Would You Ever Pimp Out Your Bitcoin To Get A Fiat Loan?

in #bitcoin4 years ago (edited)

A couple of months ago, I found this potentially sketchy website. So of course, I clicked it.

It's called unchained capital.

Kind of like SALT lend, if you've heard of that.

I’ve never done anything more with the site other than poke at it dubiously with a metaphorical stick while raising one eyebrow.

I’m a little skeptic as to how it works.

A little worried that they’d take your BTC and then make like Bitconnect and run!

Imagine this scenario:

Say you want a $10,000 loan.

But you don’t want to have a credit check.

Because the credit check will ironically hurt your credit score.

You’re self-employed... so maybe you wouldn’t qualify for a loan anyway.

And honestly, you just don’t want to go through all of the BS that’s involved with getting a loan.

So, you give Unchained Capital about 2 bitcoins, for example.

Let’s say each BTC is worth $6,000, so you give them the equivalent of $10k bitcoin collateral based on today’s market price.

Because I think the minimum amount of crypto they accept has to = 10k in USD.

Then they do some funky stuff with your loan as the price of Bitcoin fluctuates and they give you money or you give the more money.

I’m not sure.

Read the website, because you’ll most likely understand this part better than I did. It wouldn’t be hard to do.

Then, basically, at the end of the 2 year term…you pay them $12,500 (the original 10,000 they loaned you plus 12% interest rate) and then they give your two bitcoins back to you.

Is there a catch? Do they only give back 10k worth of bitcoin?

So let’s say 2 years from now…

…bitcoin is worth 100k each or something crazy.

Instead of giving you your 2 full bitcoins, which would be worth 200k…do they just give you 10k worth of bitcoin?

‘cause that totally wouldn’t be worth it.

But if they give you your actual 2 bitcoins back...which is what it seems like they do...

Would you use a service like this?

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I don't see the use in that site if you're giving money for the same amount of money. If you have to pay them back later, it's like selling 10k in BTC for 10k USD, then buying back your BTC in installments, but you don't see any BTC meanwhile, until they give it back to you in bulk once you've finished paying?

That 's what I understood from your post. I'll take a look at the site.

Ok, I found this tutorial:

You can see that they insert that they want 250k USD, they put in 500k worth of BTC, and then they have to pay 2500/mo for how long? It says that the loan lasts a year, you'd expect that you'd pay 1/12 of 250k for that year, (20.8k/mo), so it means that you're paying over a longer time? When do they give you back your money?

And first of all, why would you give out 500k in BTC for 250k USD? I don't even see what the purpose is except getting quick cash for double your values.

Yep I think the purpose is just getting cash because you might need it if it's all tied up into crypto.

It's fun to see how many people are skeptical of sites like this and stuff. Thanks for posting the tutorial, that's kind of interesting. I hadn't seen that, but I do remember asking a customer support person some questions a while back just out of curiosity

Ha ha, this made me laugh. In my mind I could hear the alarm bells ringing:

A little worried that they’d take your BTC and then make like Bitconnect and run!

Animated GIF-source.gif

I love your meme with Professor Farnsworth from futurarama @nomadicsoul. I would be very wary of that site to be honest. Many hours of research is needed ;-)

hahaha just laughed at that meme you posted! lol

Glad you enjoyed the meme @nomadicsoul. I have just posted it somewhere else as well!?! A mystery... I hope you like a puzzle... and surprises ;-)

Hmm straight to the point - all I want to say here is that I looooove your white Steemit dress hahah :D

I haven't even read the post itself as I'm not really that much into these fancy crypto projects (tho I believe one can make lot of money if spent enough time researching)

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Thanks! I love the steemit dress, too! Mostly because I'm pretty excited that it went from an idea I sketched on a napkin to a real-life design!!

I haven't even read the post itself<<<< hahahaha thanks for your honesty! lol

What's the bahasa word for "sketchy"? :)

sketchasi?

Do they only give back 10k worth of bitcoin?
...etc

Those are good questions to to ask. I think if you (generalizing) cannot answer those questions then you shouldn't put your money there. It just seems too risky to use a service like this. Trust isn't exactly a pillar of foundation in the crypto community at the moment. Maybe in time we will be able to trust companies but we are not there yet in my opinion.

Good point! I'm pretty sure they give you back the actual bitcoin but I think I want someone else to test it first haha

Pimp my goldmatters?!

Lol thats my favorite so far

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