Debt and Crypto?

[verita1]

The banking system has to be treated separately when we talk about crypto. Because it is a system that is being replaced little by little by the defis. In these cases of uses the bank does not participate. There are already debit cards loaded with crypto designed especially for users, there are loans whose support that users have are cryptos. The bank would have to take a big step to offer its users traditional crypto-backed services.

[AicecreaME]

I was wondering what everybody's thoughts were on issuing debt based on cryptocurrency. Debt is an extremely important factor for economies to grow. In a simple example, very few people would actually be able to purchase a house without debt. If you can't purchase large cost items like cars and houses, to name a few, the economy will literally collapse. Not to mention that transportation would become a very big problem. There's more examples to be made for starting businesses and many more but I won't discuss that in my original post.

Cryptocurrency is not inherently a debt instrument and cannot simply be "printed" or issued past its limit. I know a lot of people here feel that banks should die and banks are evil, but realistically I don't see how an economy can survive without debt instruments and issuers. If Bitcoin does replace all currency, does this mean that banks will collapse, or issue their own cryptocurrency to 'lend coins' to people who would like to make a big purchase and pay it off over time? Would it even be possible to pay interest back on a large scale if a coin has a finite supply? If there is 21 million Bitcoin in debt lent out and circulating, how could there possibly be a way to collect more than that by the bank. Would multiple cryptocurrencies solve a problem like that, or would it mean that the debt just gets pushed off onto some other coin and then also onto another infinitely?

I love Bitcoin and all this technology, however I have not theorized a way in which it can completely rework debt instruments and the institutions that supply them. IE: Banks.

Would love to have a discussion going on this topic. I have pretty limited economic logic!

I agree with you that banks are not really evil because these central organizations are the ones behind why the economy of each country is still intact. Without banks, many countries would collapse because majority relies on the debts.

Debts aren’t necessarily bad. It just depends on how the debtor manages and allocate the money he borrowed from the banks. There are good debts and bad debts. The bad debts are those that does not bring income and are just spent over expensive and non-essential things or projects. On the other hand, good debts are those that generate income and are spent over important things, projects, and programs so that the citizens can benefit.

In crypto world, I think there’s already existing some sort of process like those of banks where they could borrow certain crypto. I’ve read a thread in marketplace perhaps where the users here can borrow any as long as their account has reputable history such as good no negative tags, much better if it has trust, and is already at high rank (been in crypto world for a long time). In addition, the user must post in the thread how much he wants to borrow, the span of time he can repay, and of course a collateral so that it’s guaranteed to be paid by the borrower.

[tbterryboy]

The banking system has to be treated separately when we talk about crypto. Because it is a system that is being replaced little by little by the defis. In these cases of uses the bank does not participate. There are already debit cards loaded with crypto designed especially for users, there are loans whose support that users have are cryptos. The bank would have to take a big step to offer its users traditional crypto-backed services.

That is the great thing about defis that I am very much in love with nowadays, they have created a blockchain that could actually represent people like banks without the need of authority and centralization. One day we are going to have something that is so decentralized and in a way that does everything a bank does that people will stop needing banks and I think that will be the day when we are actually doing awesome.

Banks are the only reason why I got involved with crypto and it is going to stay that way, I am using a digital bank now and I do not have any physical space for my bank, and that was a big improvement for me, if I can stop with that and move fully towards having a decentralized situation without any banks but still able to use my money everywhere I go? That would be insane.

[CarnagexD]

I'm seeing banks as not completely dying once bitcoin gains traction over mainstream media but wiuld take measures to integrate themselves to the new world. Like what the OP stated, they can set a buy crypto with us now, pay it later scheme to help investors jumpstart or boost their portfolios while still keeping their commerce alive. They wouldn't be easy to go down especially if we consider the fact that most banks have been here before our grandmas were born. Not that it's a good thing, but not a bad thing either. So unless we create or discover a complete replacement for banks, this is what I assume will be the case for the years to come.

[AndySt]

I'm seeing banks as not completely dying once bitcoin gains traction over mainstream media but wiuld take measures to integrate themselves to the new world. Like what the OP stated, they can set a buy crypto with us now, pay it later scheme to help investors jumpstart or boost their portfolios while still keeping their commerce alive. They wouldn't be easy to go down especially if we consider the fact that most banks have been here before our grandmas were born. Not that it's a good thing, but not a bad thing either. So unless we create or discover a complete replacement for banks, this is what I assume will be the case for the years to come.

