a pawnshop?
- Has such a service not yet appeared in your country of residence?
- How do you feel about the emergence of such new trends in the service sector?

I think that this service in a pawnshop will not be possible without the KYC procedure, which few will like.

I don't mind the pawnshops accepting crypto as a collateral, but what happens if the crypto prices drop severely?

Not yet known. I suppose that everything will depend on the agreements / contract between the pawnshop and the client. Most likely, such conditions will be approximately the same in all pawnshops. So to speak, will become standard.

Will the pawnshop sell the crypto and liquidate the loan when the borrower doesn't want this to happen? I think that the answer is yes.

If this is prohibited in the contract, then it is unlikely that the pawnshop will be able to do this. But probably, the pawnshop will not prescribe this in the conditions in order to leave additional opportunities for themselves.

Who can guarantee that the pawnshop owners won't find a way to scam their customers?

Of course, no one. Pawnshops have always acted in their own interests, and the case of cryptocurrencies is no exception. But if there is a demand (in the specified article), then for their customers this is also necessary or, at least, is a necessity.

Also the KYC procedure would make this service undesirable for most borrowers.

Did KYC push the user away from using exchangers? I'm sure pawnshops will find their customers even with KYC.

The most important question is, why would anyone want to get a loan from a pawnshop when he(or she) has enough crypto?

What if it's not enough?
In general, I have no idea who might be interested in this, but I proceed from the information from the article, which means that someone still needs it.

Why not just sell the crypto for fiat?

I don't know the answer, because I'm probably not a pawnshop customer.

[AmoreJaz]

I don't think anyone would do something like that to pawn Bitcoin in a pawnshop, if you are the type of person who believes that Bitcoin will be worth 100k$ each, it would be a stupid thing to do to pawn it in reality.

Maybe someone will make a Bitcoin mortgage at the pawnshop and if the pawnshop agrees, this person probably does not have enough deep knowledge about Bitcoin, this is the only reason I can see.

I am not entirely sure if even pawnshops accept bitcoin to be fair. It's like going to a pawnshop and giving 100 dollars and asking 50 dollars back in exchange and hoping that you would do better in the future. If you are willing to part ways with your bitcoin then smart thing to do would be selling it, there is literally no difference in that at all.

People pawn their items because items are not currency, it's not easy to move it around, it's not easy to sell them, you can't really sell your items that easily, it would be quite tough. So, what could you do? You would be able to actually make a big deal out of it by just pawning your items and getting them back with hopes that it won't be sold until you get back, but currency could be used everywhere anyway and bitcoin is a currency.

that is true, there's no need to pawn your btc. just sell it and buy when you have the funds. why make your life so complicated with these things. this is why i don't like many crypto lending apps, they will ask for collateral and then you still need to pay for the interest. so why not sell directly your crypto? think of the trouble that you're going into if you will use these lending apps.  at least, you don't owe anyone as you are using your own funds.

[Peanutswar]

It depends if the pawnshop accepts the use of bitcoin because some of the countries does not support or even implement the adaptation of the Bitcoin itself, if that so they still support I can use my bitcoin for deposit but in that case scenario for emergency only imagine you sell your bitcoin for a smaller price and we know how does the market volatility of the bitcoin works at the end of the day for me its a lose case scneratio for the long term goal.

I don't think anyone would do something like that to pawn Bitcoin in a pawnshop, if you are the type of person who believes that Bitcoin will be worth 100k$ each, it would be a stupid thing to do to pawn it in reality.

Maybe someone will make a Bitcoin mortgage at the pawnshop and if the pawnshop agrees, this person probably does not have enough deep knowledge about Bitcoin, this is the only reason I can see.

I am not entirely sure if even pawnshops accept bitcoin to be fair. It's like going to a pawnshop and giving 100 dollars and asking 50 dollars back in exchange and hoping that you would do better in the future. If you are willing to part ways with your bitcoin then smart thing to do would be selling it, there is literally no difference in that at all.

People pawn their items because items are not currency, it's not easy to move it around, it's not easy to sell them, you can't really sell your items that easily, it would be quite tough. So, what could you do? You would be able to actually make a big deal out of it by just pawning your items and getting them back with hopes that it won't be sold until you get back, but currency could be used everywhere anyway and bitcoin is a currency.

that is true, there's no need to pawn your btc. just sell it and buy when you have the funds. why make your life so complicated with these things. this is why i don't like many crypto lending apps, they will ask for collateral and then you still need to pay for the interest. so why not sell directly your crypto? think of the trouble that you're going into if you will use these lending apps.  at least, you don't owe anyone as you are using your own funds.

If the price of the bitcoin will goes in an uptrend market and you make a collateral with your bitcoin lose at your end that selling partial of the bitcoin so the profit cames from the price movement can be use as payment.