Comment Dumb question (Score 4, Interesting) 73
I am not a crypto wizard so I have an honest question. If I have the full equivalent of the loan in liquid assets to use as collateral, why take the loan? Why not use the already liquid assets for whatever purpose the loan is fulfilling? I take a loan when I need more money than I have available and use collateral that is less easy to liquify and the lending institution is willing to accept it.