The lending problem - page 4. | Bitcointalksearch.org

Findingnemo

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Bitcoin = Financial freedom

Quote from: paxmao on August 29, 2021, 05:57:07 PM

How is this problem addressed currently and how could it be solved at large scale without a "bank" of shorts?

Lending, this is never going to be completely decentralized and bitcoin is not actually created to kill the central banks nor to bring the decentralized lending system it is just to eliminate the third party to send your own money to someone so concept of lending is not actually under the bitcoin.

But due to the evolution lot of projects are coming up with different ideas and one of them is DeFi which created hyped but didn't made any changes in the real world usage.

VictorProsh

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я открыт

Quote from: paxmao on August 29, 2021, 05:57:07 PM

A simple question to the forum - I hope that people can provide sensible answers, since it would be way too easy to preach rather than to reason.

It has been mentioned many times in the forum that banks can be killed by bitcoin and that crypto is a threat for central banks, etc... One of the reasons that make me doubt about that possibility is the worldwide need of having a strong lending and borrowing system. I think that currently DeFi does not offer a realistic solution and that lending eventually has to rely on an intermediary. That, in some way or under a different name, is a bank.

How is this problem addressed currently and how could it be solved at large scale without a "bank" of shorts?

You are right to doubt that the crypto currency will not kill banks. Banks will work with cryptocurrency and lend against its collateral when it becomes profitable and safe. In the next branch, I'm just leading this topic.

https://bitcointalksearch.org/topic/why-dont-banks-work-with-cryptocurrency-5344645

jackg

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https://bit.ly/387FXHi lightning theory

A decentralised system might be a more indiscriminate one.

If we assume the past of what happened, people owned land/property and it was let to them or sold via a mortgage. A lender might know you, ask someone who does to provide a reference or rely on you having a good character (eg having a job and being fairly smartly/cleanly dressed) before lending to you. This is still what happens in a lot of jobs these days where someone on a team assesses applicants to see how well they get on with them.

Currently a lot of systems just use computers to work out whether they can lend to someone and it causes a lot of imbalance - I think this happened to an extent that countries have started passing laws against algorithms making the final decisions on you though. I don't think going back to how things were is necessarily a good idea but it may emerge as a competitor of the current system. I highly doubt you can expect a fully digital contract to be allowed for the value of something like a house, but a witnessed physical contract (referenced and stored online) might still be effective.

20kevin20

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I'm not the best guy when it comes to knowledge about lending and stuff, but I am quite sure that the "BTC is a threat to central banks" argument has been mostly based so far on the fact that Bitcoin lets you work with finance without discriminating you and that it provides a store of value no fiat in the world ever has.

Bitcoin will probably never fully replace banks, but it did, does and will affect them severely as time goes on unless banks move faster with their CBDCs. And considering we've first had just a tech geek's currency that now turned into one of the biggest store of value in history, a proper blockchain-based lending system might not be that far-fetched after all.

paxmao

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Do not die for Putin

A simple question to the forum - I hope that people can provide sensible answers, since it would be way too easy to preach rather than to reason.

It has been mentioned many times in the forum that banks can be killed by bitcoin and that crypto is a threat for central banks, etc... One of the reasons that make me doubt about that possibility is the worldwide need of having a strong lending and borrowing system. I think that currently DeFi does not offer a realistic solution and that lending eventually has to rely on an intermediary. That, in some way or under a different name, is a bank.

How is this problem addressed currently and how could it be solved at large scale without a "bank" of shorts?

Topic: The lending problem - page 4. (Read 575 times)