Before discovering bitcoin (Btc. Now, with the US dollar removal against Bitcoin, borrowing against Bitcoin rather than selling it has become a more viable approach.
“Before Bitcoin, my most successful investment was shortened Bolivar with dollars,” Di Bartolomeo told Cointelegraph in an exclusive interview at the consensus conference in Toronto, Canada.
“I borrowed the Bolivars and bought them dollars, holding a hard dollar and having a borrowing (position) in a weaker money,” he said.
The arrival of Bitcoin -supported loans means that investors can now effectively implement the same approach by using a more difficult money as collateral.
This is part of Motivation behind the launch of LEDNA Cayman Islands-based company that provides Bitcoin holders of the ability to access dollar’s liquidity without having to sell their BTC.
By borrowing against Bitcoin, “You usually do the same thing, but you are in effect holding hard money, which is Bitcoin, and borrowing (position) to the dollar, which is a weaker money,” says Di Bartolomeo, adding:
“It creates a bit of a good cycle that we see over and over again with real estate, with borrowing against your stock, borrowing against your gold, and thus Bitcoin is no different.”
Related: Bitcoin miners should pay costs of removing money – LEDN EXEC
The Crypto lending market with increase
LEDN has operated on a broader crypto lending industry that has grown over the last five years due to the rapid appreciation of Bitcoin, the advent of institutional investors and the growing utility of stablecoins.
In the fourth quarter of 2024, the Crypto Lending Market costs $ 30.2 billion, more than three times increase compared to two years before, according to Galaxy Research. However, the size of the general industry remains below the 2021 climax.
Researchers have linked a recent increase in decentralized financial applications, allowing users to borrow against onchain assets. This trend is further corroborated by a recent -only Cointelegraph reportdocumenting the growing amount of finances that is secured by the defi lending protocol.
Ledn ranked the top three centralized financial lenders (CEFI), with a loan book worth $ 9.9 billion by the end of 2024. Together, the top three CEFI lender – LEDN, Tether and Galaxy – account for 89% of the total market, showed the Galaxy report.
Magazine: Danger signs for Bitcoin as retail that left it in institutions: Sky Wee
