bitcoin loans

[errornone]

People need loans (bank loans atm) to live. To buy a car, a house, school, etc. Our society only works with loans.

So, if bitcoin becomes HUGE, how will the bitcoin loans work?

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[jacee]

People need loans (bank loans atm) to live. To buy a car, a house, school, etc. Our society only works with loans.

So, if bitcoin becomes HUGE, how will unroll the bitcoin loans?

not all people need loans so don't take it as a whole that our society works with loans. If bitcoins became huge then maybe loaning will be not that hard to get or maybe the other way. Depends on the person loaning and the one who is asking for it.

[Meuh6879]

So, if bitcoin becomes HUGE, how will the bitcoin loans work?

loan is DEBT.
DEBT is the actual situation ...





no LOAN here.

[Outlander]

People need loans (bank loans atm) to live. To buy a car, a house, school, etc. Our society only works with loans.

So, if bitcoin becomes HUGE, how will the bitcoin loans work?

It could base on reputation, or equivallent collateral.

[mooseCavalry]

The idea that heavy debt load is required to function  is a severe societal problem that has exacerbated a couple of countries economic problems already. 

If bitcoin goes mainstream, perhaps existing credit agencies will cooperate with existing/new lending avenues like they do with banking instutions today.

[DaddyMonsi]

People need loans (bank loans atm) to live. To buy a car, a house, school, etc. Our society only works with loans.

So, if bitcoin becomes HUGE, how will the bitcoin loans work?

treat bitcoin as a normal currency that everyone use
if you ask for a loan, make sure you repay it
small loans may need no collateral and can be given to you by trust alone but big or huge loan may need collateral just in case you failed to pay on time there is something to compensate the loss of BTC of the company or the person who give you loan
for huge loans like cars and houses, if ever BTC arrived to that level where its accepted and used by the bank i dont think the BTC will be deposited to your BTC wallet but instead will be transferred to BTC wallet of the seller car or a house itself that is if BTC will be used. For schools, i've heard of a few universities in our country who accepts BTC as a form of payment but that is still something that I need to confirm.

[mezmerizer9]

treat bitcoin as a normal currency that everyone use
if you ask for a loan, make sure you repay it
small loans may need no collateral and can be given to you by trust alone but big or huge loan may need collateral just in case you failed to pay on time there is something to compensate the loss of BTC of the company or the person who give you loan
for huge loans like cars and houses, if ever BTC arrived to that level where its accepted and used by the bank i dont think the BTC will be deposited to your BTC wallet but instead will be transferred to BTC wallet of the seller car or a house itself that is if BTC will be used. For schools, i've heard of a few universities in our country who accepts BTC as a form of payment but that is still something that I need to confirm.

Good idea!

I want to add one! The borrowers could sign a smart contract, agree to allocate some money from his monthly salary (bitcoin) being sent to the lenders. It involves three parties, including borrowers, lenders, your employers. Once the contracts are signed, no one can change it, except the three parties together.

[Coinshot]

I believe one should not even consider in making a bitcoin related loan if the source of one's income isn't denominated in bitcoin aswell.

Mainly because there could be problems with loan repayment if the value of bitcoin increases during the duration of loan itself, on the other hand; if price would go under; it would
be good for loan taker, but that's a gamble, and as a loan taker you can't afford to gamble.

So use bitcoin loans only if you get income in bitcoins, and for every other case denominate the loan in fiat.

[bitbaby]

People need loans (bank loans atm) to live. To buy a car, a house, school, etc. Our society only works with loans.

So, if bitcoin becomes HUGE, how will the bitcoin loans work?

They can work the same way. Banks gives out small loans based on reputation and larger ones for collateral and if you check out the Lending section it is happening exactly like that. People give/take loans based on user's reputation and larger ones are only allowed if a collateral is provided.

I believe one should not even consider in making a bitcoin related loan if the source of one's income isn't denominated in bitcoin aswell.

Mainly because there could be problems with loan repayment if the value of bitcoin increases during the duration of loan itself, on the other hand; if price would go under; it would
be good for loan taker, but that's a gamble, and as a loan taker you can't afford to gamble.

So use bitcoin loans only if you get income in bitcoins, and for every other case denominate the loan in fiat.

True but Bitcoin is not so volatile atm but these are risks involved with Bitcoin loans and both the parties should be aware of these prior to taking/giving any loans.

[notlist3d]

People need loans (bank loans atm) to live. To buy a car, a house, school, etc. Our society only works with loans.

