According to the findings of a joint Arcane Research and Bistamp study, bitcoin’s unique characteristics, which include it being “the most portable asset”, 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,…

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Source: https://news.bitcoin.com/btc-branded-the-most-portable-asset-as-420k-bitcoins-used-as-collateral-in-q4-of-2020/