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A comment on Show HN: Collateralized Debt Agreements Using Smart Contracts and Virtual Cats. Parent comment

Re:Show HN: Collateralized Debt Agreements Using Smart Contr... by runeks on Friday January 19, 2018 @04:19AM (#16185016)
> So, for instance, in order to take out a 50k USD loan, you may need to put up 2.5-3x of the value in ETH, say 150K USD worth of ETH.

Why on earth would someone borrow $50k if they have $150k on hand?

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Re:Show HN: Collateralized Debt Agreements Using Smart Contr... by manibatra on Friday January 19, 2018 @07:55AM (#16185847)
I am guessing if the person borrowing believes that the asset that is being used as collateral ( ETH in this case ) will appreciate in value.
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