Hot answers tagged

3

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 ...


3

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.


3

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 ...


1

It seems as if, to borrow 1000 USDT or whatever, I have to first register an account (e-mail address on centralized website required in spite of claims of "true P2P trading") Trading is P2P as HodlHodl is just providing a platform, making profits from fees and resolving disputes. You need to register with email address right now, maybe it can be ...


1

I want to do this. I need to do this. How exactly? Where? Who? Do they require KYC/AML BS? (Besides them knowing my bank account/name.) Although I am not sure which service was Tyler WinkleVoss referring to. You can borrow stablecoins, L-BTC etc. on HodlHodl with bitcoin as collateral locked in multisig. No KYC is involved in the process. Contract is ...


1

Bitcoins are a non-productive asset. Lending services earn revenue, because they lend out the coins they borrowed from you to someone else. They connect lenders and borrowers, take most of the risk and a cut. There is some risk involved, which is why there is revenue to be earned in the first place. Without you handing the coins into the service's custody as ...


1

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 ...


1

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.


1

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, ...


Only top voted, non community-wiki answers of a minimum length are eligible