Loans in BTC

[ajrah]

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

there is a Long-term loans section here so I think its really possible but I think for long term loans there should be a lock-in rate agreement to protect the lender from sudden fall of BTC rate.

[highaltitude20322]

Possible, but seems like it would be wise to peg it to some sort of benchmark since the swings in the price can be sort of wild over the long term..

[mirana12345]

One could always "bind" the loan with fiat counter value, but i'm guessing that would be counter productive, as we are trying to overwhelm people with crypto,
instead of faulty fiat finance system. But maybe it wouldn't be as bad to bind it to some of the other crypto currency, but in a certain range only, so that neither lender nor loan
taker gets burned with price oscillations..

[eternalgloom]

I'd say it's currently a bit safer to lend BTC than it was some time ago when the price fluctuated even more.

[Amph]

I'd say it's currently a bit safer to lend BTC than it was some time ago when the price fluctuated even more.

well you receive bitcoin whne you lend, so it's not really a problem, and i would say that it's safer because selling account has become a serious business, so you've always your ass covered as a need of a collateral

[pitham1]

I'd say it's currently a bit safer to lend BTC than it was some time ago when the price fluctuated even more.

It might be; but when you think long term, would you be comfortable borrowing btc?
I don't think so.

[Haven7]

All lenders would probably require some sort of collateral.

[Raimonn]

Loans in Btc are good for people that has earnings in Btc, if not there is a problem with fluctuations on market.

[kotwica666]

Taking loan now in BTC is suicide. Laws of the market are hard - supply and demand sooner or later make the price of BTC will continue to grow. If someone does not earn in BTC let it keeps away from such ideas.

[iram66680]

Loan in BTC can be tied to the fiat prices of Bitcoin but it would not be advantageous for the lender as the lender would want at least the original sum to be returned. Another con is deciding the exchange to use the prices, both the lender and the loanee have to decide on an exchange to use to weight the amount to be returned. When MT.Gox faced bankruptcy, prices were pushed down hence sites such as btcjam which uses prices from Mt.Gox had the loanee pay a huge sum of BTC

[litmore]

Maybe there should be a safe dollar rate incase if deflation and the loaning party doesnt loose out.

[Amph]

We even can't find a solution to prevent borrower who won't scam us, even with collacteral

Bitcoin volatility is much better than before, so i think we shouldn't worry too much about it
But i'm sure bitcoin price slowly raising over time, so lenders could earn more profit over time while borrower would be hurt to return what have they borrowed

why not?, if you have collateral you are  in a safe box, better than a escrow for me, i just sell the collateral and i'm done

just be sure to take a very good collateral maybe somethign that has a more value than what they asking for

[pitham1]

Loans in Btc are good for people that has earnings in Btc, if not there is a problem with fluctuations on market.

I agree. Probably miners are the only ones who could have earnings denominated in BTC.
Even for them, I am not sure if Bitcoin loans over a long tenor are a good idea.

[n2004al]

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

The main rule in the taking or giving money with interest is that can be taken or giving in the same currency in which you have the profit from that money or the earnings from you job. Only in this way (as giver or receiver) you are protected from the rise or fall of the price of the currency which you give or take with interests. So if you want to take money for creating a business you must take the money in the currency that you will have profit from the business you will want to create or the currency in which you have your salary. 

If we go to the question of this thread for both the parties it is in common inters to be sure that who receive have profits or earnings or salary or income in bitcoin. Only in this way, it will be sure that, at least from the change of the price of bitcoin, are protected both parties.

[bitart]

If you give the loan, it does not depends on the price of the bitcoin. For you it does only matter if you want to exchange it back to fiat, but in this case it doesn't matter if your bitcoin is from the payback of the loan or it was alway's at your wallet.
From the borrower side, it's really a possible risk if the loan and the income is in different currency.

[StevenLiang]

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

there is a Long-term loans section here so I think its really possible but I think for long term loans there should be a lock-in rate agreement to protect the lender from sudden fall of BTC rate.

You can't make "lock-in rate" agreement with BTC loans.
You need to see the object first. You loan in BTC, that's mean you need to pay it back with soem interest in BTC too.

How about the BTC price goes up wildly when we take the loan?
That's why never loan in BTC,
make loan in your local currencies, not from BTC.

In fact, how about the BTC price goes down wildly when we take the loan? want we give more BTC from contracts? you know the answer.

[addy boy]

A time comes in everyone's life when he/she is short of money, whether you are trying to buy a house or getting admission in an expensive college!! Loans are what you need at these times.. Now, if you've been using bitcoins for a while and understood it's basic concept , then you may opt for loans in btc, and repay them back in EMIs on a monthly basis! ! It's easier than you think. .Websites like btcjam.com can provide you loans in btc.

[1990BEARS]

Btcjam already prove that Bitcoin and loan need work....btcjam default rate is huge

[EternalWingsofGod]

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

There used to be a service called coinlenders that loaned BTC to people after trying to give them a credit rating
The service collapsed and the market has primarily been in the lending section since.
BTCAssets does this to a limited extent as well with WebofTrust

[crazyivan]

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

Deflation? The price goes up and up recently. Also, you loan BTC and repay BTC. No issue there.