It's great as long as the price has a bias towards the upside, which can't always be guaranteed, especially if the bear market turns out to drag on for years.
If Ledn ends up shorting a small percentage of their BTC holdings (which is what payment gateways do as well), they could potentially work around the risk of falling prices, but I can't read anywhere if that's something they will be doing. It would make sense if they did, because regardless of how much potential they believe hides within Bitcoin, there are limits for everyone runnig a business.
Positive side is that if large enough parties take out a loan with their coins as collateral instead of dumping them on the spot market, we may face less selling pressure.
I mean its collateral right? So only if you default on the loan the coin would be lost and they would choose to either hold or liquidate that coin. I mean you could see a huge drop in price where your loan > crypto collateral and you rather keep the money but the credit hit would be terrible.If Ledn ends up shorting a small percentage of their BTC holdings (which is what payment gateways do as well), they could potentially work around the risk of falling prices, but I can't read anywhere if that's something they will be doing. It would make sense if they did, because regardless of how much potential they believe hides within Bitcoin, there are limits for everyone runnig a business.
Positive side is that if large enough parties take out a loan with their coins as collateral instead of dumping them on the spot market, we may face less selling pressure.