I don't mind the pawnshops accepting crypto as a collateral, but what happens if the crypto prices drop severely?
Will the pawnshop sell the crypto and liquidate the loan when the borrower doesn't want this to happen? I think that the answer is yes.
Who can guarantee that the pawnshop owners won't find a way to scam their customers?
Also the KYC procedure would make this service undesirable for most borrowers.
The most important question is, why would anyone want to get a loan from a pawnshop when he(or she) has enough crypto?
Why not just sell the crypto for fiat?

This is stupid because we have an exchange already for trading, but using Bitcoin as collateral? Something that fluctuates a lot? It's better to come into an agreement with the pawn store owner base on the price action between the payback period or else it's going to be a bad idea.

This is just me though, some might make more sense out of the idea but I don't see how, you could get burnt easily if you use Bitcoin or any volatile assets like crypto currency as collateral.

Why not, at least the settling rules are more detailed about sharing profits or losses based on example scenarios like the 2nd comment. In turn, volatile collateral will burden one of the parties, the agreement on paper must be written in such a way.

Not yet

This isn't new to the service sector, but I've never heard of an incorporated pawnshop adopting this.

It depends. If conditions force me to pawn Bitcoin, I might pawn it, but of course, as DaveF said above, this agreement should be clear and should not be detrimental to both parties. Starting from the price of Bitcoin, where it is stored, the time of borrowing, interest, etc., it should be clear in the agreement, don't harm the borrower.
Because it is possible that the pawnshop has evil intentions and takes away all the Bitcoins that are pawned for their own interests and in my opinion this is the importance of a third party which will guarantee that all the Bitcoins that have been pawned are stored safely and cannot be withdrawn by the pawnshop or the customer before the contract expires.

Actually I do have always a cash reserve but instances happens and sometimes we cannot prevent from needing more than how much we have in reserve so yes this is why this post exist .

But like what I've said above , now I will consider what Dave says and yes never that I will pawn my precious bitcoin , I would rather borrow from all sorts that letting others have control and hold my Bitcoin.

I remember those threads that using their Bitcoin as collateral and in the end , they regret that action and I don't wanna be one , I will keep hold my coins no matter what Happen , I would rather pawn my house or car than pawning my Coin .
in this I may turn things differently in the future even if this took me a while finding best result .

I really wouldn't trust any platform to store my bitcoins. even if it's a pawn shop. Because it's a bit like storing bitcoins on a centralized Exchange. But for someone who has certain interests will probably do it. but I personally prefer to avoid it. And in my country there is no such thing. at least that I know. but I don't know if it already exists and I missed it.
But if in my country things like pawning Bitcoin start to open. then maybe there will be a number of people who pawn their bitcoins. and I think the person who did this must be in a desperate situation.

Doesn't work like that!
First, nobody is going to wait for 100% liquidation, most of them will do it at 110% to avoid a flash crash making them go in red.

Second, you've made a mistake, there is no profit.
You sent to those guys things worth $10k, you got $6000, so you've lost $4000. It doesn't matter what the price was going to be fast forward in time, at the moment when you took the loan you deposited coins worth 10k and you ended up with a loan of 6k, so, it's a 4k loss, not a 2k profit.
You could have simply sold those and you wouldn't have any problem.


Yeah right, except that's only happening in the meme area when we're in a bear market and people need to encourage each other.
In reality, one BTC is 30.5k and it was 25k a month ago and it was 65k two years ago, and when you're taking a USD-denominated loan all you have to worry about is about making the payments for the loan. Because if try to take advantage of this you're far better just using leverage and going trading.


Or, or...outrageous idea  take a loan from a bank!

Instead of using bitcoin as collateral when taking out a loan, I would probably choose the second option, which is to sell them within my required budget. Price volatility is a problem and this will certainly affect the agreement between the pawnshop and the collateral owner, and to avoid problems I tend to choose another option.

I don't really see the point of your question, but it might be different because deposito and collateral are completely different.

Makes sense, and also to prevent things that are not desirable. And if we really like our old bitcoins with minimal hurdles I don't think we need to pawn them or store them on any platform just to get something, and there are lots of other ways to cover what we really need even for emergencies.
I believe everyone has valuable items such as houses, cars or other expensive items that I think makes more sense to pawn to get what one wants. And if you have a lot of bitcoins, you can also sell some bitcoins according to your needs and this will be safer because you don't have to think about installment fees. And you can also buy back bitcoins when you have a lot of money, it's that simple.

I don't think anyone would do something like that to pawn Bitcoin in a pawnshop, if you are the type of person who believes that Bitcoin will be worth 100k$ each, it would be a stupid thing to do to pawn it in reality.

Maybe someone will make a Bitcoin mortgage at the pawnshop and if the pawnshop agrees, this person probably does not have enough deep knowledge about Bitcoin, this is the only reason I can see.