With Bitcoin, there is the problem of volatility. As collateral, this will cause an issue when the market does major pullbacks
This is probably my area of concern, i've been wondering how the issue of volatility will be resolved, since fiat being used especially for collateral beforehand is less volatile than bitcoin. I guess there might still be issues irrespective of the underlying solution by crypto enthusiasts.
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The larger the market gets, we can expect less volatility. Often, there are terms where more collateral is required if it falls below a certain level.
This could be done, even with smart contracts.
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Got it, so the larger the market?
This is quite technical though, im glad you to clarify it.
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