So, if bitcoin becomes HUGE, how will the bitcoin loans work?

There are already a lot of bitcoin loans.  AVOID them at all costs.  Sadly a lot of people default which means you do not get your  money back.

And you have to go after them legally, and they might not even be in your country.   Its just a hard time collecting if they default.

[Undermood]

People need loans (bank loans atm) to live. To buy a car, a house, school, etc. Our society only works with loans.

So, if bitcoin becomes HUGE, how will the bitcoin loans work?

There are already a lot of bitcoin loans.  AVOID them at all costs.  Sadly a lot of people default which means you do not get your  money back.

And you have to go after them legally, and they might not even be in your country.   Its just a hard time collecting if they default.

Lenders here tend to issue collateral loan. Once the loan is defaulted, at least the lenders could recover the loan through liquidate the collateral.

[Mickeyb]

People need loans (bank loans atm) to live. To buy a car, a house, school, etc. Our society only works with loans.

So, if bitcoin becomes HUGE, how will the bitcoin loans work?

They will work just as FIAT loans. There are many loans on this forum, just go to the lending section and see it for yourself. If you take a good collateral, you shouldn't have any problems if the loan defaults. As you can see, a common sense is the most important, if you are giving a FIAT loan or Crypto loan.

[I E]

Websites have been made for this purpose already.

[chennan]

They will work just as FIAT loans. There are many loans on this forum, just go to the lending section and see it for yourself. If you take a good collateral, you shouldn't have any problems if the loan defaults. As you can see, a common sense is the most important, if you are giving a FIAT loan or Crypto loan.

Lenders in lending board here are more willing to give out bitcoin loan, instead of fiat. They are here for bitcoin, nor for fiat.   

Websites have been made for this purpose already.

Yes, like btcjam.com

[maku]

System of that bitcoin loans is not that hard to create. There are already services and dedicated websites for this. We even have somewhat big section here on bitcointalk for that purpose.
But do we really need it? Do we really need another spiral of debt in bitcoin world? For now borrowing bitcoin could be riskier that fiat because of the volatility, why would anyone want that?

[pooya87]

People need loans (bank loans atm) to live. To buy a car, a house, school, etc. Our society only works with loans.

So, if bitcoin becomes HUGE, how will the bitcoin loans work?

your answer is simple, bitcoin loans would be the same way money (bank) loans are, with some sort of collateral and with big profits which you have to pay back.
right now if you want tot take a loan out from a bank you need to provide some sort of collateral or whatever you want to call it, for example when taking a loan to buy a house you sorta give your house to the bank as a guarantee that you pay them back and if not they sell your house.
so bitcoin loan should not be any different.

[Mickeyb]

They will work just as FIAT loans. There are many loans on this forum, just go to the lending section and see it for yourself. If you take a good collateral, you shouldn't have any problems if the loan defaults. As you can see, a common sense is the most important, if you are giving a FIAT loan or Crypto loan.

Lenders in lending board here are more willing to give out bitcoin loan, instead of fiat. They are here for bitcoin, nor for fiat.   

Websites have been made for this purpose already.

Yes, like btcjam.com

I know that lenders on bitcointalk are giving out loans in BTC only. I didn't say that they are here for FIAT but for Bitcoin, of course.

The point that I was making to the OP is that Bitcoin loans in the future should work essentially in the same way as the FIAT loans are working right now, I don't see why anything would change as long as good collateral exists.

[Amph]

you can build a structure that aim for a good loan service, on top of open bazar or on top of the blockchain, regulated by the same type of arbiters

if something like big loan will ever happen, bitcoin value will skyrocket as a result, otherwise the current price can not accomodate a great amount to borrow

[HeroCat]

BTC loans can be similar to any other loan. You take BTC loan and pay it back. Even in the forum you can take BTC loans and pay them back.   

[sana6801]

System of that bitcoin loans is not that hard to create. There are already services and dedicated websites for this. We even have somewhat big section here on bitcointalk for that purpose.
But do we really need it? Do we really need another spiral of debt in bitcoin world? For now borrowing bitcoin could be riskier that fiat because of the volatility, why would anyone want that?

Why not! There are many merchants or services who are accepting bitcoin payment. Users here borrows and spends bitcoin directly. Why should they care about the volatility of it? They are only dealing with bitcoin. But if they need to exchange the borrowed bitcoin to fiat, that is another matter!