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Unlocking the Value of Digital Currencies with Crypto-Backed Loans
Several enterprises have developed services that let individuals and businesses use cryptocurrencies as loan collateral.
Currently, the value of all the bitcoin in the world is $154 billion. And, Bitcoin is only the most well-known cryptocurrency in the global economy. If we combine the value of bitcoin with other cryptocurrencies with a market cap of at least $1 billion, such as ethereum, Litecoin, and Ripple, the total value comes to approximately $210 billion.
Financially speaking, this value is under-leveraged. Unlike conventional assets, cryptocurrencies are not integrated into the mainstream financial system and can’t be used as collateral for loans and other financial instruments. The value of cryptocurrencies remains mostly untapped.
Several enterprises have identified this untapped potential and have developed services that let individuals and businesses use cryptocurrencies as collateral for loans. This article focuses on one of the newest entrants to the crypto-backed loans section: Bankera Loans. But, regardless of which crypto-lending platform you choose, there are a few key elements to consider in looking at crypto-backed loans.
