Topic: How would loans work in a Bitcoin economy (Read 1010 times)
When you buy a cryptocurrency or a bitcoin, you are the one who manages or takes control of your funds because it is decentralized means no organization nor the government has control of it, that is why you can't borrow bitcoin just like a traditional loan in banks. You can only take a loan on people who also buy bitcoin by visiting this Lending section in this forum.
Hello everyone,,
To my understanding people deposit money into banks and the banks use that money to give out loans. But with Bitcoin everyone is essentially their own bank, meaning there wouldn’t be anyone to give out traditional loans. My question is where would people go to get loans in a Bitcoin economy and how might those loans work?
It will happen if there will be a person who are willing to give loans using bitcoin. But i think it needs more transparency because you can't give loan if you don't have access to their accounts or just know the persons credentials. Also making bitcoins loans is very risky and it is not advisable because you have a tendency to lose and get into debt. To my understanding people deposit money into banks and the banks use that money to give out loans. But with Bitcoin everyone is essentially their own bank, meaning there wouldn’t be anyone to give out traditional loans. My question is where would people go to get loans in a Bitcoin economy and how might those loans work?
Hello everyone,,
To my understanding people deposit money into banks and the banks use that money to give out loans. But with Bitcoin everyone is essentially their own bank, meaning there wouldn’t be anyone to give out traditional loans. My question is where would people go to get loans in a Bitcoin economy and how might those loans work?
there are already existing loans offered here in Bitcointalk.org and also they are given big amount of loans recently and some ended up as scamming the person who gives loan.To my understanding people deposit money into banks and the banks use that money to give out loans. But with Bitcoin everyone is essentially their own bank, meaning there wouldn’t be anyone to give out traditional loans. My question is where would people go to get loans in a Bitcoin economy and how might those loans work?
it has been mentioned in the first post about the load thread.
But now there are changes that they required Collateral because of these people who did not pay their debt and instead gone here in forum.
I don't see much changes speaking about the lending threads in the forum,
The loan service are divided into two, the secured loans and the unsecured loans, and what I seeing is that majority of the loans belong to the unsecured loans, so this means lenders are still trusting the borrowers which are the forum members with reputation or those who pass in their requirement.
Probably it's different outside as legality has to be established when borrowing.
Hello everyone,,
To my understanding people deposit money into banks and the banks use that money to give out loans. But with Bitcoin everyone is essentially their own bank, meaning there wouldn’t be anyone to give out traditional loans. My question is where would people go to get loans in a Bitcoin economy and how might those loans work?
there are already existing loans offered here in Bitcointalk.org and also they are given big amount of loans recently and some ended up as scamming the person who gives loan.To my understanding people deposit money into banks and the banks use that money to give out loans. But with Bitcoin everyone is essentially their own bank, meaning there wouldn’t be anyone to give out traditional loans. My question is where would people go to get loans in a Bitcoin economy and how might those loans work?
it has been mentioned in the first post about the load thread.
But now there are changes that they required Collateral because of these people who did not pay their debt and instead gone here in forum.
You came up with a nice question.
For me, I don't really see Bitcoin as a bank itself because as far as i know, its only a digital wallet with great features that can help us manage our financial transactions virtually.
And regarding the Bitcoin loans, though a lot here says that we can really have a loan, as offered here in some sites. But, I think its more complicated because of being decentralized of Bitcoin and other cryptocurrencies...I suggest that maybe you would do some research before engaging to a Bitcoin loans and just try to simply do bounty campaign jobs, so you could earn, trade and invest instead of taking some loans.
For me, I don't really see Bitcoin as a bank itself because as far as i know, its only a digital wallet with great features that can help us manage our financial transactions virtually.
And regarding the Bitcoin loans, though a lot here says that we can really have a loan, as offered here in some sites. But, I think its more complicated because of being decentralized of Bitcoin and other cryptocurrencies...I suggest that maybe you would do some research before engaging to a Bitcoin loans and just try to simply do bounty campaign jobs, so you could earn, trade and invest instead of taking some loans.
Crypto lending and loan concept are possible if It will be facilitated by a P2P platform Crypto Bank which will serves as a direct link between lenders, borrowers, and the related services – managers, analysts, insurance companies, funds, trading terminals etc. There are some Crypto banks that are introduced thru ICO before but i don't know if their project is a success.
