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Title: Why would people lend BTC without interest? Post by: kopipe on August 17, 2013, 01:52:46 PM I saw that Stunna is offering 0% interest loans (https://bitcointalk.org/index.php?topic=276416.0).
Why would you even offer 0% interest loans? You have negative expected value considering you're permanently in the red if just one person defaults. Title: Re: Why would people lend BTC without interest? Post by: 🏰 TradeFortress 🏰 on August 17, 2013, 01:54:50 PM People may tip.
Title: Re: Why would people lend BTC without interest? Post by: Kluge on August 17, 2013, 01:57:08 PM Originally, there was the Islamic Bank of Bitcoin offering 0% loans https://bitcointalk.org/index.php?topic=21732.0
IIRC, just the loans (senbon was doing investing in actual projects with funds, too) were profitable from tips. I doubt it could still work given the current state of the forum and users in general, but I guess a new guy took up the reigns. (unfortunately, I misplaced a check senbon sent over at one point -- it's worth a fair bit now lol) Title: Re: Why would people lend BTC without interest? Post by: Kouye on August 17, 2013, 02:03:37 PM Thank you for splitting this discussion to this thread. :)
I'll begin with a very simple example, happening at work, after lunch, when it's time to pay. "- Oh damn, I forgot my wallet in the office! Can anyone lend me 10$, please? - sure, you'll have to repay 10.1$, though." Does that sound right to you ? If you want to go deeper, you need to read this (http://en.wikipedia.org/wiki/Fractional_reserve_banking) first, or any information source you trust, about this topic. I understand you might be cautious about wikipedia. Title: Re: Why would people lend BTC without interest? Post by: jdany on August 17, 2013, 02:05:48 PM http://en.wikipedia.org/wiki/Altruism
Helping others in spite of knowing your efforts will be sacrificial. Title: Re: Why would people lend BTC without interest? Post by: paraipan on August 17, 2013, 02:12:02 PM Guess this happens in deflationary economies. Although a bit early-adopter style to have any real gains and with such small amounts of time, one or two weeks.
Title: Re: Why would people lend BTC without interest? Post by: Kouye on August 17, 2013, 02:12:29 PM Here is a successful 0% successful interest 200BTC loan.
https://bitcointalk.org/index.php?topic=258099.0 With mandatory tips, but still. ;D Title: Re: Why would people lend BTC without interest? Post by: jasonslow on August 17, 2013, 02:15:10 PM Clearly this man is different. He wants to help the forum users. Unlike most lenders that only wants profit.
Title: Re: Why would people lend BTC without interest? Post by: kopipe on August 17, 2013, 02:15:37 PM Thank you for splitting this discussion to this thread. :) I'll begin with a very simple example, happening at work, after lunch, when it's time to pay. "- Oh damn, I forgot my wallet in the office! Can anyone lend me 10$, please? - sure, you'll have to repay 10.1$, though." Does that sound right to you ? If you want to go deeper, you need to read this (http://en.wikipedia.org/wiki/Fractional_reserve_banking) first, or any information source you trust, about this topic. I understand you might be cautious about wikipedia. I understand this, I've loaned people I know in real life small amounts of money with 0% interest. However, this is Bitcoin, and as Joey has proven, people will scam you repeatedly for just .1BTC :D I suppose it could work if he only lends to trusted members, though. :) Thanks for the explanation. Title: Re: Why would people lend BTC without interest? Post by: 🏰 TradeFortress 🏰 on August 17, 2013, 03:13:52 PM Two thumbs up for Stunna. It offsets the moronic interest rates people seem to be asking for. Have you seen some of them floating around. I mean really. ::) There is a dude asking for 5 percent for 1 day loans. What bloody APR is that. Probably don't want to know. It's unfair to compare really short time loans to longer loans. But for your reference, 54211841% APR.Title: Re: Why would people lend BTC without interest? Post by: jdany on August 17, 2013, 03:23:03 PM No one would part with their BTC to make a 1 day loan for regular APR interest.
I've only needed short termers on a few occasions. And I was more concerned about the "oh shit" moment than I was about the math behind taking the loan. Title: Re: Why would people lend BTC without interest? Post by: Scott J on August 17, 2013, 03:36:52 PM (unfortunately, I misplaced a check senbon sent over at one point -- it's worth a fair bit now lol) How much are these worth roughly?I have one or two, just hope they're in good condition! Title: Re: Why would people lend BTC without interest? Post by: Kluge on August 18, 2013, 12:07:40 AM (unfortunately, I misplaced a check senbon sent over at one point -- it's worth a fair bit now lol) How much are these worth roughly?I have one or two, just hope they're in good condition! Title: Re: Why would people lend BTC without interest? Post by: JusticeForYou on August 18, 2013, 01:17:53 AM OP-
Scenario 1: You have a $20 bill but want 20 $1 bills and then want to take the $1 bills and turn them back into another $20 bill. Scenario 2: You are altruistic and like being part of something. Scenario 3: Refer back to Scenario 1. Title: Re: Why would people lend BTC without interest? Post by: voxelot on August 18, 2013, 01:46:04 AM Stunna is a beast with an awesome idea! I hope he receives the support he deserves braving his BTC for us clowns ;p
Title: Re: Why would people lend BTC without interest? Post by: peonminer on August 22, 2013, 08:54:51 PM Interesting thread is interesting.
Title: Re: Why would people lend BTC without interest? Post by: Dabs on August 23, 2013, 05:00:56 AM I lent my brother a large amount, interest free, for 5 years. But he's related to me by blood, so that might be different.
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