They make more vig if their customers aren't liquidated.

genuine question: do people actually believe this? to state the obvious, my business incentive is to keep the loan open for as long as possible. i get paid servicing my customer. “taking their bitcoin” onto my balance sheet would be about the dumbest way imaginable for me to acquire bitcoin. if i want to buy bitcoin at these levels (which i do every day, regardless of price), i buy it with profit. we don’t lend out cash from our balance sheet because we don’t want to own billions of dollars of fiat. Strike owns as much bitcoin as possible. we lend out fiat that we got from someone else. when a loan gets liquidated, it’s because i owe that cash back to someone else who gave me fiat. if the customer defaults, i have to sell the bitcoin to get them back the cash. what do i want? i want bitcoiners to have healthy loans and never sell, forever. i buy bitcoin with the money i earn providing the service… duh? View quoted note →

yes lol just posted this in more words

People like Jack are huge for Bitcoin adoption whether you like him or not. Anyone spreading knowledge on Bitcoin is good in my book 🤙

How many already-KYC'd people on Strike are in desperate need of a high interest loan? They can't go to a real bank or credit card company for the liquidity? Sounds like people ripe for liquidation.

Genuinely curious, why do you believe it is bad to give people the option to borrow against their own assets?

I don’t

Oh man, my bad, I totally misread your post. Sorry about that!