Topic: Zero interest Bitcoin mortgages - page 3. (Read 3941 times)

that would be creazy man

This seems like a good idea.

have you heard of ripple?
http://en.wikipedia.org/wiki/Ripple_monetary_system

I agree that this is years down the line.  Early adoption will involve easily moved products in exchange for Bitcoins; the medium for this exchange being the Internet.  Buying/selling a house would require both parties to live in relative proximity to agree upon the transaction, involving inspections, due diligence, agent and closing attorney fees.  It's a great vision... but honestly I'd rather keep my money in Bitcoins instead of real estate for another few months at least! 

I think it would make more sense to take interest rate.

Nothing prevents you from reducing your interest rate by some part by mining but why would I as a lender give money to people for free? (Which is what you do when you do not charge appropriate interest rate)

Cool, thanks for your support guys!  Obviously it needs a bit of fleshing out..

This sounds like a good plan!

Love this idea, especially that of a reputation system to weed out unreliable loanees. A website that would facilitate these loans could be quite useful in my opinion. Just my two cents.

Maybe instead of mortgages we can start out on something smaller, like stuff under $1000.  Maybe this concept could be used to fund new miners ore (LOL) something.

This sounds interesting, but years down the timeline.  Very tough to peg the price of a house to a currency with so much volatility.  We often see swings of over 10% in this market daily.  That might be ok if you deal with small things, but that is HUGE when it comes to a house.  In a few years, if BC prices have stabilized a bit, and it ends up getting "pegged" to products (like houses and cars) then you see even less volatility.  Chicken or the egg?

I'm interested in this.

Who is hosting the mining hardware and how do you get paid?  I am assuming the 'btcbroker' gets a cut too.  Sounds interesting but needs to be fleshed out a bit more.

Hi, I have been thinking about peer to peer mortgages for some time, and trying to come up with ways that people could borrow money from each other instead of banks.  Then last week I heard about Bitcoin and I found the answer.  Basically it breaks down like this:

* everyone would have a credit rating, lending money gets you good credit, as does re-paying money.  Defaulting on payments gets you bad credit.  So eveyone is able to decide for themselves if they want to lend depending on the rating of the borrower.

* The Borrower's loan is split up into many segments eg. for a $500,000 loan there would be 5000 people loaning the borrower $100 each.

* This is the clever part...instead of recieving interest, the lender recieives a mining right to process the loan transaction.  The right expires within a given timeframe, so if he doesn't (or can't) process it before it expires then he can sell the right to someone who can.   If the right expires then it just goes into the general pool to get processed.
So every month that the loan is outstanding, the lender gets a new right to process that month's portion of the transaction repayment.

This is potentially far more valuable to the lender than a few percent of interest would be, and effectively the borrower gets an interest free loan.

Does this make sense?  I hope I have understood Bitcoin correctly.  If anyone finds this useful feel free to post it to the main board as I don't have access there yet.

Cheers.