An absurd policy

[theonewhowaskazu]

The price of most alt coins is not stable in any regard. The additional amount above the amount of the loan is to protect the lender from price declines of the altcoin.

Your not a bank and this lending is for cryptocurrency, if you want to lend CASH and retain its value then get the licenses, pay the taxes and do so, if not base your business structure on what it is and that is cryptocurrency not fiat. You have masked the situation to fit your pockets and all the lenders looking at the lending of altcoins or any crypto coins in this definition above should get out of coins and open your own "PAYDAY CASH LOANS" store down the street.

This is cryptocurrency, when you loan 10 Litecoins out, You get 10 (plus interest) in return PLAIN AND SIMPLE!!!!, adjusting your rates to appease the fiat value is bullshit if you ask me, we didnt borrow 80 dollars off you we borrowed 10 Litecoins.

Dont try and be a bank unless you want them to come in and tell you how to run your lending structure, and tax you for it, and make you get a license and all kinds of other things we are protected from right now. its structures and thoughts like this above that made banks what they are today, if you monkey see the banks charging in the ways they do, and you monkey do what they do you will monkey need a bail out just like them in the future.

Just my 2 cents

wat

[cyberpinoy]

I added a couple lines too so wat scroll up and read and retain

[smooth]

The price of most alt coins is not stable in any regard. The additional amount above the amount of the loan is to protect the lender from price declines of the altcoin.

Your not a bank and this lending is for cryptocurrency, if you want to lend CASH and retain its value then get the licenses, pay the taxes and do so, if not base your business structure on what it is and that is cryptocurrency not fiat. You have masked the situation to fit your pockets and all the lenders looking at the lending of altcoins or any crypto coins in this definition above should get out of coins and open your own "PAYDAY CASH LOANS" store down the street.

This is cryptocurrency, when you loan 10 Litecoins out, You get 10 (plus interest) in return PLAIN AND SIMPLE!!!!, adjusting your rates to appease the fiat value is bullshit if you ask me, we didnt borrow 80 dollars off you we borrowed 10 Litecoins.
80% collateral.

Where did you get this crazy idea anyone here is talking about fiat value or dollars?

We're not.

If someone borrows BTC from me and uses LTC as collateral, I couldn't care less about the dollar value of either. But I sure as hell want the collateral (LTC) to always equal or exceed the amount owed (BTC). Therefore I am interested in the volatility of LTC/BTC value, and I will always require extra collateral to cover that risk. Otherwise I'm not lending money to some anonymous person on the internet (who might be a hacked account, bought account, scammer, etc.). It is just not going to happen.

[cyberpinoy]

wat

What if the person borrowing the coins is not using it for anything fiat, say like Im borrowing 10,000 dogecoins to trade them for other crypto, and increase my doge, or I am borrowing 50 litecoins to trade on a market, I am not using the coins for fiat purposes, but you are loaning them to me based on fiat values, how does that benefit the borrower? So now he is borrowing and using the coins only in the crypto world yet his rates are based on the fiat value, that makes the lender exactly like a fiat  centralized bank.

[cyberpinoy]

Where did you get this crazy idea anyone here is talking about fiat value or dollars?

We're not.

If someone borrows BTC from me and uses LTC as collateral, I couldn't care less about the dollar value of either. But I sure as hell want the collateral (LTC) to always equal or exceed the amount owed (BTC). Therefore I am interested in the volatility of LTC/BTC value, and I will always require extra collateral to cover that risk. Otherwise I'm not lending money to some anonymous person on the internet (who might be a hacked account, bought account, scammer, etc.). It is just not going to happen.

Unfortunately, you said it yourself, altho most of your post relates to the comparison in cryptocoins and their value, the main problem in your post is one little word........."Otherwise I'm not lending money<-----------" what did you say you were not lending again? cryptocoins or "MONEY" the minute you as a lender connect the lending with money, if you are a united states citizen you have broken the law and can be jailed for violation of lending and trust laws, those are the facts, sorry to say. that is how the USA is now able to tax certain trading organizations who deal with US dollars, as long as the trading site does not trade fiat they can do what they want but as soon as they add USD market to their program they are suseptable to the laws and regulations of trading USD, and will be taxed for it.

