Altcoins News

Story: Celsius Network (CEL) Earn, Borrow, Pay On Blockchain Devil in the Detail

By James Thorp

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Celsius announced that Celsius is now one of the largest investors of Bitcoin mining in North America kicking off an exclusive iHeartRadio partnership, allowing us to reach more…

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The community were like:  All three of these strategic moves will help the flywheel turn faster and deliver even bigger returns to our Celsius community. Proud to be Celcian.

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Celsius tried to talk to its believers by asking: What do you think about borrowing against your Bitcoin, instead of having to sell it?

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The community reaction about borrowing a loan on Bitcoin was like: When it goes down 85% and you get liquidated you'll wish you had sold.

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I think it’s fantastic. A lot of people seem to think it’s a bad idea. You just need to be smart about it. But I think it’s great. Thanks Celsius. Borrow against it and never sell.

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But still horrible idea, because you’ll get liquidated on a flash crash day. I don’t want to borrow, I want to earn.

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I think there have been times when I would have liked to have done so but I am scared of being liquidated so I won't. The idea is good, but the devil is always in the details.

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Depends on how collateral is handled. I have an ETH backed loan through Blockfi. I got a warning at 70% collateral that it’d partially liquidate at 80% to get me back to 50%.

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A good way to avoid paying capital gains tax.  Unless crypto capital gains are taxed 80%. Special treatment from governments.

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At what percentage is liquidation trigger? Borrowing against something so volatile is a bit risky in my opinion.

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When car and home lending in fiat or stablecoin using Bitcoin as collateral. That would be a game changer. Accelerated adoption.

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I'll say for a quick buck you're endangering your future's biggest asset and if it is liquidated in wild swings Celsius will just move on to is next goal.

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Well it's bought me a new vehicle and so far haven't had a margin call. Fingers crossed, but worst case I didn't over-leverage myself and have other assets to re-collateralize or…

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