That is like taking out a loan from Peter to pay off Paul. It just doesn't and will not work for anyone who is trying to do that in the long run. You will just end up with much more debit in the end.
Topic: Can bitcoins stop bad debts - page 3. (Read 1603 times)
Borrowing bitcoins to pay off debts is not advised in the slightest.
That is like taking out a loan from Peter to pay off Paul. It just doesn't and will not work for anyone who is trying to do that in the long run. You will just end up with much more debit in the end.
That is like taking out a loan from Peter to pay off Paul. It just doesn't and will not work for anyone who is trying to do that in the long run. You will just end up with much more debit in the end.
With the debt crises in the eurozone, bitcoiners have been advocating the use of bitcoin in place of fiat. I don't think that will solve the problem on ground, people will always borrow money whether cash or bitcoins. What do you think?
It's hard to borrow bitcoins because if you borrow say, a mortgage of 200,000 and bitcoins triple, sure you may have paid 10,000 bit you now owe 590,000 and the house is still not worth anything close to that.
For short-term loans it's fine (depending on the time period) because it's usually fairly predictable in the sense that a normal swing is about 10%. It's when places get hacked or there's a lot of price speculation assuming it's going to go in because of X, Y, and Z, you have issues with repayment.
Now if you loan bitcoins, but based on a USD / Euro amount, you yourself ar at risk because if the prices go up you might as well have just held onto your bitcoins!
Its much harder to borrow real Bitcoins you can use on blockchain, as you cannot use fraction reserve principes banks using with debt based fiat currencies (loan much more than they actually have). Bitcoin is different from fiat because you can use only what you really have, or you borrowed the Bitcoin from someone who really had it.
So if most switch to Bitcoin in future because Bitcoin really represent what sound money is all about, debt based systems become unsuistable anymore.
So if most switch to Bitcoin in future because Bitcoin really represent what sound money is all about, debt based systems become unsuistable anymore.
With the debt crises in the eurozone, bitcoiners have been advocating the use of bitcoin in place of fiat. I don't think that will solve the problem on ground, people will always borrow money whether cash or bitcoins. What do you think?
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