On a personal note:
Lenders need to be protected, if not for scammers out there this thread and collateral would not be needed. lenders "especially" of altcoins need protections, I am trying to work a deal out with someone right now and am very confused as to how this can benefit the bothof us withut me getting screwed in the end, escrows are nice but in the end I have look out for me, I have more at stake than he does , (and just so i dont seem like an asshole, I am offering well over 120% collateral ion the loan I am looking for) that is why it is hard for me to decide what to do. (I guess my problem is I am using property as collateral and not another coin) But as mentioned above this industry is filled with scammers on both ends, the lending and recieving end, its sad but it is true. But I am borrowing to utilize the coins I am asking for in the crypto wordld, I am investing in the crypto world, and he is basing his judgements on the fiat world, and keeps referring to the USD value of the coins and not their crypto value.

[smooth]

Unfortunately, you said it yourself, altho most of your post relates to the comparison in cryptocoins and their value, the main problem in your post is one little word........."Otherwise I'm not lending money<-----------" what did you say you were not lending again? cryptocoins or "MONEY" the minute you as a lender connect the lending with money, if you are a united states citizen you have broken the law and can be jailed for violation of lending and trust laws, those are the facts, sorry to say.

Interesting theory. Quite ridiculous since I was explicit about the (hypothetical) loan being BTC, but let's play along.

that is how the USA is now able to tax certain trading organizations who deal with US dollars, as long as the trading site does not trade fiat they can do what they want but as soon as they add USD market to their program they are suseptable to the laws and regulations of trading USD, and will be taxed for it.

This is basically nonsense interpretation of the law, but let's say you are right. You are now contradicting yourself because above because I explicit was not lending or trading or doing anything else with USD.

Lenders need to be protected, if not for scammers out there this thread and collateral would not be needed. lenders "especially" of altcoins need protections, I am trying to work a deal out with someone right now and am very confused as to how this can benefit the bothof us withut me getting screwed in the end, escrows are nice but in the end I have look out for me, I have more at stake than he does , (and just so i dont seem like an asshole, I am offering well over 120% collateral ion the loan I am looking for) that is why it is hard for me to decide what to do. But as mentioned above this industry is filled with scammers on both ends, the lending and recieving end, its sad but it is true. But I am borrowing to utilize the coins I am asking for in the crypto wordld, I am investing in the crypto world, and he is basing his judgements on the fiat world, and keeps referring to the USD value of the coins and not their crypto value.

If it is a very long term loan this may be reasonable since your ability to pay the loan may be affected by large changes in the purchasing power of the crypto coin (I suspect that's what he means when he refers to the USD value -- he is using that as a proxy for purchasing power).

If you aren't comfortable with the lender you are working with, find another one.

[theonewhowaskazu]

wat

What if the person borrowing the coins is not using it for anything fiat, say like Im borrowing 10,000 dogecoins to trade them for other crypto, and increase my doge, or I am borrowing 50 litecoins to trade on a market, I am not using the coins for fiat purposes, but you are loaning them to me based on fiat values, how does that benefit the borrower? So now he is borrowing and using the coins only in the crypto world yet his rates are based on the fiat value, that makes the lender exactly like a fiat  centralized bank.

Then, if it isn't benefiting you, why are you taking the loan.

And, if you aren't taking the loan, why are you complaining?

Seriously this thread makes no sense.

I get the complaints when somebody asks for a loan and somebody downtrusts them simply because they asked. I don't get the complaints when somebody looks for offers for loans, and finds some deals he/she personally isn't willing to accept.

Both sides are acting like brats tbh.

If you don't like a lenders terms, DON'T BORROW FROM HIM.
If you don't like a borrowers terms, DON'T LEND TO HIM.

In neither case, does this say something about the honesty of the person in question.

[cyberpinoy]

If someone borrows BTC from me and uses LTC as collateral, I couldn't care less about the dollar value of either. But I sure as hell want the collateral (LTC) to always equal or exceed the amount owed (BTC). Therefore I am interested in the volatility of LTC/BTC value, and I will always require extra collateral to cover that risk. Otherwise I'm not lending money to some anonymous person on the internet (who might be a hacked account, bought account, scammer, etc.). It is just not going to happen.