We never see them succeed because if they are successful, they might already be popular now. I also saw a lot of ICO in the past about the said services, but when the market was bearish, it looks like these projects were already forgotten.
I also interest bitcoin, It's safe and valuable than ordinary loans, however we need some extra knolage to handle bitcoins, It really safe but it value changing time to time, So I suggest first study tutuapp, appvalley well about bitcoins and search bitcoins loans in search engine you can find lot of details from internet.
Crypto lending and loan concept are possible if It will be facilitated by a P2P platform Crypto Bank which will serves as a direct link between lenders, borrowers, and the related services – managers, analysts, insurance companies, funds, trading terminals etc. There are some Crypto banks that are introduced thru ICO before but i don't know if their project is a success.
the method or concept of the loan that is in bitcoin I think bitcoin is only a tool for payment so that loans are easier to happen and transactions will be easier, bitcoin loans are dependent on lender policies which will usually be easy and simple.
Hello everyone,,
To my understanding people deposit money into banks and the banks use that money to give out loans. But with Bitcoin everyone is essentially their own bank, meaning there wouldn’t be anyone to give out traditional loans. My question is where would people go to get loans in a Bitcoin economy and how might those loans work?
To my understanding people deposit money into banks and the banks use that money to give out loans. But with Bitcoin everyone is essentially their own bank, meaning there wouldn’t be anyone to give out traditional loans. My question is where would people go to get loans in a Bitcoin economy and how might those loans work?
As you've said everyone is their own bank with the use of bitcoin so the process of loans here are peer to peer. Some people agrees to loan their bitcoin or crypto to someone through some agreements. The interest will also be the loaned crypto though it might be high if you convert it to fiat value.
Loans are easy as long as there are collaterals existing. Even cryptocurrency is a world full of unknown people and credentials, as long as there's a thing you can hold for safe keeping, loaning through it would be possible. Nothing to worry about.
Yes, in the bitcoin economy referred to by the OP, loans in crypto will be difficult because of unstable prices. But if he has seen a lot of activity in the crypto world, then loans in the crypto world can indeed be done and a guarantee is the main requirement and there is an agreement that must at least be agreed upon before making a transaction because of the unstable prices. So in this case the loan can still be done as long as all the requirements can be met and there is agreement from both parties. Hello everyone,,
To my understanding people deposit money into banks and the banks use that money to give out loans. But with Bitcoin everyone is essentially their own bank, meaning there wouldn’t be anyone to give out traditional loans. My question is where would people go to get loans in a Bitcoin economy and how might those loans work?
To my understanding people deposit money into banks and the banks use that money to give out loans. But with Bitcoin everyone is essentially their own bank, meaning there wouldn’t be anyone to give out traditional loans. My question is where would people go to get loans in a Bitcoin economy and how might those loans work?
I don't think so that is the case with the bitcoin.
It is even easier with the bitcoin to give out loan when it comes to the interest rates, flexibility of amount to be levied and ways of transacting. I mean it is far easier to have escrow with nominal fees who will be your securer of funds and with nominal transaction fees of network you can send as much amount as you want.
"Yes everyone is bank but not everyone is having sufficient amount to be a bank"
Bitcoin loans could be very risky becase of volatility so if you don't have some income source in Bitcoin at the end you might find yourself in situation that you need to return much more than you have borrowed. Of course the amount in Bitcoin will be the same but if you have to spend fiat to return Bitcoin loan that is bad.
Unfortunately, persons providing loans and lending funds are forced to act at their own risk. Taking advantage of this, fraudsters often pay a certain amount of small loans in cryptocurrency, raising the rating in the list of borrowers, until the opportunity arises to get a larger loan. In addition, there are quite a lot of tips on passing verification on fake documents on the forums.
Loans are easy as long as there are collaterals existing. Even cryptocurrency is a world full of unknown people and credentials, as long as there's a thing you can hold for safe keeping, loaning through it would be possible. Nothing to worry about.
Been searching little more on this topic. Now we have some that are giving away loan in crypto, but for me this can be huge gamble but some can take this very seriously. Why if you loan on crypto example bitcoin with price of 10000 dollars sell it into dollar and then you have drop on price to let say 8000 they you are good for 2000. Also for price jump. This is from this part to me very risky.
