If the price of BTC goes up, I simply pay off the loan with the loan itself plus 1%. I end up not losing very much since I don't pay transfer fees on the fiat.
if the price of BTC goes down, I can buy more BTC which covers the 1%.
I'm going to respond to this with a quote from... yourself.
I believe the price will rise later.
You're expecting to lose money?
It's called a loan nimda.
There's a reason CoinLenders specifically prohibits lending to gamblers.
Answer the question. With the things I quoted, it follows that you expect to lose money on the loan.
There's many things I want to use the money for. For example, my bitvps annual bill just came in yesterday. I could also use the money to fund activities of TU.SILVER. Silver is below $19 last I checked and I would like to buy another 50 oz.
You didn't specify that before. Before, you simply had a plan that made no sense to anyone except yourself.
But it's beginning to look like the actual mechanics of how I hedge are clearly beyond a cursory explanation and I don't have time to get into it beyond what I have said -- this is a loan -- etc.
People normally don't lend blindly; they want to know what you're using the money for so that they can be reasonably sure that you can pay them back.
