Loan Defaulted [anog]

[shasan]

Just imagine, you have borrowed 1 BTC when BTC price was $10k. You earn $500/week and planned to repay the loan within 20 weeks. But when BTC increases to $60k+, it's not anymore possible for you to repay the loan within 20 weeks, nor even within a few years. Just sharing possible reason of the default.

When it was scheduled/rescheduled for the repayment the price wasn't high. It becomes high long after the repayment date have passed I mean after the loan defaulted. If the borrower had any intention then s/he could repay and/or atleast could contact with me. But s/he had never did that. The intention of defaulting from the beginning.

[1715223746]

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[1715223746]

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[1715223746]

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[BitcoinGirl.Club]

taking or giving a loan in crypto it's always a risk, for both sides of course.

All business has its own risks. In loan business it's safe to practice collateral but I understand for a small amount OP did not care. It's safer for lenders to give in crypto because price against USD does not effect him when price suddenly bulls which happened in this case. But unfortunately downside happened is since the price against USD was 10x it became huge amount for the borrower resulting not returning the loan at all. 

[JollyGood]

If his intention was to default from the beginning then why would he ask for $30 instead of $100 or $500?

It is possible he sold his account or had other motives, we do not know because he has not posted here. Even now his profile shows as him waking up after a long period activity, he last posted over two years ago in April 2020.

Anyway, his account now has many red trust therefore nobody will trust him again.

When it was scheduled/rescheduled for the repayment the price wasn't high. It becomes high long after the repayment date have passed I mean after the loan defaulted. If the borrower had any intention then s/he could repay and/or atleast could contact with me. But s/he had never did that. The intention of defaulting from the beginning.

[Little Mouse]

If his intention was to default from the beginning then why would he ask for $30 instead of $100 or $500?

Because you will not bigger amount of loan with such an account. That's how lenders think too. Maybe his intention wasn’t to default but he wasn’t in contact with shasan. This is stupid. He could have continue communication with shasan.

[Taskford]

If his intention was to default from the beginning then why would he ask for $30 instead of $100 or $500?

Because you will not bigger amount of loan with such an account. That's how lenders think too. Maybe his intention wasn’t to default but he wasn’t in contact with shasan. This is stupid. He could have continue communication with shasan.

Also that's how those people trying to take the trust of the lender since they want to make them believe that they will pay on time so that they can get bigger loans for second or third time and then they default to their loans. This happen for so many times that's why its good for lenders not to give a huge amount above to the value of their accounts since this is expected to happen to those kind of people.

[shasan]

the price against USD was 10x it became huge amount for the borrower resulting not returning the loan at all. 

That is not the case. The borrower defaulted the loan when it was around 30$. I have created the scam accusation now that doesn't mean it has been defaulted now. I have created now as the borrower has become active on the forum recently which may results loss of the community if I do not make aware about the scam/default.

[PX-Z]

True. Even if ETH price would decrease, I doubt any borrower would adjust the repayment.
But, in such case, if I were lender/borrower, I would definitely try to have a discussion and would look for flexible amount (in case, I wouldn’t be able to repay this amount, since the loan amount was small).

Just imagine, you have borrowed 1 BTC when BTC price was $10k. You earn $500/week and planned to repay the loan within 20 weeks. But when BTC increases to $60k+, it's not anymore possible for you to repay the loan within 20 weeks, nor even within a few years. Just sharing possible reason of the default.

Lenders and lendee probably knew the risks already that's why they still lend and borrow. These people are the one who believe 1 BTC = 1 BTC and you won't gain loss if you don't sell, although some offer USD rates which is more understandable although offer higher interest rate since this will always be a disadvantage to the lendee.

In anyway, this is not the first time OP experience their lenders defaults, so i guess their decisions will probably still the same.

[shasan]

True. Even if ETH price would decrease, I doubt any borrower would adjust the repayment.
But, in such case, if I were lender/borrower, I would definitely try to have a discussion and would look for flexible amount (in case, I wouldn’t be able to repay this amount, since the loan amount was small).

Just imagine, you have borrowed 1 BTC when BTC price was $10k. You earn $500/week and planned to repay the loan within 20 weeks. But when BTC increases to $60k+, it's not anymore possible for you to repay the loan within 20 weeks, nor even within a few years. Just sharing possible reason of the default.

Lenders and lendee probably knew the risks already that's why they still lend and borrow. These people are the one who believe 1 BTC = 1 BTC and you won't gain loss if you don't sell, although some offer USD rates which is more understandable although offer higher interest rate since this will always be a disadvantage to the lendee.

In anyway, this is not the first time OP experience their lenders defaults, so i guess their decisions will probably still the same.

You are right that who are investors for long time 1 BTC is 1 BTC but when the price is too up and borrower  are unable to repay then there might have some discount to the borrower. I cant remember now but I gave discount 80% to one of my borrower.