Imagine banks don't fully trust cryptocurrency yet! This means crypto companies have trouble borrowing money easily. But, there's a clever solution!
Businesses are using their Bitcoin (BTC) as a promise to pay back loans in US dollars. Think of it like using your toy car as collateral to borrow money from a friend.
- Bitcoin is used as a guarantee for loans.
- These loans can offer good returns, better than some risky investments.
- It’s a way for crypto and regular banks to work together better.
| Item | Fact/Prediction |
|---|---|
| Loan interest rates | Higher than usual, but lower risk than junk bonds. |
| Bitcoin's role | Used as security for the loan. |
| Opportunity | For both Crypto and traditional finance to connect. |
