The Co-founder and Head of Business Development at SALT Lending introduces us to the world of asset-backed cryptocurrency lending. Source
Startups like Salt Lending, Nebeus, CoinLoan and EthLend have all started a new industry by making loans to borrowers using bitcoin as collateral; with the world of bitcoin millionaires growing they will need to buy houses or cars and being able to secure a loan by putting up their bitcoin will allow then to make these purchases; securing a loan for $100,000 could cost a borrower 12 to 20 percent in interest and $200,000 in bitcoin as collateral; the loans could help bitcoin miners secure funding and potentially compete with P2P lenders; it is still early days but the potential is there as more byproducts are coming to light in the bitcoin craze. Source.
Salt Lending has written a blog post sharing the immense amount of interest in their blockchain backed loans; since launching on December 28th, 2017 they have issued $23 million in loans yet there is still demand of over $1.3 billion; the company is working on scaling and automating processes, but is focusing on addressing existing demand before adding new members. Source