Can bitcoins stop bad debts

[Das]

With the debt crises in the eurozone, bitcoiners have been advocating the use of bitcoin in place of fiat. I don't think that will solve the problem on ground, people will always borrow money whether cash or bitcoins. What do you think?

[topiOleg]

Its much harder to borrow real Bitcoins you can use on blockchain, as you cannot use fraction reserve principes banks using with debt based fiat currencies (loan much more than they actually have). Bitcoin is different from fiat because you can use only what you really have, or you borrowed the Bitcoin from someone who really had it.

So if most switch to Bitcoin in future because Bitcoin really represent what sound money is all about, debt based systems become unsuistable anymore.

[cpfreeplz]

With the debt crises in the eurozone, bitcoiners have been advocating the use of bitcoin in place of fiat. I don't think that will solve the problem on ground, people will always borrow money whether cash or bitcoins. What do you think?

It's hard to borrow bitcoins because if you borrow say, a mortgage of 200,000 and bitcoins triple, sure you may have paid 10,000 bit you now owe 590,000 and the house is still not worth anything close to that.

For short-term loans it's fine (depending on the time period) because it's usually fairly predictable in the sense that a normal swing is about 10%. It's when places get hacked or there's a lot of price speculation assuming it's going to go in because of X, Y, and Z, you have issues with repayment.

Now if you loan bitcoins, but based on a USD / Euro amount, you yourself ar at risk because if the prices go up you might as well have just held onto your bitcoins!

[macedoniantable]

Borrowing bitcoins to pay off debts is not advised in the slightest.
That is like taking out a loan from Peter to pay off Paul. It just doesn't and will not work for anyone who is trying to do that in the long run. You will just end up with much more debit in the end.

[serjent05]

Borrowing bitcoins to pay off debts is not advised in the slightest.
That is like taking out a loan from Peter to pay off Paul. It just doesn't and will not work for anyone who is trying to do that in the long run. You will just end up with much more debit in the end.

Yeah you can't pay debt with debt it's just making the scenario worst.  Think of before you are paying 10% per month when you do this kind of strategy, you will pay twice the percentage because the person who lend you money wants interest too.  Better to work for it and be smart when it comes to debt.

[franky1]

With the debt crises in the eurozone, bitcoiners have been advocating the use of bitcoin in place of fiat. I don't think that will solve the problem on ground, people will always borrow money whether cash or bitcoins. What do you think?

It's hard to borrow bitcoins because if you borrow say, a mortgage of 200,000 and bitcoins triple, sure you may have paid 10,000 bit you now owe 590,000 and the house is still not worth anything close to that.

For short-term loans it's fine (depending on the time period) because it's usually fairly predictable in the sense that a normal swing is about 10%. It's when places get hacked or there's a lot of price speculation assuming it's going to go in because of X, Y, and Z, you have issues with repayment.

Now if you loan bitcoins, but based on a USD / Euro amount, you yourself ar at risk because if the prices go up you might as well have just held onto your bitcoins!

depends on the terms.. if loan based on fiat value.. then taking out a 10k btc loan one year you may only have to repay 5k btc the next year, for every negative their is an equal and opposite positive..

as for other people thinking that loans can only happen if fractional reserves occur, thats wrong. credit unions dont fractional reserve their loans, they use account holders funds to hand out loans.

however there would need to be a way to control debtors who do not repay.. because due to fractional reserves. banks can hand out hundreds of thousands of "credit" because the real cost is only pennies on the dollar. so they have spare profitability to chase debtors, even if they cant get it all back. or even sell the debt out to other agencies. banks will never lose out.

credit unions only hand out smaller amounts and do it locally to reduce the risk/cost of debtor collections.

without a fractional reserve, i do not see "mortgage" size loans being justified. but small daily/weekly expense loans with locals (reduce transport/admin costs) could possibly work, with the right administration and rules inplace to make it efficient and workable

[Bitcoinpro]

yes because u can see where the money went and

why it didnt come back,

[Frodomaga]

I hate how debt has made the world the way it is.
Bitcoin should be the savior to help take people out of it not make more of it. 

[unamis76]

Bitcoin isn't here to pay loans that people couldn't afford neither is it here to pay loans given without any guarantees...

[macedoniantable]

Bitcoin isn't here to pay loans that people couldn't afford neither is it here to pay loans given without any guarantees...

I totally agree with you with that!
Loans are loans and should not be taken out from people who don't have the sufficent amount to pay it back. Or they will just forget about it and default on those loans.

[Bitcoinpro]

yes because with Bitcoins bad lenders will soon realise something

THEY CAN'T PRINT BITCOIN

[Cereberus]

Nothing can stop bad debts because usually bad debts are debts taken from people with bad intentions of not paying it back or without being in the position to have a chance to pay it back. Bitcoin cannot change that as bitcoin is still money no matter a perfect kind of money it still cannot remove or stop bad debts. That is something that has got to do with the people rather than bitcoin as form of payment. This will stop when people will know that they can pay back this X amount and only apply to get the X amount and not an Y amount which they know they can't pay back.

[yenxz]

It is better to work for it and be smart when it comes to debt. Think before you pay 1 % per month when you do this type of strategy, you will pay twice the percentage for those who lend
money you want flowers too . It is better to work for it and be smart when it comes to debt.

[lionheart78]

With the debt crises in the eurozone, bitcoiners have been advocating the use of bitcoin in place of fiat. I don't think that will solve the problem on ground, people will always borrow money whether cash or bitcoins. What do you think?

This is kinda complicated, first bitcoin isn't free, so they need to buy it.  Second, debt is debt, you need  to pay it no matter what currency you are using.  And third, it is true, people will borrow money if they need them, irrelevant to what they are using, bitcoin or fiat money.  I think the situation will not change.  Debt still  debt even after using bitcoin.

[Doamader]

This forum loan service helps a lot people and offers a good interest. Sure there are several people lending and taking the risks around the lending market, but there are people honest really paying a fee for some loan here, soo sure bitcoin is a powerfull tool, it may help as long you repay your loan.

[crairezx20]

This forum loan service helps a lot people and offers a good interest. Sure there are several people lending and taking the risks around the lending market, but there are people honest really paying a fee for some loan here, soo sure bitcoin is a powerfull tool, it may help as long you repay your loan.

Yeah right before i loan here and its really help if i need an emergency after few days or 1 week i repay them.. even its a small amount of interest they are happy that we are paying after loan..
Also here in my country we have now loan no need collateral but they need to clarify if you are real human and giving your monthly payslip for yor job before they check and if you are qualified you will receive your loan bitcoin to your wallet coins.ph wallet..

[bitbunnny]

Debts will be always present, including bad ones and Bitcoin can't stop this. But Bitcoin maybe gives some alternative that should be easier available to the people who can now avoid strict conditions and high interests given by the banks and get more affordable loans. On the other side, there is Bitcoins volatility that could get you even in the deeper debt when the price gets high up.

[Dank14]

People take loans on this forum, what is stopping banks from giving bitcoins loans in the future only to discover those people can't pay back? Bitcoin is money too you know.

[utkarshm]

Borrowing bitcoins to pay debts is a really bad idea i think because one day borrowed bitcoins should also have to be returned and in that case if bitcoin price rises too much which is expected then the borrower will be in real trouble and in more and more debts.

[Meuh6879]

With the debt crises in the eurozone, bitcoiners have been advocating the use of bitcoin in place of fiat. I don't think that will solve the problem on ground, people will always borrow money whether cash or bitcoins. What do you think?

Oh yes, it solves many things ... https://www.youtube.com/watch?v=joITmEr4SjY