would this be a good idea for doing safe bitcoin loans?

[andrewboy44]

To get a loan on bitcointalk.org you must have some type of collateral. Someone should design a coin and premine it all the way out so that they own 100% of the coin. They should then create a website where people can go buy the coin with moneypak, perfect money, etc. Each coin should be valued at 5 dollars since loans tend to be big anyways. When you need a btc loan but don't have time to wait on coinbase or whatever your method is of getting coins you simply go get a moneypak (or whatever forum of money accepted) and go to the collateral website and purchase coins equiv. to the needed btc amount. You then come on bitcointalk.org and make a post for how much btc you need loaned and offer your collateral coins as collateral. If the users fails to repay the btc you just go to collateralcoins.com (just a name. not really the website) and redeem your coins for paypal, moneypak, etc. It would be up to the lender how many collateral coins the person wanting the loan will need to pay you. I suggest doing 125% just in case btc jumps up overnight like it has been doing lately and someone just runs off with your lended btc. With this method their would be one universal form of collateral and make the loan process simple. The only place that you would be able to buy or sale collateral coins at would need to be the website. I don't want to try to implement this idea because it would take to much work for me plus a user with A LOT of trust is needed for this. Let me know what you think about this idea, and if there is a trusted member on the forums willing to do this! I have a sha256 guide that I could give you too so you could build your coin in 4 hours or less.

[Rupture]

Yeah your idea kinda makes sense but there has to be some willing to buy your CollateralCoin

[andrewboy44]

Yeah your idea kinda makes sense but there has to be some willing to buy your CollateralCoin

The people buying the collateral coin would be the people that need to get a loan but don't have time to wait on coinbase, mtgox, etc.

[franky1]

so say i need $100 loan.

instead of requesting 0.23BTC and offering X% interest or looking at loan givers interest rate for 0.23BTC.. and negociate the normal way on agreed terms etc... and then the money comes to me..

im suppose to buy a collateral coin? to use as a trust method of repayment or as an insurance against running off..

although i personally give out loans and have never needed to ask for a loan. most people that need EG $100, wont actually have money in their pocket to buy this collateral coin, else why need a loan in the first place.

secondly if you propose that they only need to buy in lets say a $5 collateral coin to gain $100 of trust. then there will be many people that will think great, lets make a sock puppet name, buy in $5, get $100,, and run....

please use a better scenario as to how you see a successful loan of $100(0.23btc) work

[andrewboy44]

so say i need $100 loan.

instead of requesting 0.23BTC and offering X% interest or looking at loan givers interest rate for 0.23BTC.. and negociate the normal way on agreed terms etc... and then the money comes to me..

im suppose to buy a collateral coin? to use as a trust method of repayment or as an insurance against running off..

although i personally give out loans and have never needed to ask for a loan. most people that need EG $100, wont actually have money in their pocket to buy this collateral coin, else why need a loan in the first place.

secondly if you propose that they only need to buy in lets say a $5 collateral coin to gain $100 of trust. then there will be many people that will think great, lets make a sock puppet name, buy in $5, get $100,, and run....

Noo thats not what I mean... Lets say they wanted a 100 dollar loan for btc then they would buy 20 collateral coins (more if the lender request more for safety). And ideally this would just be for people needing quick btc. Not people that don't have money.. But like I said its just an idea. I don't plan on implementing it but it would be cool to see a trusted member do it.

[franky1]

Noo thats not what I mean... Lets say they wanted a 100 dollar loan for btc then they would buy 20 collateral coins (more if the lender request more for safety). And ideally this would just be for people needing quick btc. Not people that don't have money.. But like I said its just an idea. I don't plan on implementing it but it would be cool to see a trusted member do it.

so if someone wants 0.23BTC ($100) they buy 20 collateral coins at $5 each, using moneygram/moneypack and then use this to get the 0.23btc...

hmm why not just use moneygram/moneypack and get 0.23btc without bothering with collateral coin. it takes the same time to buy an alt coin as it takes to buy a bitcoin

[andrewboy44]

Noo thats not what I mean... Lets say they wanted a 100 dollar loan for btc then they would buy 20 collateral coins (more if the lender request more for safety). And ideally this would just be for people needing quick btc. Not people that don't have money.. But like I said its just an idea. I don't plan on implementing it but it would be cool to see a trusted member do it.

so if someone wants 0.23BTC ($100) they buy 20 collateral coins at $5 each, using moneygram/moneypack and then use this to get the 0.23btc...

hmm why not just use moneygram/moneypack and get 0.23btc without bothering with collateral coin. it takes the same time to buy an alt coin as it takes to buy a bitcoin

someone asked the same question in my other post!

Why doesn't the lendee just offer the moneypak/whatever as collateral?

