Loans against Physical Bitcoins

[mindragon]

Does anyone know of people wanting to have their Physical Bitcoins as collaterals against a loan?

Likewise, I have heard of collateral lenders doing some loans against Ballet cards but those are usually like 0.001 BTC. There are others like Casascius coins that have been sold by auction houses. Those auction houses consider the physical bitcoins as a collectible class of item for the purposes of an auction. This means physical bitcoins are treated as a collectible. Which means, it can have loans against it like fine art has loans.

Are there other lenders / investors out there lending right now against physical bitcoins as a collectible?

I was wondering if anyone has come across anything about either one of these two approaches towards physical bitcoin custody as a collectible. It would be helpful for a research report that I am doing right now for a class.

Thanks.

[Ambatman]

You can move your post to the collectibles board https://asktom.cf/index.php?board=217.0
It can be found in marketplace under goods.
There your questions would be properly answered. Imo It can though my knowledge there is limited.
Check out the board for more details.

[retaur]

I think loans against physical Bitcoins are very niche. I could contemplate the appeal but the coins themselves are quite illiquid and are worth quite a bit more before being peeled than they would be once peeled..

Unless you're requesting a loan with someone who wants to acquire it that could offer the coins loaded value then I don't think it's viable yet.

I'm surprised tokenised fractions of coins aren't a thing yet though.

[polymerbit]

I think loans against physical Bitcoins are very niche. I could contemplate the appeal but the coins themselves are quite illiquid and are worth quite a bit more before being peeled than they would be once peeled..

Unless you're requesting a loan with someone who wants to acquire it that could offer the coins loaded value then I don't think it's viable yet.

I'm surprised tokenised fractions of coins aren't a thing yet though.

This is a very valid point. As the BTC price rises, the loaded amounts will typically go down on modern collectibles. The value of the collectible can be a significant multiple of the loaded balance.

Then you also have the problem of verification. You'd need to get the collectible authenticated.