Michele
Fri Jul 12 2024
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5 answers
994
Can a business lend cash in exchange for bitcoin as collateral?
Could you elaborate on the feasibility of a business lending cash in return for Bitcoin as collateral? Given the volatile nature of cryptocurrencies, how would a lender assess the risk associated with such a transaction? Would the lender require a certain percentage of the bitcoin's current market value as collateral, or would other factors come into play? Furthermore, what are the legal implications and regulatory considerations that businesses should be aware of when engaging in such lending practices? I'm interested in understanding the overall landscape of cryptocurrency-backed lending from a financial perspective.
