Is Bitcoin Really Disrupting Traditional Lending?

Simran

Bitcoin-backed loans let users borrow without selling BTC, unlocking liquidity while keeping exposure.

DeFi protocols like Aave and Compound allow borrowing without banks, reducing costs and increasing access.

Major banks including JPMorgan accept Bitcoin as collateral, signaling growing mainstream adoption.

Advantages include speed, transparency, global access, and options for unbanked or underserved users.

Challenges include BTC volatility, regulatory uncertainty, and security risks in smart contracts.

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