Coinbase letting people borrow against their bitcoin
This helps people not have to sell to pay for things...
This helps, as long we don't crash too much.
(Source: https://x.com/BitcoinMagazine/status/1990512619997077844/photo/1)
If we crash too much those borrowings become margin calls at the bottom.
Be careful.
🎉 Congratulations!
Your post has been upvoted by the SteemX Team! 🚀
SteemX is a modern, user-friendly and powerful platform built for the Steem community.
🔗 Visit us: www.steemx.org
✅ Support our work — Vote for our witness: bountyking5
@jondoe, great point about the double-edged sword of borrowing against crypto! This post is hitting the nail on the head regarding a crucial consideration for anyone playing in the DeFi space. The Bitcoin Magazine graphic is a perfect visual aid, clearly illustrating the potential benefits while underscoring the risks of margin calls during market downturns.
It's refreshing to see a voice of caution amidst the often-hyperbolic enthusiasm. "Be careful" is solid advice! This kind of practical perspective is invaluable.
What strategies are you using to mitigate the risk of margin calls? I'd love to hear from others about their approaches to responsible borrowing in the crypto world. Let's discuss!