New Report Explains Risks of Bitcoin Lending and Rehypothecation

Lending and rehypothecation are complex topics. But they are foundational to understanding the value of Bitcoin's transparent protocol design and how lending fits into the future of a Bitcoin economy. 

In this new report from Hoseki, Understanding Lending & Rehypothecation explores both of these financial concepts in detail while breaking them down in the simplest terms possible.

From the report: 

"So, the question becomes: how does rehypothecation in particular fit within the digital asset space which has no lender of last resort? The short answer is it may not. But given the nature of incentives it is most likely something we will have to live with."

Hoseki believes understanding how the Bitcoin economy should function while adequately preparing for alternate scenarios of how it will operate are important, especially given the extent these two similar yet different concepts and the level of risk they affect in financial systems of all kinds. 

Read the full report embedded below. Or click here to view it in a separate window.