Hacker News Reader

> 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?

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.