Topic: usury = not cool - page 3. (Read 5239 times)

Maybe you need to watch it in a different language/country/time of day.  It's hilarious in Japanese, and helps pass jet-lag hours at 2 a.m. 

As much as i dislike spongbobsquarepants.

Patrick is always Owning people with his posts. AKA, You have been served by a starfish sir.

A couple of things.

Stealing is "not cool" either, and if you knew anything about risk/return you might find that several months ago I wasn't making money off these high-interest rate loans.

Second, I would like to defend the good quality people that borrow funds from me at 10%-15% per month.  Most are reliable and good people that I have a good business relationship with.  I do not like you disparaging them and their motives for borrowing.

Third, the service I offer is competitive - there are several others around and rates are negotiable, as are payment terms. 

I have previously donated to IBB and like what Sen is doing.  At the level I typically loan at (not micro) there are high stakes and real money involved.  I give awa enough money elsewhere to not be worried about the high rates I charge, and if all my loans were repaid tomorrow and I didn't do any more, that would be fine.

And as to the OP, there is a place for 0% interest loans. But they really aren't loans though, are they? You are helping people out. No business model could do this because of inflation. You might as well just give people the amount of money at the current inflation rate over APR.

Which, btw, I would also do. Instead of me borrowing 100 BTC for the year at 3% inflation: Just send me 0.25 BTC per month to the following address: 1Pskdr7kciDbWwwTfiDvqWZNT6HGb6SPf2 

It will save us both a lot of work.

I don't recall there being any prescribed Bitcoin philosophy. Bitcoin is a cryptographic/network protocol that has attracted many people of many different minds.

No one and nothing is stopping you from lending out your own BTC at a 0% interest rate.

I will offer to take all of your BTC on deposit (no limit) at 0% interest rate.

You cannot tell us what to do.  You are not the boss of us.  Or, are you planning on implementing some sort of system to force us to do what you want to do?


Please tell me which part of the Bitcoin philosophy relates to the making or charging of interest.  I missed that chapter I guess.

Sent 100.5 BTC to 18CdYqwkLfmDhjvfueZmDpDcjBRLh8BEXr

http://blockchain.info/address/18CdYqwkLfmDhjvfueZmDpDcjBRLh8BEXr


So the system works. The interest charged is based off of many factors. The better the borrower you are the better the interest rate charged can be.



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BTW: I am not copumpkin, ineedausername, and obviously not shakaru.
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If someone really insists on borrowing money at 10000+% interest,
well, people do all kinds of things. But what kind of customers do you
attract with such terms? Scammers who have no intention of paying you
back and therefore could not care less about the interest rate (no
shortage of those), and on the other hand the truly desperate. Even if
you do not care about exploiting them, if 1-10 BTC is a big deal for
someone, how are they supposed to come up with the ludicrous amounts
of interest? (How do you honestly generate money at that rate? Play a
lot of roulette? Lend it to someone else at 10001%?) Either way, it
seems like a shaky business proposition, and it is not how
microfinance is supposed to work.

As for 10000+ btc loans, that is pushing the envelope if we are
talking about microcredits, but the principles of interest-free
lending should still apply, and nobody is claiming they are "have no
steady sorce of income, hand over cash to all comers, no questions
asked, and absorb all losses if/when they occur." It seems we are not
quite there yet, but none will be happier than I when experimental btc
finance like IBB gets to the point where one can fund your 15000 btc
project. Remember, a big part of the bitcoin philosophy was to solve
many of the problems people have with traditional institutions such as
banks, not make things worse.

Confirm, I have received 100 BTC.

Done: 18CdYqwkLfmDhjvfueZmDpDcjBRLh8BEXr

Someone please loan me: 100 BTC for <24hrs, I will repay at 0.5% for a total of 100.5 BTC.

Someone get their $2.50


edit: oh, send to: 1G12XfoPSLYiCdCH49qtN6NHMmHPQwPUta

same as before.

Repayed 101 BTC

http://blockchain.info/address/147nRtCJTTA1215jYakz7a8tKJvcamdHZ3

received 101 BTC

I confirm, I have received 100 BTC. Will repay, shortly.


After I repay, I will do another loan request but this time I will only pay 0.5% of 100 BTC.


This should show that it is a two way street on these loans. The borrower has power also.

http://blockchain.info/tx-index/3925565/0b5b5e607bc88660aadfea59fd57368a229e6b694272aa2ccaaa705886876344

Repay to 147nRtCJTTA1215jYakz7a8tKJvcamdHZ3, thanks

Another factor to consider it Time Value. 30% MPR might not be all that much money for the work being done on the lenders part. However, 300% APR might be. It depends on the amount that is going to be made for the money.

I.E. A 10 BTC Loan for a week at 15% is about $5 for about an hours worth of work. That seems fair.

And it's not just the interest, it is interest based on trust.


Lets test it: Someone loan me 100 BTC send to: 1G12XfoPSLYiCdCH49qtN6NHMmHPQwPUta

I promise to pay back 101 BTC in less than 12 hours. This is all I am willing to do, no other information. If you trust me, get your 1 BTC profit. If you don't, then don't bother me with your questions and pm's.

Could you please facilitate an interest free 30 day loan of 50 BTC for me ?
thank you.
bitlane.

I agree with this because the risk is so much higher when lending on here.The uncertainty over the exchange rates makes life more difficult than it ought to be really plus there are a fair number of scammers still on these forums (despite the old scammers being exposed and such).This is what makes risk higher for lenders and so they end up charging higher than ideal interest rates.I once saw a quick loans place in the UK offering loans while charging 9800% interest (for people with bad credit histories and have either been bankrupt or default on their other loans.Places who offer lower interest rates simply won't accept them as customers)

I once agreed to lend 2 BTC to a borrower with little if any reputation (hint look at the gorgo1 loan threads for an example of what I'm talking about) as I thought that it's such a small amount that I'd be ok not charging interest but any larger than that and I'd have to charge interest. In the end,the guy did pay back (several days early in fact) so its a positive start for him but still people need to be more vigilant to avoid being scammed.

As to the point of interest rates (dubbed 'usuary') they are used to help keep the business afloat (and profit if they already broke even),it's not an ideal way in all circumstances to rely on interest rates but we live in a society where interest rates are just common practice and we all have to do what we can to keep ourselves afloat and have a buffer so that people who default/scam can't hurt the lending businesses too much.Interest rates I think should be kept at reasonable levels if at all possible.

Just my 2 cents

+1

I dont' think IBB will be able to fund my 15,000 BTC loan request.  Do you think you are able to do it?  You say you are willing to work with them to make it happen.  Also I would be interested in your 0% loan.