I see what everyone is saying and it's all good input. As to gentlemand's point, I believe the loan market exist just because of the ease of use versus traditional lending. With that of course comes the extra risks involved. I think it would be a lot easier to get a loan for something like christmas gifts from a lender versus a bank, especially for those who have poor credit or maxed out CC. Of course idk if those are the people I want to lend to either...
I personally am just trying to hold onto coins as long as I can so price dips won't affect me much. I just see it as an easier way to make some 'interest' on my coin. Plus if it's out of my hands I'm less likely to waste it.
I guess in a way it could function as a way to short the currency for people who believe it will crash.
Topic: How does rising BTC prices affect the loan market? - page 2. (Read 1346 times)
uh, for loans that are made in bitcoin and those bitcoin are directly used to buy something i see no problem
instead for the standard loan that are converted in fait and returned back, they usual are for a short time fram 2-3 days
for the time being where the price is skyrocketing, i would avoid giving bitcoin to someone else, unless the first case is true
instead for the standard loan that are converted in fait and returned back, they usual are for a short time fram 2-3 days
for the time being where the price is skyrocketing, i would avoid giving bitcoin to someone else, unless the first case is true
The idea of a bitcoin loan scares the crap out of me. I wonder what happened to people who took loans out in the fall of 2013 before it went crazy. Even after all the falls it was still nowhere near where it started out.
Any movement in either direction is going to cause some pain or inconvenience for someone. I don't really get why there's a loan market in the first place. It's a borderline guaranteed setup to create sadness somewhere along the line. The loans section makes for some occasionally gruesome reading. If it really has to be done then they should be locking it in using something like Coinapault, not depending on someone to take giant market moves on the chin.
I do some P2P lending and with the recent uptick in Bitcoin price something crossed my mind, how does this affect the rate of payback? Logically, anyone who uses the coin to convert to cash is going to have a harder time to pay it back. Of course, the opposite can be said for times where the price goes down.
My fear is that the price is going to go up now and this puts my loans at risk for default. Anyone have experience with this?
I think this depends greatly on the reputation of the borrower. It helps to communicate with the person you're lending money to and offer to make a deal if the price rises tremendously. My fear is that the price is going to go up now and this puts my loans at risk for default. Anyone have experience with this?
It would be even better to mention this before making the loan, rules for what happens if the price rises.
I do some P2P lending and with the recent uptick in Bitcoin price something crossed my mind, how does this affect the rate of payback? Logically, anyone who uses the coin to convert to cash is going to have a harder time to pay it back. Of course, the opposite can be said for times where the price goes down.
My fear is that the price is going to go up now and this puts my loans at risk for default. Anyone have experience with this?
My fear is that the price is going to go up now and this puts my loans at risk for default. Anyone have experience with this?
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