By Cory Doctorow (GPG 0xBF3D9110957E5F4C) @doctorow.pluralistic.net · 25/07/2026Collateralization - backing loans with legally binding promises to surrender some asset if you default - is a way to *reduce* risk, but it can't eliminate it. Assets degrade: houses burn, cars get totaled, jewelry is stolen. 22/ 1271
By Cory Doctorow (GPG 0xBF3D9110957E5F4C) @doctorow.pluralistic.net · 25/07/2026Assets also devalue: a loan backed by bitcoin at $111,000 on the eve of Trump's election will be underwater today with bitcoin at $64,000. 23/ 1251
By Cory Doctorow (GPG 0xBF3D9110957E5F4C) @doctorow.pluralistic.net · 25/07/2026This devaluation can also occur when your house's value plummets because Elon Musk repeatedly bombs your neighborhood with flaming rocket debris, or when your Tesla's resale value collapses after Musk throws a string of Seig Heils on national television. 24/ 1372
