[2018-04-13] Japan’s GMO Wants to Borrow Bitcoins from Customers

Kakmakr

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Quote from: jjacob on April 13, 2018, 05:03:37 PM

This is a bad idea and would be the start of a fractional reserve system in Bitcoin. Thankfully, small investors don't have access to this lending program. The lending is in blocks of 10 BTC, so only mid-sized players will be able to take part. The interest / rental fee of 5% p.a. is sufficient to tempt investors into considering this program.

I do not get it, how can this be a fractional reserve practice when there is no new coins being generated like the fractional reserve system in the Banking industry? When you borrow coins to someone, they cannot create new coins out of those coins. Even if you borrow those coins and you receive interest, then the interest is not seen as "new" coins being generated.

I see the glass as being half full.... this creates a demand and it is hoarded. ^smile^

CryptoBry

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Quote from: tyz on April 13, 2018, 04:50:32 PM

Japan’s GMO Wants to Borrow Bitcoins from Customers
GMO Coin, the cryptocurrency subsidiary of Japanese internet giant GMO, has announced a new service to allow customers to lend their bitcoins to the company.
https://news.bitcoin.com/japans-gmo-wants-to-borrow-bitcoins-from-customers/

I can see that this can spur money people or organizations to buy more Bitcoin to be part of the GMO program. I am all excited on how Japan is really taking Bitcoin seriously and they are doing it silently with less fanfare and controversy. I am sure that this offer is much better than putting their money in any bank.

Siren

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Quote from: jjacob on April 13, 2018, 05:03:37 PM

This is a bad idea and would be the start of a fractional reserve system in Bitcoin. Thankfully, small investors don't have access to this lending program. The lending is in blocks of 10 BTC, so only mid-sized players will be able to take part. The interest / rental fee of 5% p.a. is sufficient to tempt investors into considering this program.

yups %5 per year is quite big if you lend big digits of bitcoin unto the company,luckily small players cant participates on this one..because if yes more holders will lend their bitcoin to the said offering for a sureball annum income spcially in this kind of market now that assures no one if they can earn or continuously losses theyre coins in portfolios..

On the other hand this is a good option for mid and big players to invest and let the small members circulate the market prices

jjacob

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This is a bad idea and would be the start of a fractional reserve system in Bitcoin. Thankfully, small investors don't have access to this lending program. The lending is in blocks of 10 BTC, so only mid-sized players will be able to take part. The interest / rental fee of 5% p.a. is sufficient to tempt investors into considering this program.

tyz

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Activity: 3360

Merit: 1533

Japan’s GMO Wants to Borrow Bitcoins from Customers
GMO Coin, the cryptocurrency subsidiary of Japanese internet giant GMO, has announced a new service to allow customers to lend their bitcoins to the company.
https://news.bitcoin.com/japans-gmo-wants-to-borrow-bitcoins-from-customers/

Topic: [2018-04-13] Japan’s GMO Wants to Borrow Bitcoins from Customers (Read 129 times)