The interrest rates of these so called loans are a joke.
Would they loan real money "under law" they would be already in jail for it
Why don't you do your homework before posting in future.
You try get a short term loan for interest rates of between 5 -10%, banks may offer lower interest rates but not on very short term loans, hell even the credit cards they love to give out so much charge on around 20% in some cases.
Bitcoin loan can be dangerous long term because of how volatile the price can be but it can go both ways. I have taken loans in bitcoin before then transferred that into fiat for spending and when the time to repay comes even with the interest included i am paying back less than i borrowed in some cases.
LOL maybe you do your homework first and compare 5-10% per anno with the rates of loans here.5-10% compared to them are more than peanuts.
You know how much 0.5% per day will be per anno ?You get short term loans with colleteral everywhere for way way less.
It's just that there's so much more risk here.
You're anonymously getting a loan, without any way of collection at all, as compared to the real world where the banks can send collection agencies after you.
The next bullshit.Most of them are asking 120% colleteral so where is the risk ?
Add to that the volatility of BTC, and you have a valid reason for higher interest rates.
He is lending in BTC its his choice.If he doesnt want the volatile he can lend fiat.Also in a longterm rising price he is making extra profit lending BTC.
Just to be clear. There is no penal law (I believe in anywhere) that penalizes people who charge exorbitant interest with jail time.
Stop beliving and start a real research if you are doing that business seriously.In every country the lombard is very regulated and has a max interrest rate given which he can charge per anno.
You are nothing else as a lombard since you are asking for collateral.If they charge more they will get 1.payment punishment 2.license revoked 3.jail time
And if you still claim that you are only a private person who lends money to friends and don't run a profitable business i would recommend to have a closer look to the usury act
Heck the banks charge 3%/month compounded on delayed payments and they have chance to take everything from the card holder in case he defaults. Compare that to how lending works here on the forum, if anyone defaults, what's our recourse? We can go to the courts, but we have to dox the guy first then the cost of litigation will likely be exorbitant too, so what's the point?
Do you have a bank license and are you regullated like a bank that you compare yourself to a bank ?
I would advise you using laws which are written for people like you instead of looking into banking law which have nothing to do with you