Many will ask if this is legal or not but from some point this will be normal. As cryptocurrency continues to make inroads into mainstream fin-tech and creating its own products we will continue to see improvements in this field. While I'm personally not comfortable handing over cryptocurrency to 3rd parties, from my perspective this is huge risk. Also I do think this is still a proof of concept stage that can be little more adopted. As we move to a more decentralized approach where these loans can be handled on a Smart contract basis and remove the need for handing over your funds but locking it in a decentralized manner.
Many will ask if this is legal or not but from some point this will be normal. As cryptocurrency continues to make inroads into mainstream fin-tech and creating its own products we will continue to see improvements in this field. While I'm personally not comfortable handing over cryptocurrency to 3rd parties, from my perspective this is huge risk. Also I do think this is still a proof of concept stage that can be little more adopted. As we move to a more decentralized approach where these loans can be handled on a Smart contract basis and remove the need for handing over your funds but locking it in a decentralized manner.
Global bank strategy can also be use to loan individual Bitcoin, laws and regulation will be in place to ensure both parties interest is taken into consideration, escrow can be use and a percentage will be use as interest for the borrower, this will be base on tine of repayment.
So, why the involvement of banks again in cryptocurrency loan when this can be carried out easily in a peer to peer loan group. If you go to the loan section of this forum, you will see how many people are requesting for loan and being grated loan amongst themselves with the necessary collateral being giving to ensure that the loan has been paid, and since I have been visiting there, I have never seen any one that has loaned complain of being duped or not being paid because everything is well spelt out there. Banks always want to out their hand in everything and if they still out their hand in cryptocurrency load also, they will operate it still the same way they have been operating their traditional loan when they give it out.
Bitcoin loans could be very risky becase of volatility so if you don't have some income source in Bitcoin at the end you might find yourself in situation that you need to return much more than you have borrowed. Of course the amount in Bitcoin will be the same but if you have to spend fiat to return Bitcoin loan that is bad.
Global bank strategy can also be use to loan individual Bitcoin, laws and regulation will be in place to ensure both parties interest is taken into consideration, escrow can be use and a percentage will be use as interest for the borrower, this will be base on tine of repayment.
ive seen a thread before about bitcoin banks . its a kind of bank that accept bitcoin .
when people deposit on it , the these bitcoin banks might also offer bitcoin loans to others . that should how bitcoin loaning works .
other one that i can think off , is those lenders only uses thier own money converted to btc so that they can run a bitcoin lending business . there are also what you called a bitcoin investing platform , where people put thier btc on it . we never know if these platforms use the btc deposited on them and use on other business like lending .
Crypto loan already even exists, we have individuals that have been practicing it in this forum, and then we also have some banks that they call crypto banks that are already loan facilities. There is this thing about cryptocurrency, it gives an opportunity to virtually everyone, from the government, to banks and to the users, and everyone is able to accomplish something great from cryptocurrency. when people deposit on it , the these bitcoin banks might also offer bitcoin loans to others . that should how bitcoin loaning works .
other one that i can think off , is those lenders only uses thier own money converted to btc so that they can run a bitcoin lending business . there are also what you called a bitcoin investing platform , where people put thier btc on it . we never know if these platforms use the btc deposited on them and use on other business like lending .
One would not really care to know about how the cryptocurrency load works, except maybe it is of interest to one too to start cryptocurrency load business, and by the time one makes deep research about it and write some feasibility study about it, maybe op would know exactly how it works which is beyond just discussion on this forum.
ive seen a thread before about bitcoin banks . its a kind of bank that accept bitcoin .
when people deposit on it , the these bitcoin banks might also offer bitcoin loans to others . that should how bitcoin loaning works .
other one that i can think off , is those lenders only uses thier own money converted to btc so that they can run a bitcoin lending business . there are also what you called a bitcoin investing platform , where people put thier btc on it . we never know if these platforms use the btc deposited on them and use on other business like lending .
when people deposit on it , the these bitcoin banks might also offer bitcoin loans to others . that should how bitcoin loaning works .
other one that i can think off , is those lenders only uses thier own money converted to btc so that they can run a bitcoin lending business . there are also what you called a bitcoin investing platform , where people put thier btc on it . we never know if these platforms use the btc deposited on them and use on other business like lending .
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