We have come a long way since the first block of Bitcoin(BTC) blockchain was mined on 3 January 2009 by the anonymous founder Satoshi Nakamoto. Since then Bitcoin has seen many ups and downs relating to various issues like security, no control of any central party, criminal activities and many more.
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Even after all these downsides Bitcoin still proved itself and keep on attracting more and more institutional investors from all around the world, slowly making its way to become a top asset class of the decade. Venture capital firms around the world are seeing this an early opportunity to hop in early by buying Bitcoins to hedge against inflation.
Today we have come to a point where renowned crypto exchange- Coinbase is allowing their US customers to get a loan backed by Bitcoins. Going forward we would discuss how big this news could be for the Bitcoin maximalist and also advantages related to this big announcement.
This Wednesday San Francisco-based crypto exchange Coinbase announced that they would be providing fiat loans to their US retail customers. Anyone could get a loan by just filling a form without requirement of any other time-consuming formalities like the traditional loan. The loans would offer and interest rate of 8% with maximum of $20,000 limit per customer for a time period of a year or less.
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To conclude, according to me this is a very big news as for the US Bitcoin holders as it would not only give people a chance to borrow against their bitcoin without spending them especially during the time of a bull market. Coinbase also stated unlike others they wouldn’t be reinvesting the collateralized bitcoins anywhere else which would ensure the safety of the funds.