It seems that even now payment transactions and payment acceptance are not the main source of income for modern banks, so I think the idea of a threat to the banking sector coming from cryptocurrencies looks a little far-fetched. There are payment services for such things, and that's where you can look for potential conflicts of interest. Banks, as financial organizations that accumulate financial resources and issue the necessary amount to their customers, remain afloat and, if allowed by regulatory state organizations, will also lend cryptocurrencies.

[TopT3ns]

I'm seeing banks as not completely dying once bitcoin gains traction over mainstream media but wiuld take measures to integrate themselves to the new world. Like what the OP stated, they can set a buy crypto with us now, pay it later scheme to help investors jumpstart or boost their portfolios while still keeping their commerce alive. They wouldn't be easy to go down especially if we consider the fact that most banks have been here before our grandmas were born. Not that it's a good thing, but not a bad thing either. So unless we create or discover a complete replacement for banks, this is what I assume will be the case for the years to come.

It seems that even now payment transactions and payment acceptance are not the main source of income for modern banks, so I think the idea of a threat to the banking sector coming from cryptocurrencies looks a little far-fetched. There are payment services for such things, and that's where you can look for potential conflicts of interest. Banks, as financial organizations that accumulate financial resources and issue the necessary amount to their customers, remain afloat and, if allowed by regulatory state organizations, will also lend cryptocurrencies.

Of course, if only relying on payments and receiving payments will not make the bank grow and become a bank with very much wealth, the bank must increase its use to get a lot of money, by providing credit, loan, capital and other offers, essentially giving money to them. customers with a few percent interest, well the bank will benefit from a percentage of the interest.

[jostorres]

Of course, the dept is something very bad and brings nothing but troubles.

That happens when loans/debts are taken without prior planning of how you should return it and what are your plans on using the money you took to get something extra out of it. If you see you would earn less than the interest you will pay then obviously don't take a loan.

I had a lot of problems as I decided to buy a car in dept, but the problem was I had no money to pay for my debt, and only in three months I started receiving calls from a debt collecting company.

Don't mind me saying but that is the worst attitude, not having backup and taking loan to buy a car is like
'let's enjoy today , what happens tomorrow, I don't care!'

They called me unstoppable. It was not right as they did not give me a quiet day. Thankfully I found a law company that helped me resolve all the problems as my rights have been violated. If you have the same problem, I think it would be helpful for you to check the site I am talking about. So if you are interested, just check how <removed url> works. Stay safe and have a  wonderful day!

You are lucky that you came out of this because it is nearly impossible when you don't have earnings and you spend like a king without thinking of future consequences.

[kramchers]

If ever Bitcoin in the near future will become a world currency, I guess in your statement you were right that all bank companies in  the whole world will be gone for sure. Because ever payment options will be based on Bitcoin transaction. And about debt, I don't know actually, if that happens, but one thing for sure I know is that Bitcoin will really be spike for sure in the future.

[shoreno]

If ever Bitcoin in the near future will become a world currency, I guess in your statement you were right that all bank companies in  the whole world will be gone for sure. Because ever payment options will be based on Bitcoin transaction. And about debt, I don't know actually, if that happens, but one thing for sure I know is that Bitcoin will really be spike for sure in the future.

i dont think it can because theres so many countries that ban bitcoin but if let say all countries are now legalizing btc i still dont think that banks will be closed because bitcoin supply is not unlimited but money printing can be and banks are the only one that can do that . about debt , it can always happen to most of us that are in tight situation  but debts cant make the price rise because people are going to have a hard time buying a coin if they have debt and they are also going to sell thier coin for cash to pay the debt .

[AIF]

I'm seeing banks as not completely dying once bitcoin gains traction over mainstream media but wiuld take measures to integrate themselves to the new world. Like what the OP stated, they can set a buy crypto with us now, pay it later scheme to help investors jumpstart or boost their portfolios while still keeping their commerce alive. They wouldn't be easy to go down especially if we consider the fact that most banks have been here before our grandmas were born. Not that it's a good thing, but not a bad thing either. So unless we create or discover a complete replacement for banks, this is what I assume will be the case for the years to come.

I agree with you banks will switch to lending cryptocurrency one of the options is shown
https://bitcointalk.org/index.php?topic=5267705.msg54966182#msg54966182
The proposed project has a solution for lending cryptocurrencies backed by smart contract tokens without fear of losing financial assets in the event of negative market volatility.