How do you "lend" BTC? Once the transaction is done, the other person owns the BTC.
Yes. The other person has to repay you.
Topic: Loans in BTC - page 2. (Read 6507 times)
Yes. The other person has to repay you.
How do you "lend" BTC? Once the transaction is done, the other person owns the BTC.
With fiat, bank loans create money out of thin air increasing the money supply thus promoting inflation. Nowadays the banks can free wheel as there is little to no requirement to hold reserves. BTC is different because lending BTC is real. None created from the loan.
Just like with gold in the 19th century, BTC banks would "create" BTC bank notes (receipts) with all ensuing consequences like bank runs and bank defaults.
The FDCPA is the Fair Debt Collection Practices Act. Generally speaking fiat based loans will have more options to guarantee payment. Even signature loans for example will require a borrower to have an active checking account that money can be automatically withdrawn.
Fiat based loans also generally will require more documentation regarding a borrower's ability to repay their loans. Yes this is not something that BTC based lenders cannot do but the economy is generally not setup to do this.
Fiat based loans also generally will require more documentation regarding a borrower's ability to repay their loans. Yes this is not something that BTC based lenders cannot do but the economy is generally not setup to do this.
Once licences come into play, I can see documentation for bitcoin users getting more cumbersome than fiat documentation.
I think the biggest challenge that lenders will have is lending to people who are potentially in another country. Having a loan agreement cross boarders is not an easy task and would likely be very expensive and difficult to enforce.
Imo modern economy can live without loans and loans in Bitcoins will help current banking system to stay alive. It's not we are want, am I right?
With fiat, bank loans create money out of thin air increasing the money supply thus promoting inflation. Nowadays the banks can free wheel as there is little to no requirement to hold reserves. BTC is different because lending BTC is real. None created from the loan.
The FDCPA is the Fair Debt Collection Practices Act. Generally speaking fiat based loans will have more options to guarantee payment. Even signature loans for example will require a borrower to have an active checking account that money can be automatically withdrawn.
Fiat based loans also generally will require more documentation regarding a borrower's ability to repay their loans. Yes this is not something that BTC based lenders cannot do but the economy is generally not setup to do this.
Fiat based loans also generally will require more documentation regarding a borrower's ability to repay their loans. Yes this is not something that BTC based lenders cannot do but the economy is generally not setup to do this.
Once licences come into play, I can see documentation for bitcoin users getting more cumbersome than fiat documentation.
Bitcoins in my opinion is really not the right currency to be able to allow loans. I personally feel that trying anything like this with bitcoins could lead to a lot more ways to end up being scammed.
Why? It's money. BTC
You can walk away from a loan in fiat. Easy.
Lenders of fiat currency aren't protected from making bad investments by some sort of magic. They critique and analyze the data submitted by applicants for loans and verify their ID. This system would work for Bitcoin. It would work for any sort of cryptocurrency. It's just a payment method.
But it is still possible to put this person in jail, right? So it seems not much different from loans in fiat as long as you can reach the borrower.
This was a metaphor. You can always make someone's life unbearable even without throwing them into a prison cell.
I could hardly fancy anyone making a loan to an anonymous entity, whether it be in bitcoin or in fiat. Regarding making a debtor's life a hell, I didn't actually mean anything illegal. Sorry if I wasn't clear about that from the start. My point was that failing to repay the loan could entail such consequences that would make taking a loan with the purpose of not returning it an unwise decision.
So it doesn't make much difference whether you loan in bitcoin or in fiat, correct? Also FDCPA (don't even know what it stands for) requirements are only valid for one country. Other countries may have other regulating bodies apparently with different requirements.
Fiat based loans also generally will require more documentation regarding a borrower's ability to repay their loans. Yes this is not something that BTC based lenders cannot do but the economy is generally not setup to do this.
If FIAT doesnt exist how is people suposed to do business without loans?
