Why do people borrow bitcoins?

[byronbb]

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?

[1714132034]

1714132034

[1714132034]

1714132034

[1714132034]

1714132034

[1714132034]

1714132034

[1714132034]

1714132034

[1714132034]

1714132034

[dust]

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.

[PatrickHarnett]

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.

[mp420]

Also, many do not intend to pay back.

If you don't pay back your debt, it makes sense to promise ridiculously high rates.

[koin]

If you don't pay back your debt, it makes sense to promise ridiculously high rates.

bingo!

[fabrizziop]

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.