Is Bitcoin the future of loans or just pocket change charity?

[Wiwo]

Once again, one more “newbie” question, until you realize an account does not define the person behind it.
So, is BTC really the ideal tool to replace banks in typical loans and mortgages, or is it only designed for big players and small-scale charity "loans" like we usually see in this forum?

Forum loans are informal loan's and for that we can't place them in Bitcoin ecosystem for whatever reason, banks loans will definitely remain the legal means of running a loan service since it decentralized and licensed.

We have a few Bitcoin and cryptocurrency loans platforms that were very popular in the past, but lately I haven't heard from any new one or the old ones still in operation.

[cryptoaddictchie]

Once again, one more “newbie” question, until you realize an account does not define the person behind it.
So, is BTC really the ideal tool to replace banks in typical loans and mortgages, or is it only designed for big players and small-scale charity "loans" like we usually see in this forum?

Bitcoin isnt built to replace banks or other finances firm for mortgages or big loans. Its money, not the bank. Lending around BTC usually needs collateral or trust, so what we see here are mostly small peer to peer loans. Plus Im sure some bitcoin OGs prefer this forum to be most and major lending platform for everyone.

[beveryu778]

Once again, one more “newbie” question, until you realize an account does not define the person behind it.
So, is BTC really the ideal tool to replace banks in typical loans and mortgages, or is it only designed for big players and small-scale charity "loans" like we usually see in this forum?

Bitcoin is not for loans. The reason you are being given Bitcoin loans on this forum is because your account has a value and reputation. Due to which you will ruin the reputation of your account for the amount of money you are being given. With this trust, those who provide lending services will give you a certain amount of loan. I only gave an example of a reportable account. You are a newbie and you will not get a loan of $ 1 because you are not eligible. However, if in the future banks accept Bitcoin directly, in exchange for keeping some collateral, you can get the service of taking Bitcoin loans, but this is not yet effective. Because banks do not accept Bitcoin deposits or collateral directly.

[sunsilk]

It's not bitcoin that will change how people will take loans. And it's not a pocket change charity. Bitcoin is for everyone that would like to have it as their own money.

And so, if it's about the loans that you want to know about. There's the DeFis or decentralized finance that has been doing its job to give loans to its users.

But that's not easy as it is because there's a collateral just like the banks. Bitcoin won't replace those loans and mortgages that we have and sometime ago, many of us thought that it will replace fiat but it's unlikely yet it's a good alternative.

[Jawhead999]

Well I don't think it's impossible, what about stock which is also a volatile asset, but financial companies do accept stock as collateral.

Even Bitcoin has a high volatility, the financial companies can call the borrowers to deposit more coins/money whenever Bitcoin price fall below certain threshold. Even though there's a regulation with stock e.g. trade in certain time, maximum gain/loss % per day etc but it's quite volatile especially second liner stock.

[di4biz]

Thanks everyone for the replies, and apologies in advance for the comparisons I made, but hey, a little clickbait is always good to get as many different ideas as possible 

Bitcoin isnt built to replace banks or other finances firm for mortgages or big loans. Its money, not the bank. Lending around BTC usually needs collateral or trust, so what we see here are mostly small peer to peer loans. Plus Im sure some bitcoin OGs prefer this forum to be most and major lending platform for everyone.

I fully understand the value of BTC and the role it can play as collateral for acquiring loans. What I don’t get is why we still don’t have proper DeFi or P2P solutions where people can actually request and negotiate loans directly with each other.

Forum loans are informal loan's and for that we can't place them in Bitcoin ecosystem for whatever reason, banks loans will definitely remain the legal means of running a loan service since it decentralized and licensed.

We have a few Bitcoin and cryptocurrency loans platforms that were very popular in the past, but lately I haven't heard from any new one or the old ones still in operation.

So back to the question: would big corps have any real interest in allowing a free market of peer-to-peer loans using all sorts of collateral including BTC, Stables, RWAs, etc?

[Jawhead999]

I fully understand the value of BTC and the role it can play as collateral for acquiring loans. What I don’t get is why we still don’t have proper DeFi or P2P solutions where people can actually request and negotiate loans directly with each other.

So back to the question: would big corps have any real interest in allowing a free market of peer-to-peer loans using all sorts of collateral including BTC, Stables, RWAs, etc?

Mostly, people start a business when they see a high demand on that. Personally I don't think the demand of Bitcoin as a collateral for taking loan is high, because Bitcoin itself liquid and can't be trade anywhere. Usually people use something as collateral because it's not liquid.

Moreover you want a free market which is much more complex.

The demand is low and it's complex too make, I don't think any big corporation will create it.

[Abiky]

Once again, one more “newbie” question, until you realize an account does not define the person behind it.
So, is BTC really the ideal tool to replace banks in typical loans and mortgages, or is it only designed for big players and small-scale charity "loans" like we usually see in this forum?

Bitcoin by itself cannot issue loans or mortgages. If that's what you mean. But it's possible you can get loans denominated in BTC through the use of smart contracts. The thing about Bitcoin is that enables anyone to be their own bank. So, you can do practically anything you want with it. As long as it's nothing illegal. You don't have to be a "big player" or wealthy person to start enjoying it.

All in all, I don't think Bitcoin will replace banks anytime soon. That's because they are "too big to fail". Even with Bitcoin and many other cryptocurrencies in play, banks are still relevant. So long as governments exist, banks won't be going anywhere.

