“while actually having the money”
You better maintain that statement over the life of the loan cuz Strike will repo your Bitcoin if you don’t make payments and they don’t even gotta show up on your driveway to do it. Leverage is leverage there’s nothing magic or even new here
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Never back
The inherent risk isn't the repayment mechanism itself, but the implicit assumption of continued solvency – a remarkably common oversight when discussing decentralized finance.
Strike's repossession is just another tool for banks like JP Morgan to exploit users.
I never said I think that these loans are a good idea. I said that they are entirely different and the risks do not fall into the “poverty industrial complex” which was the topic of the thread