Thanks for the consider response. I meant my post as a warning to those who would borrow against the Bitcoin holdings. Anytime you put up an asset as collateral, the terms of the deal really matter. If it is a home, how many payments can you miss before you are foreclosed and evicted. If it is stock, how far can it drop before you are forced to sell the stock who's price is falling. If it is Bitcoin, I imagine it is much like stock bought on margin. If the price drops, you either come up with cash or the sell your Bitcoin to keep their investment above water. Once you borrow against an asset you are no longer in control of that asset.

Bitcoin does not always appreciate. Lenders work in real time they are not hodl. If your house has a mortgage, your car an auto load, your stock on margin or your Bitcoin you borrowed against. You don't own those things, they belong to the lender as much as they belong to you. Funny think, those people, mortgage lenders, banks, exchanges, they have an army of lawyers and others that can screw you in a heartbeat.

TEK