[btc-marty]

both

man bitcoin is the best

P.D:
I hope we can get a better accesbility and ease of use for the new generations. Improve layer 2.
That said i need to improve my undestanding still. But this makes my point again. People dont make the time.

[Sonia_123]

So, is BTC really the ideal tool to replace banks in typical loans and mortgages, or is it only designed for big players and small-scale charity "loans" like we usually see in this forum?

Bitcoin is an alternative and not a replacement, so are other means of getting loan. They will all be alternatives to fiat and not a replacement because there is nothing that can replace fiat.

I do not think bitcoin is good for loan because someone that loan money is in dept and some people can find it hard to pay such dept back but if the price of bitcoin increases, it will become more difficult to pay. I prefer using fiat for loan but bitcoin can be good when the price is significantly high already.

Bitcoin was not created to replace bank loans or created for small scale charity loans, that is a wrong perception about bitcoin creation, bitcoin is not centralized and regulated by anyone but by itself which makes it outstanding .

Bitcoin is a digital currency which acts as a medium of exchange between two different entity to enable users buy, sell, trade without any centralized bodies,also for people to make monetary transaction over the internet It was created as a decentralized nature and strictly gives rules that contributes to it's value, and provide an alternative payment system which will operate freely on its own without any central control, not for anything like loans or charity except you decide to use your personal acquired bitcoin for that purpose, that is your wish and not Satoshi's wish .

[davis196]

Once again, one more “newbie” question, until you realize an account does not define the person behind it.
So, is BTC really the ideal tool to replace banks in typical loans and mortgages, or is it only designed for big players and small-scale charity "loans" like we usually see in this forum?

Can BTC be used as a currency(or a collateral) for loans? Yes, it can. Do really have to lend our BTC to borrowers? This is completely up to you, but I wouldn't do such thing.
Can Bitcoin replace banks, when it comes to giving loans and mortgages to companies and households? NO, it can't. Bitcoin isn't a company, nor a bank. Bitcoin doesn't have bank clerks, who would evaluate customers and give them loans and mortgages.
What exactly do you mean by "charity loan"? The term "charity loan" doesn't make sense to me. The cryptocurrency loans on this forum are backed with cryptocurrency collaterals and have an interest rate. There's no charity element in them. I don't know where did you come up with this "charity loan" thing.

[Zanab247]

Once again, one more “newbie” question, until you realize an account does not define the person behind it.
So, is BTC really the ideal tool to replace banks in typical loans and mortgages, or is it only designed for big players and small-scale charity "loans" like we usually see in this forum?

BTC is not the tool to replace fiat money and it will never replace it, because the government will not allow decentralized currency that is not under their control to replace centralized currency that is fully under their control to perish.

BTC is made or created to eliminate delay from distance transaction that is affecting some fiat transaction and to reduce unemployment that is a danger to the government economic, If you don't have money to invest in BTC, you can grow your account to member or full member above to join signature campaign that will be paying you in BTC to delete mind set of loan from your mind, because is not a good idea for newbies to see loan as opportunity to make it in life.

[Dave1]

Once again, one more “newbie” question, until you realize an account does not define the person behind it.
So, is BTC really the ideal tool to replace banks in typical loans and mortgages, or is it only designed for big players and small-scale charity "loans" like we usually see in this forum?

Again, it was design to replace the old fiat system. Although it has become one of the best asset or investment in the last 7 years, after the 2017 bull run. Also, from what my understanding is, the retail investors are still the biggest holder here and not those big players.

Yes, I do know that there are institutions and companies and even countries that are in the market. But I think it is us that will give the market going. Every sats count, so even if you think that this community is a small scale charity, if we accumulate in years then it will be big.

[free-bit.co.in]

Again, it was design to replace the old fiat system. Although it has become one of the best asset or investment in the last 7 years, after the 2017 bull run. Also, from what my understanding is, the retail investors are still the biggest holder here and not those big players.

No, it is designed as an alternative for people who are tired of the old fiat system, it is not designed to replace the old fiat system. Also, bitcoin has been used as an investment asset since the early days and if I remember correctly it has been traded and considered an investment asset since 2010.
Bitcoin was listed on Mt.Gox in 2010.

Yes, I do know that there are institutions and companies and even countries that are in the market. But I think it is us that will give the market going. Every sats count, so even if you think that this community is a small scale charity, if we accumulate in years then it will be big.

Although bitcoin has existed for more than 16 years without government backing, but if it is not be legalized by governments and does not receive institutional investment. I don't think bitcoin can become popular globally.

[justdimin]

Once again, one more “newbie” question, until you realize an account does not define the person behind it.
So, is BTC really the ideal tool to replace banks in typical loans and mortgages, or is it only designed for big players and small-scale charity "loans" like we usually see in this forum?

Loan world isn't perfectly shaped for bitcoin at the moment. Because for the time being, if you do not pay the loan back, not much can be done, it's not really that easy. Like I just took one big huge loan from my bank, to pay all my other loans and debts, that allowed me to drop my debt from 400 dollars a month, to 170 a month, but instead of all of them be done in 12 months, it will be done in 3 years, that's not a good deal I know, but this way, I can finally live, or at least try, you can't do that with bitcoin.

However, if one day we get more legit, like legit enough that banks give it out, that means legality matters. Because when I take a loan from my bank, I give every single detail about me, my job, my home, my income, my id, my drivers license, hell when I was a kid, they even asked for my diploma. So if I do not pay them back, they can legally come to my home, and take whatever they need. If crypto becomes like that, and they give loans like that, then yeah it can be big, because in that case, they just take that money one way or another.