Bitcoins in my opinion is really not the right currency to be able to allow loans. I personally feel that trying anything like this with bitcoins could lead to a lot more ways to end up being scammed.
Why? It's money. BTC
You can walk away from a loan in fiat. Easy.
Lenders of fiat currency aren't protected from making bad investments by some sort of magic. They critique and analyze the data submitted by applicants for loans and verify their ID. This system would work for Bitcoin. It would work for any sort of cryptocurrency. It's just a payment method.
But it is still possible to put this person in jail, right? So it seems not much different from loans in fiat as long as you can reach the borrower.
This was a metaphor. You can always make someone's life unbearable even without throwing them into a prison cell.
I could hardly fancy anyone making a loan to an anonymous entity, whether it be in bitcoin or in fiat. Regarding making a debtor's life a hell, I didn't actually mean anything illegal. Sorry if I wasn't clear about that from the start. My point was that failing to repay the loan could entail such consequences that would make taking a loan with the purpose of not returning it an unwise decision.
So it doesn't make much difference whether you loan in bitcoin or in fiat, correct? Also FDCPA (don't even know what it stands for) requirements are only valid for one country. Other countries may have other regulating bodies apparently with different requirements.
bitcoin is not the right currency for loans.
I don't know if another alt currency would work or not, but any bitcoin loans would have to take place outside the blockchain and be done by contract.
I don't want BTC to replace fiat anyway, but rather compliment it.
I don't know if another alt currency would work or not, but any bitcoin loans would have to take place outside the blockchain and be done by contract.
I don't want BTC to replace fiat anyway, but rather compliment it.
I agree with your post. BTC should be complimented with Fiat, not arch enemies as some people make out on this forum. BTC has a lot of great upsides and so does fiat, so why not use both of them instead of making out as if only one can be used?
I personally think by combining both Fiat which offers offline use and Bitcoin which offers online user and it's benefits, then we have an even more advanced and powerful economical opportunity worldwide.
Correct. Fiat cannot be replaced completely.
At least, not until taxes have to be paid in fiat.
bitcoin is not the right currency for loans.
I don't know if another alt currency would work or not, but any bitcoin loans would have to take place outside the blockchain and be done by contract.
I don't want BTC to replace fiat anyway, but rather compliment it.
I don't know if another alt currency would work or not, but any bitcoin loans would have to take place outside the blockchain and be done by contract.
I don't want BTC to replace fiat anyway, but rather compliment it.
Yeah but what if a person wants to start a business and what not and has no spare BTC? How can an economy work without loans? Of course, that is if it doesnt replace FIAT which I think its impossible.
Bitcoins in my opinion is really not the right currency to be able to allow loans. I personally feel that trying anything like this with bitcoins could lead to a lot more ways to end up being scammed.
Why? It's money. BTC
You can walk away from a loan in fiat. Easy.
Lenders of fiat currency aren't protected from making bad investments by some sort of magic. They critique and analyze the data submitted by applicants for loans and verify their ID. This system would work for Bitcoin. It would work for any sort of cryptocurrency. It's just a payment method.
But it is still possible to put this person in jail, right? So it seems not much different from loans in fiat as long as you can reach the borrower.
This was a metaphor. You can always make someone's life unbearable even without throwing them into a prison cell.
I could hardly fancy anyone making a loan to an anonymous entity, whether it be in bitcoin or in fiat. Regarding making a debtor's life a hell, I didn't actually mean anything illegal. Sorry if I wasn't clear about that from the start. My point was that failing to repay the loan could entail such consequences that would make taking a loan with the purpose of not returning it an unwise decision.
Bitcoins in my opinion is really not the right currency to be able to allow loans. I personally feel that trying anything like this with bitcoins could lead to a lot more ways to end up being scammed.
Why? It's money. BTC
You can walk away from a loan in fiat. Easy.
Lenders of fiat currency aren't protected from making bad investments by some sort of magic. They critique and analyze the data submitted by applicants for loans and verify their ID. This system would work for Bitcoin. It would work for any sort of cryptocurrency. It's just a payment method.
