Re: Cryptocurrency Exchange In Japan Is Offering Bitcoin Loan

Japanese Cryptocurrency exchange Bitbank has made an announcement to commence BTC-USD, a Bitcoin borrowing program. The idea has been developed to engage more new customers along with enhancing additional foreign exchange.
https://www.owltmarket.com/cryptocurrency-exchange-in-japan-is-offering-bitcoin-loan/

Wow this is really an innovative strategy to promote bitcoin. Bitcoin has relatively gone so far on its mileage of achievement though there are many critics on it but still bitcoin continue to strive and prove its worth. Well i had enough loan on bank and i am not qualified on this even if they offer it outside on their country.

Exchanges in Japan looks like banks, they applied KYC and AML regulations, so using a loan in BTC seems very similar when you use a normal bank's loan. The difference is that if you don't have incomes in BTC, you can have a problem with the exchange rate (e.g. if the BTC price goes to the moon, you have to pay back much more in fiat compared to the amount you have received in the beginning)

If this is true, then this is a terrible idea. People are already knee deep into debt and now they need to take loans on something that are very volatile. Huh

I should think that the loan is only applicable on the fiat capital that were funded at the time of the transaction, by the Bank.

You would be stupid to pay back a loan on the basis that the loaned amount increased based on the price of Bitcoin. Last year the price increased by 800%+