Debt and Crypto?

[ShiftKeyBroken]

in a way, crypto is the opposite of debt. it represents freedom from the bondage of work and debt.

[blueteam09]

I do not think this is a good idea, although Debt is a decisive factor in the development of the economy. But essentially crypto and Blockchain technology are anonymous technologies, and we do not know who owns the Debit token. I think we have to have a different technology to help us understand who owns them if they want to grow based on crypto. But this is really hard because no country is researching, developing or promoting them so this is unlikely.

[gantez]

I don't think that banks will be totally wiped away even when bitcoin is assume to begin to play the role of banks because banks provide a third party service which bitcoin is not known for but p2p. Banks can adjust to certain operational function to accommodate the use of bitcoin particularly in huge business transactions.

[BitHodler]

If someone is taking a loan from bank in order to invest that money into bitcoin or other crypto currency, he surely will be able to make huge money out of that.

Not necessarily. It all depends on the person itself, and the understanding of the market he is investing his borrowed money in. There are enough examples of people having lost their mortgage funds due to bad decisions.

I personally find taking out loans for investment purposes to be the most stupid and mentally retarded thing people can do. Especially in case of a mortgage, or even a second mortgage, you'll be in debt for life if things go wrong.

People only think about the positive aspects of investing, which is just stupid. Investing with borrowed money contributes to you experiencing heavy pressure, mental instability, and to some extent carelessness.

People quite often tend to take more risks with capital that isn't theirs, which is actually weird, because you would expect these people to be more careful with money they borrowed due to the potentially negative consequences.

[pogiparin]

I think it is a big risk if you will incur debt just for cryptocurrency. There are a lot of investment opportunities and I would recommend that you invest on stock market as it is safer and more guaranteed.

[justdimin]

About the debt problem people can use it to pay interest on a large scale using the satoshi as unit. If 1 satoshi is equals to 1$, It would be possible to pay large scale interest using btc and lending is not an issue because it can also be done using btc. Another roundabout solution to this problem is the creation of a new coin dedicated to it, but the coin itself might not be decentralized.

Obviously, I would not expect a currency from the banks to be decentralized. Moreover, each bank cannot just decide to start launching their own cryptocurrency since they have a central bank that regulates the whole thing, so in that case, I can see government coming up with something and letting that roll out for anyone who may want to borrow.

One thing I have known is that things always do end up rectifying themselves in the long run, and worrying about banks being discarded is something I don't see happening.

[malikusama]

You are stating two different versions of financial system, conventional system or banking system is different form financial system comprises of purely digital currencies/assets.
Unfortunately our conventional economic system doesn't support a currency with having finite supply and without debt.
As far as we are living in this conventional financial system, digital currencies can't take over the fiat or banking system, this means more awareness and user support is needed to implement digital financial system and to get rid of the banking system.

[wuvdoll]

Well, relating that to the supply that you mentioned, in that case, I want to assume that the finite supply may not be a real problem as there must have been a huge demand for the banks to have even experienced being threatened in the first place and we all know how adoption would have been like for the bitcoin's value.

I am sure there should be enough in satoshis to probably go around, or maybe even if there is not, like you said, other cryptocurrencies may come to play. I really do not like assumptions anyway, but let's face it, I do not see cryptocurrency would throw banks to the garbage; they will not stop existing one way or the other and blend with the evolution.

[TheGreatPython]

It is also a privilege to those who have nothing but the only problem is on how they are going to pay such expensive goods, houses and cars?

It's actually very simple, if you don't have anything, you don't buy anything. Debt is indeed a way to overcome the temporary lack of financial resources, but at what cost? If we look at the younger generation having nothing and resorted to loans to fill up their gaps, it's safe to say that they have made the situation worse for themselves. It was stated that in the last decade  the total debt of the younger generation has tripled in number, which is a worrying development. That's what you get when banks and other financial institutions are so easily allowing people to get into debt, and the shocking part is that this will not stop and likely triple again in the next decade. Great system this is....

I see debt as being a slave to the government we all decided to put there and the worst part is that we fall for it so much and we end up keep enriching the banks with the so called interest. Probably, they would rather prefer the lower classes to remain there and not liberated until they are so debt ridden and they keep winning up there. Debt sucks and I see debtors as those who are just trying to live a life they cannot even sustain and that even sucks more. Like Richard said, if you do not have anything, you do not buy anything.

[maxj57634]

I think it is a big risk if you will incur debt just for cryptocurrency. There are a lot of investment opportunities and I would recommend that you invest on stock market as it is safer and more guaranteed.

Investing in stock market doesnt guarantee you profit. There are still losses in any investment adding to that investing in stock will take you along time to see the ROI or profit while if you invest in crypto currency there is a small chance that your investment might double.

There is no guarantee when it comes to investing no matter if its stocks or other form of investment.