Ok so lets go over this so far, you say you want protection and 120% collateral to protect in case the coin declines in value right? OK, what happens if today i borrow 10 litecoins from you with a promise topay them back in  30 days and in 29 days bitcoin drops 100 dollars in price and litecoin doubles, what protection does your borrower have against that,? Lending is a two way street is it not so if you are protected as a lender with 120% collateral how is your borrower protected if the value exponentially increases?

Just curious

As far as my take on the laws,TRUST and BELIEVE bro if anyone is doing any kind of lending of any kind of value represented in absolutely any way with the USD, the tax man wants his share, the law man wants his share (licensing offices) and theyb dont care about your or my take on the law, they will find a reason to slap you with fines and court fees. If you base any lending at all on the united states dollar in any way shape or form, you may as well open your own payday loan office and pay for the licenses, because if they find out and want to be pricks about it, they will

USA is already taxing and implementing trading laws on the exchanges that trade the USD market against cryptocurrency, what makes you think they wont impose the same lending laws against a party using fiat values to lend his coins out, AND they are taxing bitcoin income as well in a lot of states already.

If you don't like a lenders terms, DON'T BORROW FROM HIM.
If you don't like a borrowers terms, DON'T LEND TO HIM.

This is a great idea,one I use actually.

[smooth]

If someone borrows BTC from me and uses LTC as collateral, I couldn't care less about the dollar value of either. But I sure as hell want the collateral (LTC) to always equal or exceed the amount owed (BTC). Therefore I am interested in the volatility of LTC/BTC value, and I will always require extra collateral to cover that risk. Otherwise I'm not lending money to some anonymous person on the internet (who might be a hacked account, bought account, scammer, etc.). It is just not going to happen.

Ok so lets go over this so far, you say you want protection and 120% collateral to protect in case the coin declines in value right? OK, what happens if today i borrow 10 litecoins from you with a promise topay them back in  30 days and in 29 days bitcoin drops 100 dollars in price and litecoin doubles, what protection does your borrower have against that,? Lending is a two way street is it not so if you are protected as a lender with 120% collateral how is your borrower protected if the value exponentially increases?

I have done deals like this where if the collateral goes up significantly in value relative to the loan I send some of the collateral back. This BTW has nothing to do with USD value. In your example it would be LTC/BTC value that matters.

[ranochigo]

If someone borrows BTC from me and uses LTC as collateral, I couldn't care less about the dollar value of either. But I sure as hell want the collateral (LTC) to always equal or exceed the amount owed (BTC). Therefore I am interested in the volatility of LTC/BTC value, and I will always require extra collateral to cover that risk. Otherwise I'm not lending money to some anonymous person on the internet (who might be a hacked account, bought account, scammer, etc.). It is just not going to happen.

Ok so lets go over this so far, you say you want protection and 120% collateral to protect in case the coin declines in value right? OK, what happens if today i borrow 10 litecoins from you with a promise topay them back in  30 days and in 29 days bitcoin drops 100 dollars in price and litecoin doubles, what protection does your borrower have against that,? Lending is a two way street is it not so if you are protected as a lender with 120% collateral how is your borrower protected if the value exponentially increases?

Just curious

As far as my take on the laws,TRUST and BELIEVE bro if anyone is doing any kind of lending of any kind of value represented in absolutely any way with the USD, the tax man wants his share, the law man wants his share (licensing offices) and theyb dont care about your or my take on the law, they will find a reason to slap you with fines and court fees. If you base any lending at all on the united states dollar in any way shape or form, you may as well open your own payday loan office and pay for the licenses, because if they find out and want to be pricks about it, they will

USA is already taxing and implementing trading laws on the exchanges that trade the USD market against cryptocurrency, what makes you think they wont impose the same lending laws against a party using fiat values to lend his coins out, AND they are taxing bitcoin income as well in a lot of states already.

If you don't like a lenders terms, DON'T BORROW FROM HIM.
If you don't like a borrowers terms, DON'T LEND TO HIM.

This is a great idea,one I use actually.

The lender should be one who is trusted enough to hold your collateral. That is unlikely to happen since if Bitcoin value drops, the alt coin's value should also drop. If you dont trust the lender enough, then use a escrow. Most of them won't risk their reputation to scam in a loan collateral.