Loans in BTC

[Frodo]

Long-term loans in BTC are possible? Because of defation.

[Nefario]

Loans are currently a little problematic. As thevalue of the currency rises over time.

This was highlighted when we were chasing stevenbuck for money he'd pretty much defrauded some users, many many months ago.

It was about 10,000btc, and worth about 200usd at the time, but only a few month later that value rocketed as the value of bitcoins relative to usd rose.

That could be a nasty poverty trap.

[FreeMoney]

Some people are used to thinking they should borrow whenever it's available and it will be easier to repay later, this isn't even true with inflatobux because of the interest rate usually charged, but with coins you really need a good reason to borrow imo. The safest thing to borrow for would probably be mining since your income will be denominated in coins. Not saying that's perfectly safe or anything, just that you'll get positive exposure to the bitcoin price and not just the downside of owing them.

[Mahkul]

Or, some people who assume high deflation can even make you repay a little bit less than you borrowed (still not less enough to deprive them of their calculated profit) - the same way they make you repay more than you borrowed now. It's pretty mind twisting.

[Raulo]

Or, some people who assume high deflation can even make you repay a little bit less than you borrowed (still not less enough to deprive them of their calculated profit) - the same way they make you repay more than you borrowed now. It's pretty mind twisting.

How is it better than keeping coins in the wallet and not lending them?

Any money system has 0 interest rate bound. Cash brings you 0%, it's always better to have 0% than negative interest.

By the way that's one of  the reasons Keynesians hate deflationary currencies.

[granrojo]

long-term loans in BTC are possible? Because of defation.

When you get paid your wages in Bitcoin there will be no reason why you can't borrow in Bitcoins 

But generally borrowing in a different currency to what you have a reliable income in is a bad idea. Well, unless the actual aim is currency speculation.

[tomcollins]

Long-term loans in BTC are possible? Because of defation.

Sure, it just will be something accounted for.  Just like inflation is accounted for now by people loaning the money.

It still can be profitable to take a loan.  Plus, deflation only happens by the bitcoin economy expanding.

[donovansly]

I use borrowbitcoin . net  for my cryptocurrency needs they allow you to get a bitcoin loan with a deposit and you can deposit multiple different cryptocurrencys and once you pay back your loan you will get your deposit back!

[Miracal]

There are so many websites out there which provide loans in btc or accept btc to provide loans, and I have used a few websites. Just google it, don't worry they are reliable and they will process transactions fast and smoothly. I think taking loans in terms of btc can sometimes be really profitable or sometimes really a big loss because you are dealing with a currency which is highly volatile, no fixed prices.

[HarHarHar9965]

I don't think going through the economic hassle of borrowing money is worth it, especially if I need to cash it in dollars before spending it. If I need to buy btc for investing it online or trading it when in need, yes I might consider that, hell I would even recommend that to others but I don't think I would ever borrow btc which I need to pay back as btc because its volatile and also, complicated for borrowing.

[Nizam ibrahim.P.N]

Loans in BTC creates new good vibes for the people..

[Hugroll]

long term loans are usually sent with the value in $usd not btc. that way the major price fluctuations of the bitcoin wont really affect the lender.
and the lender will always come out with profit in the end.

[Possum577]

Long-term loans in BTC are possible? Because of defation.

Sure it's possible!

The greatest risk to BTC lending isn't currency risk, it's repayment risk. It's easy for someone to "take the money and run" since there are no reversals of transactions and no credit bureau to ostracize the defaulting borrower in the eyes of all future lenders.

Deflation is an interesting consequence though. But it only hurts the borrower, and that penalty is something I'm OK with. Borrowing shouldn't really benefit the borrower as much as it benefits the lender.

[cellard]

Long-term loans in BTC are possible? Because of defation.

Sure it's possible!

The greatest risk to BTC lending isn't currency risk, it's repayment risk. It's easy for someone to "take the money and run" since there are no reversals of transactions and no credit bureau to ostracize the defaulting borrower in the eyes of all future lenders.

Deflation is an interesting consequence though. But it only hurts the borrower, and that penalty is something I'm OK with. Borrowing shouldn't really benefit the borrower as much as it benefits the lender.

I am still waiting for a service that is serious enough that it makes me consider doing some serious loans beyond some microloans here and there, but i just can't trust BTCJam, not even if the borrower is credit with A+ levels, I need more. Apparently tons of A+ people defaulted and just nothing happens, you just lose the money thats all.

[Quinn]

Long-term loans in BTC are possible? Because of defation.

Applying for a Bitcoin loan is pretty much the same as applying for a loan in a bank.  You have to have an online account and then the procedure are just the same.

[Poppy]

Long-term loans in BTC are possible? Because of defation.

I think for now lending your bitcoin is a good move.  The interest rate in lending your bitcoin and making it an investment is high.

[gentlemand]

Applying for a Bitcoin loan is pretty much the same as applying for a loan in a bank.  You have to have an online account and then the procedure are just the same.

What? You go on here and try to convince some extremely sceptical people that you're good for it and have to put up collateral. There's no automated process and it'll probably all turn to shit anyway. You'd have to be dumb to ask for a loan or provide one. I don't get that section of this website at all.

[NorrisK]

Long-term loans in BTC are possible? Because of defation.

Sure it's possible!

The greatest risk to BTC lending isn't currency risk, it's repayment risk. It's easy for someone to "take the money and run" since there are no reversals of transactions and no credit bureau to ostracize the defaulting borrower in the eyes of all future lenders.

Deflation is an interesting consequence though. But it only hurts the borrower, and that penalty is something I'm OK with. Borrowing shouldn't really benefit the borrower as much as it benefits the lender.

And if bitcoin price increases by 10% in your loan running time, it basically means you have to pay an additional 10% interest.

Unless you peg you loan in USD instead of btc ofcourse, which would probably be the smart thing.

[pattu1]

Long-term loans in BTC are possible? Because of defation.

Sure it's possible!

The greatest risk to BTC lending isn't currency risk, it's repayment risk. It's easy for someone to "take the money and run" since there are no reversals of transactions and no credit bureau to ostracize the defaulting borrower in the eyes of all future lenders.

Deflation is an interesting consequence though. But it only hurts the borrower, and that penalty is something I'm OK with. Borrowing shouldn't really benefit the borrower as much as it benefits the lender.

And if bitcoin price increases by 10% in your loan running time, it basically means you have to pay an additional 10% interest.

Unless you peg you loan in USD instead of btc ofcourse, which would probably be the smart thing.

If your peg your loan to USD, it really isn't a BTC loan, is it?
I would say a BTC loan over a long term isn't a wise idea.

[gentlemand]

I would say a BTC loan over a long term isn't a wise idea.

That's not gonna stop people trying. I wonder how many successful ones there've been where all parties came out smiling. Probably not too many.