Beware, making use of the following could be dangerous, risky, or even illegal:
http://btcjam.com p2p loans
http://polimedia.us/mpex stock exchange and options contracts
https://coinbr.com an mpex broker (makes it easier to use mpex)
https://icbit.se futures, mostly
https://cryptostocks.com stock exchange
In Fiat Interest and Inflation cancel each other and promote borrowing and thats a healthy thing, but bitcoin economy a borrower has to fight against deflation and interest, if interest rate gets lower to zero then lenders will have no incentive in lending
At a basic level, the person providing the loan hopes to receive a small return (interest) for ...
Script is employed to encode the rules under which a Transaction Output may be spent. E.g. the most common Script requires just proof of control over an address. Thusly, scripts cannot determine circumstances beyond a single transaction.
As a consequence, it appears to be infeasible to set up an enforceable credit contract with interest, because the loan ...
What do you mean by "loans with interest"? If you mean guaranteeing being
payed back the principal plus some interest that is not possible since
that depends on the external world (i.e. it is offchain).
On the other hand, if you mean just creating repayment links for the agreed amounts it is just following the instructions of BIP21.
My co-founder and I just started a Bitbond.net where we connect borrowers and lenders and offer an online wallet. Our goal is to make banks obsolete by such a service.
You can borrow Bitcoins by issuing a Bitbond. Before that, we perfom a credit rating to assess the creditworthiness of the issuer. We also do an identity check so if a borrower is late on his ...
First of all I don't think it needs to be so binary (bitcoin or nothing). Fiat and lending will likely co-exist along with bitcoin.
Additionally, what if instead of creating a business based on debt, the business owner saved his money for a few years in the deflationary currency and thereby gains the needed funds and discipline to start a business? Debt ...
It's absolutely possible to loan money with Bitcoin. FairShareLoans is a subreddit where money is automatically loaned out in ~20$ increments.
Collecting on those loans, on the other hand, is more difficult. https://www.reddit.com/r/FairShareLoans/comments/35vc5s/the_current_loansheet/ They appear to have a non-repayment rate of about ten percent.
There is BTCJam, and I heard of at least one more company doing the same thing.
However, there is a HUGE problem with BTC lending - it is very fraud prone. I exchanged emails with their support and got this interesting factoid:
We have a repayment rate of 76.11%
That means about a quarter of their loans don't get repaid. BTCJam does not appear to pursue ...
None of the above really answers your question. To understand the answer, we have to first understand the main difference between a fiat currency like USD and Bitcoin which is fixed in amount, just like gold.
In fiat currencies like USD, the amount/quantity of money is unlimited, i.e. banks can create new money out of thin air. So when banks give loans, ...
Loans have intrest rates that "create additional value". Given the limited amount of bitcoins, couldn't we realistically run out of them?
No, you wouldn't run out of Bitcoins for the simple fact that they will always be traded. Your interest payments on your loan would come out of Bitcoin trading that you did to increase your Bitcoins, even if you only did ...
If bankers would, by giving out loans and the interests on them, transcend the actual number of bitcoins existing, what is the difference with the current banking system?
In most countries, there is also more money in circulation through banks and loans than there actually exists. And it was just so when the gold standard still existed.
That's just how ...
Given how quickly intrest on top of intrest grows, won't the bankers get to 21 million BTC quite quickly?
Sure, but is that really meaningful? Let's say that I loan you 1 BTC, with the terms that I get 10% interest per day. Before the year is out, you owe me more bitcoins that actually exist. The face value is the amount that the loan is supposed to be ...