So wait. You are mad because people won't loan money to someone who wants to use the loan to gamble?
here we go,
first off as i said im not mad, and second - so you rather i spend the bitcoin on something worse like a hit on someone? yes i know gambling is not the best option, i know, but there getting there loan back + 20%, if i gamble it or if i bought a rig. dont see the big problem there? they get there money correct?
The fact that you gamble brings into question your judgment, which is a very important factor when we decide who to loan to. Someone could be rich as hell, give out his home address and everything, but I still wouldn't lend to him if I felt he had poor judgment. When I loan to someone, I need to evaluate based on the little information that I have how likely I am to get my money back.
One succinct way of putting some people's criteria is that "if you need a loan, I'm not going to give you one". That is, if you actually _need_ a loan for something, it means you're probably not the kind of person I want to lend to, because you were unable to plan your finances in order to not need to ask for money. On the other hand, if you want to borrow money to take better advantage of a money-making opportunity like arbitrage or an investment in a new venture, I'm a lot more willing to give you a chance.
Take common financial advice: it's generally considered stupid to take out a loan to buy a big-screen TV. On the other hand, if you're taking a loan to buy new equipment to expand your business, that's good. Other things equal, I'm going to think the latter kind of person is more responsible and will lend to them.
So yeah, what you do with the money is your business, of course, but when we try to build a mental risk model of borrowers, we'll probably avoid people who look irresponsible. There's also the "condoning bad behavior" aspect of things: any institutional gambling puts the odds in the house's favor, meaning you're getting screwed and you're choosing to get screwed. I don't want to have any part in helping you get screwed more, regardless of whether you want to get screwed. I don't want to help you buy coke or heroin either, or any other bad habits. It's not that I'm going to actively prevent you from doing it, but I don't want a part in it.