Thank you, gonna read in a bit
......cut.....
So, for example, we all expect DRK to appreciate dramatically against BTC and the USD. If you took out a loan in DRK, converted it to USD and then two years later had to pay the DRK back (so you had to then get USD and convert it back to DRK), yes you're likely to be seriously disadvantaged and find you have to payback way way more USD than you originally received when you converted your borrowed DRK. But, think about if things are far more progressed along in terms of adoption and you can buy many goods and services in DRK, then it's a different situation altogether because if you don't convert your borrowed DRK into anything else, but just keep it as DRK to use, then provided you're making money within the DRK economy (i.e. spending DRK, getting paid in DRK) any loan will only be subject to whatever interest you agreed on under the terms and what you pay back will just be the original DRK (principal) plus interest..... cut......
I don't think it has anything to do with fiat. At the moment the growth is from more and more people participating in the crypto economy. It's currently pretty balanced, with probably a little inflation due to most cryptos producing more coins now than in the future. The hope is that by the time the inflationary aspects of cryptos slow down, the rewards will also be limited. Still, it's the supply and demand of coins I'm talking about, and it doesn't matter if you ever touch fiat. Unless demand is saturated, you'd be in trouble with a loan. Why do I worry? Because this is the coin of the unbanked world! They aren't even aware of it yet! If this works, when they start to invest in coins, demand is going to explode!
I guess it just will have to mature and stabilize, if possible, before such loans will be possible. Or else some other mechanism will have to be put into place. I'm sure someone will come up with something.... I'm just not bright enough in economics, LOL
Ugh, gotta run again
Will catch up later I hope, looks like so much good discussion going on!
I'm not sure I'm understanding you Tante. How would you be in trouble with a loan if you're not converting DRK into something else? If I lend you 1000 DRK at 10% interest on initial principal for 5 years (not a very good deal really), you'll need to pay me back the 1000 DRK plus 100 DRK for each year, so 1500 DRK in total. That's not much different to a personal loan from a bank or finance company. Supply and demand of the coins doesn't come into it at all. It's only if you convert into BTC or fiat (or something else) that you're exposed to potential risk that the DRK you borrowed massively increases in value against the asset you converted the DRK into and you then have to fork out a whole lot more of that asset to convert back into DRK at settlement time. Supply and demand can only be measured (or observed) when the asset is measured against the value of another asset it can be bought or sold for.