Because thats not safe. They could  give the code to the lender and the lender just redeem it and not send btc. Its always possible though. You could simply just give them the moneypak code but it would have to be someone with great trust. With this method you could set up a third party to send both items to and have a 100% guarantee that nothing could go wrong. If they fail to repay the loan then simply cash on their collateral coins. But it's just an idea

Edit: or the collateralcoins website could offer to be the third party making everything even simpler

[andrewboy44]

The only reason I thought of this idea is because there are a lot of people that claim they have no type of alt coin to use as collateral plus this idea makes lending coins almost 100% secure

[franky1]

what i mean is.
i can moneygram $100 into okpay and get bitcoin.. i trust okpay wont run off with my moneygram order as they are established business..

so why would i moneygram $100 into one guy to get some collateral coins, to then find a lender who accepts collateral coins for bitcoins knowing that:

the collateral coin 'broker' will want a fee (much like okpay does)
the process is longer
and obviously at some point i would have to repay the lender the 0.23BTC +a fee/interest back(because its a loan) and get returned the collateral coins which i then have to decide to cash out back to money gram or find another use for. which costs more fee's.

if someone wants 0.23btc and has $100. why would they go through all this process knowing a loan needs to be repaid and then having the headache of trying to do something with collateral coin/moneygram again.

if they have the money, they'd just buy the btc direct.

in my experience of giving loans. people only need btc if they cant get FIAT into the crypto markets. so you proposing they buy a crypto coin and take out a loan.. is just ... how can i put this gently.. obsurd.

when i do loans i personally get their ID details and deal with people locally that dont have fiat to their name, but do have household goods or something worthy of taking them to small claims court to cover costs.. this is the same as any other legit loan giver.

if they have money and able to get a moneygram. i simply point them to okpay and tell them to not waste their time with loans. and just buy a coin and know its theirs.

[Rival]

Only an fool would take out a loan in an appreciating currency and only an idiot would loan it out.

When you are talking about loans in bitcoins you are discussing scammers and scamees.

[franky1]

Only an fool would take out a loan in an appreciating currency and only an idiot would loan it out.

When you are talking about loans in bitcoins you are discussing scammers and scamees.

not always scams and scammies. my loans are to friends i know personally so i can indeed slap them with a wet fish if they did me wrong. plus if i gave them 0.23BTC they know its in their best interest to turn their received 0.23 into profit fast (i dont charge them interest) but if they can turn 0.23 into 0.25 by playing the FTC market on btc-e.. they get to keep the 0.02.

its alot better then me hoarding my coins, as it helps them out.

[Phinnaeus Gage]

And once the first collateral site is up and running, Matthew, Atlas and I are going to team up and start collateralvalidation.com to centralize all Bitcoin collateral sites.

[niothor]

So let's build a coin to be used as a collateral for bitcoin , and that will have a fixed price?
This is not how the economy works.

Also , why not use litecoin?
Also , if you can purchase this alternate coin with moneypak why not purchase bitcoin instead?
It's a bit early in the morning , i haven't had my coffee but it sounds like:

"When NASA first started sending up astronauts, they quickly discovered that ballpoint pens would not work in zero gravity. To combat the problem, NASA scientists spent a decade and $12 billion to develop a pen that writes in zero gravity, upside down, underwater, on almost any surface, and at temperatures ranging from below freezing to 300 degrees Celsius.

The Russians used a pencil."

[Snail2]

To get a loan on bitcointalk.org you must have some type of collateral. Someone should design a coin and premine it all the way out so that they own 100% of the coin. They should then create a website where people can go buy the coin with moneypak, perfect money, etc. Each coin should be valued at 5 dollars since loans tend to be big anyways. When you need a btc loan but don't have time to wait on coinbase or whatever your method is of getting coins you simply go get a moneypak (or whatever forum of money accepted) and go to the collateral website and purchase coins equiv. to the needed btc amount. You then come on bitcointalk.org and make a post for how much btc you need loaned and offer your collateral coins as collateral. If the users fails to repay the btc you just go to collateralcoins.com (just a name. not really the website) and redeem your coins for paypal, moneypak, etc. It would be up to the lender how many collateral coins the person wanting the loan will need to pay you. I suggest doing 125% just in case btc jumps up overnight like it has been doing lately and someone just runs off with your lended btc. With this method their would be one universal form of collateral and make the loan process simple. The only place that you would be able to buy or sale collateral coins at would need to be the website. I don't want to try to implement this idea because it would take to much work for me plus a user with A LOT of trust is needed for this. Let me know what you think about this idea, and if there is a trusted member on the forums willing to do this! I have a sha256 guide that I could give you too so you could build your coin in 4 hours or less.

It's called ripple XRP. Unfortunately it doesn't worth $5.

[Sniar]

its good profit if you take something for the loan

[cuteman]

And once the first collateral site is up and running, Matthew, Atlas and I are going to team up and start collateralvalidation.com to centralize all Bitcoin collateral sites.

And when are you going to start the site?