Fungibility vs crypto loans

[Willworkforxrp]

Hello.

Recently I deposited some XRP into a up and coming "bank".  I also deposited a few NEXO tokens if that helps.

I understand the big picture, I think.  Banks do loans and loans can produce interest and dividines for stake holders.

Traditional banks have not given interest to their members for many years. But when I withdraw money its typically new  crisp $100s.  Not the ones I deposited. And I never minded.

But..

Crypto is different  ..yo that's my crypto... The bank can't be loaning it out all over town.  I can only guess that based on deposits, the bank is allowed deeper access to larger vaults of crypto.  Somehow my crypto is just there to sit pretty and be cool? 

Please share your opinions of crypto loans and how you would feel if I ...just borrowed your private keys for alittle.  I'll give them back...I promise. :)

 

 

[BillyOckham]

5 hours ago, Willworkforxrp said:

Hello.

Recently I deposited some XRP into a up and coming "bank".  I also deposited a few NEXO tokens if that helps.

I understand the big picture, I think.  Banks do loans and loans can produce interest and dividines for stake holders.

Traditional banks have not given interest to their members for many years. But when I withdraw money its typically new  crisp $100s.  Not the ones I deposited. And I never minded.

But..

Crypto is different  ..yo that's my crypto... The bank can't be loaning it out all over town.  I can only guess that based on deposits, the bank is allowed deeper access to larger vaults of crypto.  Somehow my crypto is just there to sit pretty and be cool? 

Please share your opinions of crypto loans and how you would feel if I ...just borrowed your private keys for alittle.  I'll give them back...I promise.

 

 

I’m worried you might be in trouble there.  XRP are simply a balance.  They are totally fungible in that they are merely a balance.  They are not individually identifiable and do NOT have a serial number.

Regarding your key...  Once the ‘bank’ have your XRP they are in their account secured by their keys.  Not yours.  Your key controls the XRP account that you send from and therefore has nothing further to do with the XRP balance in the ‘banks’ account.  Hopefully they are honest and will send them back to you when you request a withdrawal.

 

I do hope this “bank” is a legit enterprise...  because there are a large number of scams out there tricking people into sending their XRP.

[Skippy]

Also, be sure that in the fine print they are actually holding your XRP. 

Banks usually don't "hold" your money. When you deposit money into a bank, you actually "lend" money to the bank. The bank can use the money as they wish. The number in your bank account representing your balance is not stored for YOU in some dark secure vault. 

[ruthdav]

Wow, crypto loans are such a hot topic these days. It is a highly complex subject. We start with the idea of which currency to use and how legitimate the bank is. It's the same with mortgages, for example. Before you take out a mortgage loan, you need to know a lot about the pros and cons, how legitimate it is, the risks, and many more. I say mortgage because I have a lot of experience with it, and I found it very difficult to find Mortgage Advice Sunderland - a legitimate company that I would trust. So I recommend you to be very careful.

Edited December 22, 2021 by ruthdav