[maculeth]

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!

if for example there is a bitcoin loan for the supply of 21 million bitcoin, and for those users who want to debt on a large scale and with a certain period of time, interest on a considerable scale will make them object.

okay if there is a significant increase of bitcoin and some people who owe can benefit and pay back to pay the interest.

but if for example the bitcoin price actually goes down, it will make their load bigger, we know that bitcoin is fluctuating, so we can not predict the price well, and of course the determination of interest here will also be a bit difficult. bitcoin parties also certainly do not want users to get a lot of losses.

[CryptoBry]

I see debt as a poison that slowly but surely has become a tool that allows the upper layer to suppress the lower class of the society. We're living in a system that's purely based on debt, and build up with debt. Central banks keep printing money like it's nothing, just to keep the economy going. People are able to take out loans and mortgages that don't represent their own financial capabilities, which basically means that financial institutions are willingly putting people into debt. I am anti any form of debt, and handle the main principle being that if you don't have the money for it, don't buy it.

Technically there are certain ways to allow whatever entity to issue certain crypto tokens endlessly, just like central banks are able to print money, but that doesn't change anything from the fact that you're not improving anything. The only thing you're doing is relocate the problem and give it a different name. Nah, debt in whatever form of shape is poison.

I agree with your views on debt. Debt is truly a modern tool for slavery by willing victims...in fact people are so eager to get into debt with some level of excitement (symptoms of greed and being a victim of our over-commercialized world). The debtor is always under the choke of the one giving off the debt, generally speaking. However, if properly managed and in good terms debts can be having positive impacts too. In fact, we have to get into a balanced state otherwise we can get burdened by things we should be avoiding with.

[rokas]

To tell you the truth I would not like be a person who is going to lend in cryptocurrency. Just imagine. You have lent 1 BTC when it was about 2000USD and even now bitcoin value is about 8500 USD...

[Falmera]

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!

If that is the case, just like the fiat money, I think it is possible for cryptocurrency to be loaned. Maybe there are some investors there have their bitcoins loaned. I just cannot imagine how it works to think that the value of the coins is volatile.

[hacekd]

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!

the problem is quite complicated when the relationship between the bank and crypto, there are banks that do not accept and there are also banks that accept, it is difficult to solve it, I think we can change some alternatives from bitcoin into money, many applications that provide it only possible tax will be great that we get

[Razick]

It will be quite tricky to give out debts in cryptocurrency but with enough data and planning I think it's possible. Banks found a way to do it and collect on payments, someone could figure out a way to do the same with crypto. It would need mass adoption first though and you would have to have crypto wallets linked to ssn so payments can be collected from the debtors.

[Fesatmas]

everyone has a different point of view. and this time with the opening topic providing an opportunity for sharing, both experience and knowledge of debt, both in the banking sector and others.
As for from my personal point of view, in the case of bank problems, if applied to a cryptocurrency loan this is quite neutralized appropriately, where there will be most of the bitcoins, whereas to make payments there is a huge risk if the additional interest is around 2.5%. imagine what the total must be paid. this is going to be more difficult. but in terms of a different understanding with a long time interval we will invest in bitcoin with a fairly large profit as well.

[SirLancelot]

Bitcoin is a really good thing and every one of us here loves Bitcoin for so many reasons. But I have never for once thought that the Bitcoin will replace our currencies, nope I have never had that kind of thought, maybe I see it differently from the way other people are seeing it.

I still believe that it will gain huge adoption but not the way some people here do describe it, I just think it will become a normal thing in the online world, an asset that people are going to love, most especially because they can transact money easily without stress and within few minutes (though it can be hours sometimes).

[tbterryboy]

Crypto is not a banking system, it is not compared to what you can do with credit cards or loans or anything like that, you do not get mortgage to buy a house from "dollar", that is the thing you use to buy and not place where you get the loan. Crypto is equal to dollars in this example, or if you want gold, because we call it digital gold for its limited nature, and you do not care about debt of your dollar and how you will pay it back to anything related to dollar itself, you do it towards banks that gave you that loan.

It means, if one day we move towards a lot more crypto world, you could always have banks that issue crypto loans. Why do we not have proper crypto loans right now? Because there is no regulations about it, the moment governments allow banks to issue crypto loans where if you do not pay back you will have a seize of your assets, we could always have that, just like dollars.

[Paycoinzzz]

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?

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

This matter I have been thinking for a long time and I have come to my conclusion. I think that due to the lack of transparency and the lack of headquarters, lending online will also be very difficult. Obviously, those businesses cannot recover debtors who don't want to pay off debt
In addition, due to legal issues in each country, Cryptocurrency cannot easily be operated comfortably.
Those are the great challenges that no government has the best solution to that problem. So lending Bitcoin is not possible at the moment and I believe that Bitcoin is not yet able to replace banks.