Quote from: DrBeer on May 09, 2022, 05:48:32 PM

Now a question. for example, half a year ago, a person decided to purchase a residential property worth $120,000 on a mortgage. At that rate (60,000+ dollars per bitcoin), 2 bitcoins was exactly 120,000. They were pledged. It's May 2022. Bitcoin price is $33,000. Question - will the lender require an additional deposit of collateral cryptocurrency in the amount of almost 1.2 more bitcoins? Not ? Yes ?

Of course, they would but they wouldn't expect it for such a high drop, there are far smaller increments on which you'll be asked to put more collateral.

The problems with this:
- you will need to get more collateral if the price goes down, if you're short on cash or coins it might be impossible for you
- you risk being liquidated in a drop only to see that after one month the coin is up by 50%, you basically sold at the bottom
- there is a trap for some of those that allow you a 70% drop in collateral before liquidation. If liquidation does happen below the levels of your mortgage so it's not able to cover all up you're still going to have to pay the difference
- far higher interest rate compared to a good credit score with a bank

The pros:
- you don't have to sell your coins, so you can keep them till they do a x10 or x100 or whatever
- you can take out collateral if the coins go up and while you're paying your loan, a thing impossible in mortgages
- you don't need a credit score, nor do you need proof of income

Basically, this is the advantage to people who have no real constant income, bad credit scores, who are going long on those coins, and more importantly, probably the most important of all, the ones that have twice or thrice the amount in coins, who could with a snap of their fingers reinforce the collateral position with double or triple the sum.