Bitcoin credit a problem?

[nobody123]

Hello,

I really like the Cryptocurrency movement and I am very interested in it. But I see another problem with BTC for world wide acceptance.

A lot of people need to borrow money in long term because they want to buy a house, car or whatever. But with the built in deflation of btc. Someone who gets 100 (10000$) BTC credit from me today and would pay in rates for 10 Years. In 10 Years maybe 100BTC = 100000$ so he has to pay me much more for the credit then hew would if he take a credit in normal FIAT currency like € or $.

Sorry for my bad English but I hope you get the point. I am happy to discuss this topic here

[DannyHamilton]

Hello,

I really like the Cryptocurrency U.S. dollar movement and I am very interested in it. But I see another problem with BTC dollars for world wide U.S. acceptance.

A lot of people need to borrow money in long term because they want to buy a house, car or whatever. But with the built in deflation of btc dollars relative to Mexican pesos. Someone who gets 100 (10000$) BTC $100 (1319.37 pesos) credit from me today and would pay in rates for 10 Years. In 10 Years maybe 100BTC = 100000$ $100 = 116.05 pesos so he has to pay me much more for the credit then hew would if he take a credit in normal FIAT pesos currency.

Sorry for my bad English but I hope you get the point. I am happy to discuss this topic here

Clearly nobody in the U.S. ever takes out loans in U.S. dollars since it is deflationary relative to the Mexian peso.  Instead everyone searches for the most inflationary currency they can find and takes out all loans in that currency, right?

If you take out a loan in BTC, then you'll pay it back in BTC.  Hopefully you'll be earning BTC at that time, and you'll be making your purchases in BTC.  You won't be concerned with what the BTC value is relative to that useless hyper-inflationary currency called U.S. dollars any more than you were concerned about what the value of your own national currency was relative to the Zimbabwe dollar between 2004 and 2010.

[BitAddict]

Hello,

I really like the Cryptocurrency movement and I am very interested in it. But I see another problem with BTC for world wide acceptance.

A lot of people need to borrow money in long term because they want to buy a house, car or whatever. But with the built in deflation of btc. Someone who gets 100 (10000$) BTC credit from me today and would pay in rates for 10 Years. In 10 Years maybe 100BTC = 100000$ so he has to pay me much more for the credit then hew would if he take a credit in normal FIAT currency like € or $.

Sorry for my bad English but I hope you get the point. I am happy to discuss this topic here

You should not lend bitcoins for mid/long term if the borrower is completely fiat related... because if bitcoin price increase he won't be able to pay back.

For that you can simply ask for fiat.... why you should ask for bitcoins?

[MoneyMorpheus]

Well I'm from a country where we have big inflation issues. And trust me when I say this, if you try to get a long term loan here you will have to pay horrible interests. And always read the small print just in case the loan repayment is not actually attached to another currency like dollars, making you owe the loaner more and more money over time. Car loans are actually made this way here. I know a lot of people that started paying 800 by month and right now are paying 1300. And if we hit hyperinflation...

So looking for an inflationary currency with low interest rates is like finding gold buried in your backyard.

I think btc is not meant for long term loans, unless there is a good chance the btc loaned earned more btc during the loaned period. But no one can actually guarantee you that, so it is risky...