Bitcoin backed loan services hints Bitcoin tends to Gold nature: Goldman Sachs
With time, Bitcoin is achieving the nature of a reserved currency like Gold, which comes with many advantages and benefits.
Bitcoin completed 13 years of life in the digital world of the internet and also moving forward with an immortal future. In the last 13 years, Bitcoin saw huge numbers of downfall in terms of interest, adoption, ban, and many more road bumps in the path of adoption. These things made bitcoin mature enough to serve its qualities more likely to Gold.
At present, huge numbers of trusted, Licensed and regulated crypto companies are available, which provide crypto-backed loans. The majority of the crypto companies offer the highest LTV(Loan to value) ratio on Bitcoin funds holding, which is enough to show that Bitcoin is highly matured over all other crypto assets.
In the current situation, not only crypto companies but also many other non-crypto companies are giving Bitcoin-backed loans under full regulatory approval.
Last week, Goldman Sachs, an American multinational investment bank and financial services, announced its Bitcoin-backed loan to its clients.
Under the Bitcoin loan plan of Goldman Sachs, clients will be able to secure easy loans, where Bitcoin will be used as collateral assets.
With this initiative, Goldman Sachs became the first-ever major US bank to provide Bitcoin-backed loans.
Bitcoin price Volatility vs Bank
The majority of the banks keep their services away from Bitcoin because of volatility in the price. However not all banks hate bitcoin but the number is still very big. Only very few numbers of banks are currently providing Bitcoin-backed loans or related services.
Last month, MacroStrategy, a subsidiary of Bitcoin Bullish firm Microstrategy, secured a significant amount of loan to buy Bitcoin. For the loan, Microstrategy used Bitcoin holding as collateral.
Read also: Majority of crypto companies looking to provide fiat pair trade besides Stablecoin
