Arcane Research, bitcoin collateral, BTC, cash securities, collateral asset, collateral market, Crypto asset, crypto market, decentralized finance, government bonds, portable asset

According to the findings of a joint Arcane Research and Bistamp study, bitcoin’s unique characteristics, which include it being “the most portable assetâ€, are the likely contributing factors behind the increasing use of the crypto as a collateral asset.

Bitcoin Unmatched

This is evidenced by the study’s data which shows that approximately “420,000 bitcoins were used as collateral in various loans in the lending markets in Q4 of 2020.†This figure is nearly double the 213,000 bitcoins that were used as collateral in Q4 of 2019.

In another boost to the case as the best collateral asset, the study findings suggest when compared to traditional assets like “government bonds and cash-based securities,†the leading crypto asset is unrivaled. For instance, the findings assert that only bitcoin (BTC) “is an asset without both counterparty risk and credit risk.†Additionally, BTC is “available for trading 24/7, 365 days a year, all over the world.â€

In touting the superiority of some of these characteristics, the Arcane Research and Bistamp study states:

Bitcoin Share of Collateral Market Still Negligible

Meanwhile, despite the crypto asset’s immense potential, the study findings suggest that BTC only accounts for a minuscule of the $20 trillion collateral market today. To illustrate this fact, the researchers from Arcane Research estimates that “around 625,000 BTC are used as collateral in the crypto market today, or approximately $30 billion.â€

According to the researchers, this number is based on “estimations of collateral held in the derivatives market, in relation to bitcoin collateralized lending and tokenized BTC in decentralized finance (defi).†When compared to the total collateral market, this number suggests that “bitcoin collateral only accounts for 0.15% of the total collateral market today.â€

Nevertheless, the study still asserts that BTC’s share of this market is growing rapidly and that the potential for a trillion-dollar market remains.

What is your view concerning BTC’s share of the total collateral market? Tell us what you think in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Du lịch nhật bản, hướng dẫn du lịch Nhật và đánh giá địa điểm Nhật Bản Japan travel news, japan travel guides, japan holiday destinations and japan reviews

RELATED NEWS

Report: Document Shows Specific Bitcoin Miners in Xinjiang Instructed to Shut Down

An official notice stemming from the Changji prefecture government in Xinjiang details that officials from the Zhundong Economic-Technological Development Park must instruct bitcoin miners to shut down. China’s province of Xinjiang is a highly concentrated region of bitcoin miners and bitcoin activities at the park must cease by June 9, according to the document. Nevertheless, […]

Xem chi tiết: Report: Document Shows Specific Bitcoin Miners in Xinjiang Instructed to Shut Down

Mystery Whale Returns by Moving $35 Million — Miner Transfers 1,000 ‘Sleeping Bitcoins’ from 2010

Two months after the mystery mining whale from 2010 transferred a string of 20 block rewards with 1,000 bitcoin on March 23, it seemed as though the entity was finished, after spending 10,000 bitcoin total. However, it took 78 days for the whale’s next move, as another 20 blocks from 2010 were transferred on Wednesday […]

Xem chi tiết: Mystery Whale Returns by Moving $35 Million — Miner Transfers 1,000 ‘Sleeping Bitcoins’ from 2010

Crypto Payments App Bottlepay Is Now Available Across Europe

U.K.-based crypto payments provider Bottlepay has started offering services in other European countries. Users on the Old Continent will be able to send and receive even small amounts of euro and also buy, store and spend bitcoin with merchants accepting cryptocurrency. Bottlepay Promises Low-Cost Transactions in Euro and Bitcoin The Bottlepay app will allow Europeans […]

Xem chi tiết: Crypto Payments App Bottlepay Is Now Available Across Europe

White House Tech Advisor Tim Wu Keeps at Least $1 Million in Bitcoin

Tim Wu, top advisor to the Biden administration on technology and competition policy, holds more than $1 million in cryptocurrency, shows a recently filed financial disclosure. The antitrust expert, who is known as a prominent big tech critic, has in the past questioned the value of bitcoin. Top Biden Advisor Tim Wu Is a Bitcoin […]

Xem chi tiết: White House Tech Advisor Tim Wu Keeps at Least $1 Million in Bitcoin

White House Tech Advisor Tim Wu Keeps at Least $1 Million in Bitcoin

Tim Wu, top advisor to the Biden administration on technology and competition policy, holds more than $1 million in cryptocurrency, shows a recently filed financial disclosure. The antitrust expert, who is known as a prominent big tech critic, has in the past questioned the value of bitcoin. Top Biden Advisor Tim Wu Is a Bitcoin […]

Xem chi tiết: White House Tech Advisor Tim Wu Keeps at Least $1 Million in Bitcoin

Scammers Pick Bank Transfers Over Cryptocurrency, Australian Report Reveals

Investment scams have been by far the most common type in Australia recently, a new report by the country’s consumer watchdog has revealed. And while a growing number of Australians fall victim to fraudulent schemes involving cryptocurrency, bank transfers remain the scammers’ favorite way to extract money. Australians Lose $670 Million to Scammers in a […]

Xem chi tiết: Scammers Pick Bank Transfers Over Cryptocurrency, Australian Report Reveals

As Crypto Interest Winds Down Bitcoin’s Daily Transaction Rate Plummets to Two-Year Lows

Onchain data indicates that bitcoin transactions per day have plummeted to lows not seen since October 2018. Further, bitcoin transaction fees have dropped 93% after touching a high of $62 per transaction in April 2021. Bitcoin Daily Transaction Rate Dips by 35%, Google Trends Data Shows Interest Has Dropped Since May While bitcoin (BTC) prices […]

Xem chi tiết: As Crypto Interest Winds Down Bitcoin’s Daily Transaction Rate Plummets to Two-Year Lows

Bitcoin.com Games Player Gets Lucky Big Time, Wins 5 BTC on Popular Online Slot

Player cashes out approximately $180,000 after winning it on Sun of Fortune: Hold the Jackpot! Multiple Wins Result in a Total Bank of Over 5 BTC The weather was perfect, with just enough sunshine to warm up one lucky player starting a gaming session on the newly released game, Sun of Fortune: Hold the Jackpot. […]

Xem chi tiết: Bitcoin.com Games Player Gets Lucky Big Time, Wins 5 BTC on Popular Online Slot

Two-Fifths of Australian Millennials Prefer Crypto Investments Over Real Estate

Out of Thousands of MIT Students That Got Free Bitcoin in 2014 – 6 Year Holders Saw 13,000% Gains

Clean Water Nonprofit Reveals Celebrity-Fueled Bitcoin Water Trust Initiative

US Pharmacy Chain Pharmcorx Accepts Cryptocurrency for Fast Covid Testing

Tony Hawk Purchased Bitcoin in 2012 After Reading About the Silk Road Marketplace

South Korea’s Financial Regulator Holds Closed-Door Meeting With 20 Crypto Exchanges

Crypto Consolidation Continues — Bitcoin’s Attempt to Rise Above Psychological Levels Falls Short

Bitcoin Dips as Elon Musk Tweets Broken Heart Emoji

Other Articles