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Peter Schiff questions the security of the Bitcoin-Based loan

Peter Schiff, the CEO of the Investment Advisory company Euro Pacific Capital is seen questioning the bitcoin developments. In a recent tweet, he questioned the bitcoin enthusiast “ How do you accept bitcoin as a Collateral for a loan? “ The tweet plots a condition to users asking  “ How do you get your money back if Bitcoin crashes before the loan is repaid?”.  

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A few days ago, Peter Schiff said that the ‘Gold’ will moon and the ‘Bitcoin’ would Crash. As you might now anticipate, he believes using the universally accessible bitcoin as collateral is a terrible and awful idea.

According to him, it is a saving grace that the globally used Bitcoin has such massive price fluctuations. Even though the Bitcoin fractal indicates a serious price crash.

Confused? read our guide to blockchain & bitcoin 

This buzz comes after the latest Developments in Bitcoins-based lending in the mainstream

Further to Blockchain technology, Defi is taking up attention with its applications in diverse fields. It has remarkable growth but it had left behind the most valuable crypto-asset of today i.e. Bitcoin. 

On the ongoing COVID-19 fear. Investors are looking forward to more secure and beneficial ways to secure and invest funds. Crypto lending is gaining traction, as with trusted providers, this becomes more reliable. 

Recently 

Atomic loans, a cryptocurrency startup has raised $2.5 million to build a decentralized lending protocol for bitcoin. Initialized Capital, San Francisco –headquartered VC, led seed round. The startup provides a Defi (decentralized finance) solution for people withholding BTC. 

It permits users to deposit BTC and take out DAI and USDC loans by securing in an escrow without losing custody. This borrowing feature is now available for the use of the public and they may get their collateral back as soon as the loans get repaid.

Peter Schiff On 16th April Pinches the bitcoin again with his tweet Saying 

“ I have a question for Bitcoin HODLers. If a global pandemic, crashing stock markets, world-wide recession/depression, zero percent interest rates, unprecedented government borrowing and fiat money printing, plus a breakout in #gold hasn’t caused #Bitcoin to go up, what will? “ 

It’s Interesting to see the replies by Cryptocurrencies enthusiasts 

The International Monetary Fund’s (IMF) outlook for the global economy comprises a negative omen for the cryptocurrency. It has also warned about the risk of Bitcoin’s biggest downturn. Peter persists that the bitcoin market is yet to see Bitcoin’s ‘extreme’ price plunge ever whereas monetary metals like gold and silver might witness a push-up in their prices.

Closing 

Bitcoin loans are good for crypto enthusiasts, users who do not match requirements from banks and those who are willing for Instant news with less rate of interest. Though these loans are not well regulated and the price fluctuations can hit you hard, you can still deal with good providers with better policies in favor.

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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