A credit card loan is secured by nothing more then your reputation.
So if I don't pay my debt, they're not gonna go after my assets, they're not gonna seek any repayment, only my reputation will suffer? Interesting. Which country is that?
The money you borrow when you use a credit card is borrowed by the bank from it's bondholders and depositholders.
http://www.theguardian.com/commentisfree/2014/mar/18/truth-money-iou-bank-of-england-austerityIn other words, everything we know is not just wrong – it's backwards. When banks make loans, they create money. This is because money is really just an IOU. The role of the central bank is to preside over a legal order that effectively grants banks the exclusive right to create IOUs of a certain kind, ones that the government will recognise as legal tender by its willingness to accept them in payment of taxes. There's really no limit on how much banks could create, provided they can find someone willing to borrow it. They will never get caught short, for the simple reason that borrowers do not, generally speaking, take the cash and put it under their mattresses; ultimately, any money a bank loans out will just end up back in some bank again. So for the banking system as a whole, every loan just becomes another deposit. What's more, insofar as banks do need to acquire funds from the central bank, they can borrow as much as they like; all the latter really does is set the rate of interest, the cost of money, not its quantity. Since the beginning of the recession, the US and British central banks have reduced that cost to almost nothing. In fact, with "quantitative easing" they've been effectively pumping as much money as they can into the banks, without producing any inflationary effects.
When you use bitcoin you need to trust that the person selling you whatever goods/services is going to give you such goods/services after you provide payment. With credit cards you do not need to give any such trust (you can dispute the charge if you do not receive the goods).
Actually, you do. You wouldn't willingly submit your cc details on the fraudulent site. Also, in some cases, you have to TRUST that the bank will issue the chargeback:
Chargeback v Section 75
You may have already heard of Section 75 of the Consumer Credit Act, a legal consumer protection that requires credit card providers to refund customers for faulty goods and broken merchant promises.
Chargeback, however, comes into play when Section 75 doesn't apply -- if the goods cost less than the £100 threshold required for Section 75, for example. Plus, unlike Section 75, chargebacks apply to purchases on debit as well as credit cards. Some card networks, including Visa and MasterCard, cover prepaid cards under their chargeback schemes as well.
However, in contrast to Section 75 (which is secured by law),
chargebacks are a voluntary scheme adopted by the card networks. That means they don't create the automatic joint liability on the card company in the way that Section 75 does. The chargeback process is not as well-known by bank staff either, so if you have trouble progressing your claim it's worth asking to speak to a manager.
http://uk.creditcards.com/credit-card-news/chargeback-can-get-your-money-back-1367.php
