Theoretically, is a Bitcoin Credit Card possible?

[caribbeanbitcoiner]

Would companies be crazy to allow one to borrow bitcoin and settle any outstanding balances at the end of the month?

[Elwar]

There are bitcoin debit cards already.

A bitcoin credit card would not be too much different than a fiat card. There are already companies out there that you can pay your credit card bill in bitcoins, so what would be the difference?

[pawel7777]

Of course it's possible.

As Elwar mentioned, there are already Bitcoin debit cards, and there are also bitcoin loans services (bitbond, btcjam etc). So it's just a matter of combining those two.

[ArticMine]

Would companies be crazy to allow one to borrow bitcoin and settle any outstanding balances at the end of the month?

No thanks. Shorting XBT is a prescription for bankruptcy. Just think someone who borrowed say 2000 USD on their XBT credit card for Christmas presents in 2011 and made net payments equal to the interest.

Edit: Why not go for broke and issue a credit card denominated in LTC, XMR or some other alt-coin in a protracted bear market. I mean what could possibly go wrong the bear market will never end right?

[franky1]

it will start in places like local credit unions where the local town population can get 'credit'/loan cards based in bitcoin, simply because its easier to get courts and debt collection agents involved locally and to prove human identity of the person wishing to get 'credit'.. to ensure people dont just abuse the service and leg it with the funds.

but an international based service where faking ID over the internet happens every day (yes it happens on BTCJAM), i do not feel that such a service will work.. not right now atleast

[allthingsluxury]

It most certainly is possible.

[caribbeanbitcoiner]

Of course it's possible.

As Elwar mentioned, there are already Bitcoin debit cards, and there are also bitcoin loans services (bitbond, btcjam etc). So it's just a matter of combining those two.

A debit card is understandable because you only spend what you have and nothing else. However, with a Bitcoin credit card how would collection agencies collect debts?

[enryk]

Would companies be crazy to allow one to borrow bitcoin and settle any outstanding balances at the end of the month?

Very much possible and already in existence.
I haven't used them personally, but check out of the cards called XAPO.

[pawel7777]

Of course it's possible.

As Elwar mentioned, there are already Bitcoin debit cards, and there are also bitcoin loans services (bitbond, btcjam etc). So it's just a matter of combining those two.

A debit card is understandable because you only spend what you have and nothing else. However, with a Bitcoin credit card how would collection agencies collect debts?

In the same way it's organised on bitcoin lending sites, such as bitbond? According to their website the debt collectors are engaged when necessary. Bitcoin may not be an 'official' currency, but you're still bound by the contract to regulate your debt.

[Lethn]

Credit has never been an alien phenomenon and it could certainly be done with Bitcoin however as we've seen with exchanges, people who blatantly abuse this kind of system and try to pretend they have more Bitcoin than they actually have etc. will be spotted easily in this kind of market.

I remember some sort of chinese exchange getting set up at one point awhile back and it had somehow gained several hundred in BTC trade volume in just a few days, of course, everyone knew that was a load of crap so they avoided it, you can expect that kind of thing to happen with credit cards.

Fractional reserve lending is very unconvincing when what people are lending out has a fixed supply, that's why all the bankers use paper now and abandoned precious metals.

[caribbeanbitcoiner]

Credit has never been an alien phenomenon and it could certainly be done with Bitcoin however as we've seen with exchanges, people who blatantly abuse this kind of system and try to pretend they have more Bitcoin than they actually have etc. will be spotted easily in this kind of market.

I remember some sort of chinese exchange getting set up at one point awhile back and it had somehow gained several hundred in BTC trade volume in just a few days, of course, everyone knew that was a load of crap so they avoided it, you can expect that kind of thing to happen with credit cards.

Fractional reserve lending is very unconvincing when what people are lending out has a fixed supply, that's why all the bankers use paper now and abandoned precious metals.

You made some good points, perhaps it's dangerous to offer credit within a fixed money supply based economy.

[jubalix]

As said above the issue who is going to wear the risk of shorting BTC.

...no one.

[fatguyyyyy]

theres already many bitcoin credit cards like xapo, bitplastic, etc

[UnlikelyStory]

Yes very possible. Convert btc to cash and credit to card, all-in-one.

[rz20]

theres already many bitcoin credit cards like xapo, bitplastic, etc

Some of them has very high feed and they are debit cards. You fill them with bitcoins and use the card.

I believe we will see some service offering credit cards working totally with bitcoin in 2015.

[caribbeanbitcoiner]

theres already many bitcoin credit cards like xapo, bitplastic, etc

  smh, those are debit cards not credit cards.

[botany]

Yes, it is possible.
It is only a matter of time before traditional banking products are extended to bitcoin as well.

[fenican]

Certainly possible BUT all the same rules would apply as with normal credit cards.

Any lender putting up serious coin will want to see credit score and proof of identity.

A risk is that the borrower is, likely, paid in fiat and, hence, his ability to repay the loan may diminish over time through no fault of his own. Someone who borrows 100 BTC, for example, might be able to make 2 BTC monthly payments today but if BTC rises to $10k per coin forget about it.

[promojo]

It would be possible.  The question remains:

1) Who will fund it?  
2) Hardcore unsecured/uninsured debt
3) People will default due to no regulation/free market.
4) There is too much risk on the company doing it.  There would need to be regulations in order for it to move forward.


Like.  Say I go on BTCJam and fuck over the people I am suppose to pay back?  What happens?   Nothing.


Right?

[Gianluca95]

Yes, but if I not wrong, some bitcoin credit card already exist. Anyway, I think that a credit card which have a public key that seems the "IBAN" and the private key in the magnetic band is a good idea to produce it