I’m still not getting it. So if I collateralize a crypto loan with, say, $1M dollars worth of Bitcoin, to get, say, $500K worth of a loan, then I sell the borrowed crypto to buy a house, then the price of Bitcoin drops 30% and I don’t pay the loan back, I’m still out $1M worth of Bitcoin for the sake of buying a $500K home am I not? So the only way this words if if the value of the coins you’re borrowing goes up? Do I have this right or am I way off?
Thanks for the video! The problem I see that still doesn’t work for me with DeFi is the over-colateralization. Most of these lenders are 50% collateral such as with AAVE. If this were the case, you’d have to lock away over $1.2m for a $600k home. Most of these situations which I’ve seen, you can’t just pull out your collateral either, it’s locked up till the loan is payed off. So I guess, the “why” is still not answered for me
Really interesting, I don’t understand why people would lend into this system? It’s all based on an assumption the price of cryptos is going to go up? If it plummets you have worthless collateral?
Hopefully someone can explain
How to get ethereum unstuck. Tried to send it to my wallet, showing complete, but transaction id does not exist in etherscan, and not showing on my wallet…how can I overcome this?
Thank you for the video Richard.Please show me how to make money with cryptocurrency.I don’t have a income.
I’m still not getting it. So if I collateralize a crypto loan with, say, $1M dollars worth of Bitcoin, to get, say, $500K worth of a loan, then I sell the borrowed crypto to buy a house, then the price of Bitcoin drops 30% and I don’t pay the loan back, I’m still out $1M worth of Bitcoin for the sake of buying a $500K home am I not? So the only way this words if if the value of the coins you’re borrowing goes up? Do I have this right or am I way off?
I’ve seen DeFi rules that if Crypto drops 40%, you need to add funds or pay off entirely?
Thanks for the video! The problem I see that still doesn’t work for me with DeFi is the over-colateralization. Most of these lenders are 50% collateral such as with AAVE. If this were the case, you’d have to lock away over $1.2m for a $600k home. Most of these situations which I’ve seen, you can’t just pull out your collateral either, it’s locked up till the loan is payed off. So I guess, the “why” is still not answered for me
Very very brilliant 👍👍👍👍🙏🙏🇮🇩🇮🇩. Thank you Sir.
Really interesting, I don’t understand why people would lend into this system? It’s all based on an assumption the price of cryptos is going to go up? If it plummets you have worthless collateral?
Hopefully someone can explain
Hi Richard. I want to get started with this but want to JV. Could you help me please? Thank you. David
How much ethereum do you need to get a nice size loan?
Thanks for this video, I still have to learn more about this type of a loan, Richard you are out financial Messiah
How to get ethereum unstuck. Tried to send it to my wallet, showing complete, but transaction id does not exist in etherscan, and not showing on my wallet…how can I overcome this?