Big risks loom large for those lending against bitcoin

A story by Brady Dale on CoinDesk published Friday covers some recent attempts by companies to lend against cryptocurrency holdings. The most recent example is a small outfit called Dominion Capital, which is now hoping to succeed where others have not. As described by Dale: “Essentially, the service would allow individuals and projects to borrow against either their own crypto assets (or those invested by supporters) rather than converting them directly to cash.” Loans would be at about 50 percent of the collateral. So if someone comes in with 100 bitcoin, they would only be able to borrow about half its value. At current prices, the total loan amount would…