Power of Bitcoin for borrowing

Wanted to share some thoughts here. Bitcoin can make life easier if you need to borrow against your own asset. You never have to sell your Bitcoin if you need large short term cash.

One example is using Coinbase lend. Let say you own 1 Bitcoin at and it is worth $60,000. You can borrow 40% against your coin for 8% APY which would be about $20,000 you can get cash in your bank account within a few days.

Done are the days where to you have to fill a lot of paperwork for the bank for a personal loan and pay a loan processing fee.

You could only pay back the interest amount or more on your own term until it is paid off. The risk is low of being liquidated if Bitcoin even nosedive one day, and reduces as you pay down the principal amount.

Why would someone borrow? Let’s say you needed to get a used car and have to borrow cash for it. You could go to the bank/auto dealership and deal with a lot of paperwork and credit check. Or you can simply borrow against your coin and pay it back on your own term without selling.

If you need cash, think about borrowing against your BTC vs cashing out.

If you have a credit card with 24% interest, and want to pay it off faster, you could borrow at 8% to pay your card faster. You want to make a large purchase? Borrow cash against your Bitcoin vs your high credit card APY.

I wouldn’t recommend borrowing the cash to buy more Bitcoin or other coins.