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Title: Why do people borrow bitcoins? Post by: byronbb on August 16, 2012, 11:50:17 PM Why in gods name do people borrow coins at rates in a stratosphere beyond that offered by even borderline criminal fiat lenders? Ie why not borrow at 19% A YEAR off credit card, deposit at an exchange, buy bitcoins, lose it martingaling satoshidice?
Title: Re: Why do people borrow bitcoins? Post by: dust on August 17, 2012, 02:37:52 AM Why in gods name do people borrow coins at rates in a stratosphere beyond that offered by even borderline criminal fiat lenders? Ie why not borrow at 19% A YEAR off credit card, deposit at an exchange, buy bitcoins, lose it martingaling satoshidice? You are more than welcome to transfer your money to an exchange, pay whatever fees are required, and wait, then wait for a good time to buy then buy and pay the fees, then, wala! you have your BTC.The interest rates charged around here are generally much higher than the fees associated with buying BTC. If someone without any BTC borrows BTC they will most likely have to buy some on an exchange to pay back the lender. Title: Re: Why do people borrow bitcoins? Post by: PatrickHarnett on August 17, 2012, 03:40:19 AM Maybe they think the price will go down?
Maybe they don''t want to incur a $5 cash advance fee for a $1 payment? Maybe they can't get credit anywhere else? I have asked and advised borrowers in the past to choose alternative methods as pretty much anything else would be cheaper. Title: Re: Why do people borrow bitcoins? Post by: mp420 on August 17, 2012, 05:43:10 AM Also, many do not intend to pay back.
If you don't pay back your debt, it makes sense to promise ridiculously high rates. Title: Re: Why do people borrow bitcoins? Post by: koin on August 17, 2012, 09:53:03 AM If you don't pay back your debt, it makes sense to promise ridiculously high rates. bingo! Title: Re: Why do people borrow bitcoins? Post by: fabrizziop on August 17, 2012, 01:23:16 PM I borrowed bitcoins once because I'm 15 yr old, and you need to be over 18 years old in my country to get a CC and ask for the govt-subsidized dollars. I have capital in my country's currency, but it's a hassle to get it to dollars in small amounts (wires are expensive).
In short, BTC loans are useful. |