Thanks:)
Of course one ought to try this out with money one can afford to lose and thus encourage the platforms that are doing this. The answer to the question about getting paid back is most of the loans appear to be short term (though I have no knowledge, no liability, am not giving advice etc etc etc).... But I am talking about examining their model and that of others with an open mind.
Because the ability to earn interest on a non-inflationary currency is something people will pay for. It is the classic "good money" (bitcoin) takes out bad money (fiat) scenario which leads to a rise in price and use of the "good" currency.It is our job as a community to properly vet the companies that are trying to provide interest, encourage them, give them feedback if they need to modify, spread the news if there is one doing it in an unsafe way, and so on.
Right now with rates in the 5% to 8% range, they don't come off as scams. I would use caution, but these companies do look more legit than many of the first batch who were offering unreal interest rates trying to scam people. Also some of them are also exchanges which would perhaps imply they have reserves...
Thoughts? How do we encourage the growth of the bitcoin interest rate economy?
wouldn't many people go bankrupt/default on their loans if they take a loan in bitcoins?
how are they going to pay when they borrowed a bitcoin and suddenly the bitcoin is worth 10 times more?
Instead of explaining this.
Create a BitFinex account.
Load up some bitcoins.
Loan out some bitcoins.
Get paid.
I made about 1 BTC earlier this year over the course of about 2-3 weeks loaning bitcoins on BitFinex (while the price was falling).