But it is still possible to put this person in jail, right? So it seems not much different from loans in fiat as long as you can reach the borrower.
This was a metaphor. You can always make someone's life unbearable even without throwing them into a prison cell.
I could hardly fancy anyone making a loan to an anonymous entity, whether it be in bitcoin or in fiat. Regarding making a debtor's life a hell, I didn't actually mean anything illegal. Sorry if I wasn't clear about that from the start. My point was that failing to repay the loan could entail such consequences that would make taking a loan with the purpose of not returning it an unwise decision.
bitcoin is not the right currency for loans.
I don't know if another alt currency would work or not, but any bitcoin loans would have to take place outside the blockchain and be done by contract.
I don't want BTC to replace fiat anyway, but rather compliment it.
There are companies that gives out loan in BTC, try btcjam.com I don't know if another alt currency would work or not, but any bitcoin loans would have to take place outside the blockchain and be done by contract.
I don't want BTC to replace fiat anyway, but rather compliment it.
BTC loans will be successful for big orders if the final amount to be paid is in BTC[not dollars] since for big amounts slight variation in market value can cause big profit/loss.
I think it is possible that loans could work on a contract basis where identification is required to be confirmed. Only way to make it work but there is still the problem of fake ids. Loans have no backing in any real organization. A loan of 1 btc could change over time (ex. Its 600 when given, 500 when its due) in value.
The price of housing is artificially high because of the whole credit industry.
Before mortgages, you'd have people building their own houses on land they claimed as their own. A homestead. So I think in an ideal world we'd go back to that sort of thing, or something completely new.
https://www.youtube.com/watch?v=Y4WmDoYJhnk
I certainly don't want loans in bitcoin, unless they're non-interest loans - that's where the monetary oppression in the world comes from.
Before mortgages, you'd have people building their own houses on land they claimed as their own. A homestead. So I think in an ideal world we'd go back to that sort of thing, or something completely new.
https://www.youtube.com/watch?v=Y4WmDoYJhnk
I certainly don't want loans in bitcoin, unless they're non-interest loans - that's where the monetary oppression in the world comes from.
in some areas the price of housing isn't very much at all. in places like cleveland, buffalo, chicago, you can get like a 4bed 2bath house for $30k. but then in boston the same house is 2.3 million
I guess the problem is trust with BTC as well as controlability.
Since everything is so anonymous it's hard to force someone to do something.
This is also why scams happen more with BTC then with most / any other currency.
For example: with Paypal you can dispute a transaction, with bitcoin you can't.
This way I lost 0.17 BTC myself when trying to exchange it to Paypal
This is a very big reason why it is not safe to use paypal period. But it is especially not safe to use paypal with bitcoin. Not only is it possible to have a PP transaction reversed if you are dealing with the legit owner of the account, but paypal accounts are notorious for getting hacked and when they do, whoever money was sent to by these stolen paypal accounts would be on the hook for the money that was sent them. Since everything is so anonymous it's hard to force someone to do something.
This is also why scams happen more with BTC then with most / any other currency.
For example: with Paypal you can dispute a transaction, with bitcoin you can't.
This way I lost 0.17 BTC myself when trying to exchange it to Paypal
Bitcoins in my opinion is really not the right currency to be able to allow loans. I personally feel that trying anything like this with bitcoins could lead to a lot more ways to end up being scammed.
Why? It's money. BTC
You can walk away from a loan in fiat. Easy.
Lenders of fiat currency aren't protected from making bad investments by some sort of magic. They critique and analyze the data submitted by applicants for loans and verify their ID. This system would work for Bitcoin. It would work for any sort of cryptocurrency. It's just a payment method.
But it is still possible to put this person in jail, right? So it seems not much different from loans in fiat as long as you can reach the borrower.
This was a metaphor. You can always make someone's life unbearable even without throwing them into a prison cell.
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