We Study Billionaires - The Investor’s Podcast Network BTC025: Bitcoin Security & Lending w/ Parker Lewis & Joe Kelly (Bitcoin Podcast)
May 12, 2021
Join Parker Lewis, a major influencer in the Bitcoin space, and Joe Kelly, founder of Unchained Capital, as they dive into the intriguing world of Bitcoin security and lending. They discuss the motivations behind high-interest borrowing in crypto, the challenges of collateralization, and the significance of self-custody. Parker shares his insights on the Lightning Network's potential impact on transactions, while Joe reveals the future direction of Bitcoin banking and the role of innovative financial services in enhancing security and user control.
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Bitcoin Lending Rates
- Bitcoin loans have high interest rates because lenders forgo potential Bitcoin gains.
- Unchained Capital doesn't rehypothecate Bitcoin collateral, reflecting true lending rates.
Typical Unchained Capital Loan
- Unchained Capital's average loan size is six figures, often for investments or real estate.
- Their average loan duration exceeds 12 months, with many clients renewing loans.
Interest Rate Trends
- Interest rate compression on Bitcoin loans has been minimal, despite its strong collateral status.
- Rates may decrease as institutional investors enter the market, but significant drops are unlikely.