Bitcoin’s Traits Might Lead to Its Use as Collateral for Lending

Bitcoin’s Traits Might Lead to Its Use as Collateral for Lending

When applying for a loan, you’ll come across a term: collateral. It’s an asset that the lender accepts as security for the loan. If you default on the loan, the lender can seize the collateral and sell it to repay the debt. The financial institution needs a guarantee that the loan they’ve given the buyer isn’t a lost fund. Collateral typically takes the form of real estate. Since the collateral offers assurance that you’ll pay back the money, the loan …