But here is one thing I don't get. If I buy when it's at $100 USD and I have about $3500 USD worth at 100 bitcoin per dollar. Say I give someone a loan for a car for that amount and then the price of bitcoin goes down. Say I've used one of the loan sites on here to manage the loan. Does it change the price on the bitcoin due to match the USD or will one car payment be $200 and the next one $300?
Did that make sense?
Thanks
hey again geekmomma
normally when a loan/purchase is pulled, the loan amount is either tied to BTC or USD. (or weird foreign currencies that don't make sense)
this means that if the purchase was tied to dollars and paid in BTC (assuming that they accepted spot price at the time of purchase/loan), if the price of BTC goes up, the buyer of the item loses out on profits of holding onto that BTC. this is also what happened when BFL took their preorders. they have many millions worth of btc from maybe 1-2 USD worth of sales, because btc were cheaper when people bought them with btc.
on the other hand, say on the lending forum, if you take out a BTC loan tied to BTC, and BTC price goes up... you just got yourself some insane interest piling up.
i hope i was able to help.
please let me know how poorly i explained that and i will be happy to fill in the gaps.
