Bitcoin Forum

I think everyone is pretty aware of how offline loan system works, especially with credit card scores and all that. So, how is the idea of Crypto backed fiat loan (https://loan.inlock.io/2018/09/05/double-the-fun-half-the-risk-introduction-to-crypto-backed-fiat-loans/) is? At least, it is what Inlock is pretty much about.

With no credit card score tension for loan and no complicated contracts, is it not something you will prefer ANY DAY of the WEEK? I don’t know about others, but I will certainly believe in doing so! So is this not ANOTHER concept that Crypto industry is cracking up for betterment?

Yes it's good there are many benefits which you are carry with this loan system I hope it's will applicable for for market.

I have not experienced any crypto based loans yet personally but in last year or so many projects were introduced like salt, ethlend and nexo etc and i think all of them are already in business with working platforms and also few more are under development, i hope these projects will cater the target market nicely.

i just wondering about how about repayment,
i mean, if someone on sunday get a loan 1 btc with rates 6000
then how he must payment ?
i mean , based on usd rates on that time or on day of return payment ?
because we know , on this time , price very fluctuactive.

No it is not. Crypto is very volatile market. Think about taking loan on march 2017 and paying in december.

This kind of risk is too high to take.

Not at all, if you are giving loans in cryptos then there is a very high probability of you making more losses than profit due to the way that the market is so volatile. Lending through crypto is not a viable market for now. There is no way for you to even make sure that you are going to get back the money that you have loaned out to people.

Try bitshares. You can loan using your bitshare coins as collateral.  Whats good is the system will not charge interest. You heard it right - 0% interest!

In my opinion, no one would dare to borrow crypto, and no one would dare to borrow crypto, because the risks between the two sides is difficult to grow so I think this business will not come true. They are just a hypothesis

Crypto loans have a higher level of risk than fiat, because procedures that support are very vulnerable to the level of security that each loan project has, maybe this is a good breakthrough, but very risky

I don't think its better to use crypto for giving or taking loan. The most and main important point for this is "crypto market are not a stable market. Its always in dumping and pumping. "
Suppose you gave anyone 300$ of btc and btc pump suddenly. So if he give you back your 300$ you will not get as same as btc you gave to him.. Such any one gave of 300$ of btc and btc dump after this, so when will you give him the 300$ you have to pay him more btc. So i don't think we should trust any unpredictable market or things as our loan system...

If this could really work that we could have loans using crypto then I might consider that we really don't need banks anymore for it and would rely on cryptocurrencies.

not sure. crypto prices are going up and down fast. so that will be a disadvantage for one party. anyway if they are using BTC then it will be little easy. if you use a token for the loan they it may go up or down heavily.

Actually, the crypto loan is a good thing, but I don't think it will be easy to run that. Yeah, we know that the price is unstable here, then how to handle this simple thing? When someone has some loan today, when he should pay for it and the price is up or down, it's a little bit complicated.

Repayment will depends on the terms and conditions of the loan, some platform peg their loan against fiat instead of fluctuactive asset like Bitcoin. Don't forget also that you have to have digital asset collateral before you can apply for loan.