Understanding Bitcoin-Backed Loans Series
Part 2 of 4: Balancing Interests of Lenders and Borrowers
Ever wondered how loans work in the real world? It's a balancing act! ⚖️
Traditionally, loans involve collateral. Here, the challenge gets interesting: lenders want control (think USD) and high interest, while borrowers want flexibility (think Bitcoin) and low rates. If a loan agreement is unbalanced and favors one side over the other, it’s unsustainable. That’s why some bitcoin-backed lending models have scaled (like Ledn) and others have not…
Learn more by reading the full blog at: blog.ledn.io/en/bitcoin-backe...
Stay tuned for Part 3: Custody models for Bitcoin-backed loans
#Bitcoin #CryptoLoans #Ledn #FinancialFreedom #CryptoSeries #InvestSmart