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Bitcoin has built in limit to lending: you can't, in the classic way it's been done. Whoever has control of coins, has complete control. If I give you any bitco
by imrehg 11y ago
Bitcoin has built in limit to lending: you can't, in the classic way it's been done. Whoever has control of coins, has complete control. If I give you any bitcoin in a way that you can spend it, then I don't have a mechanism to get it back without your consent. So no "lent" bitcoin really exists within the system.
- beeboop 11y agoI think the point that needs to be made is that there is very little incentive for a bitcoin owner to store their bitcoins with a bank. People store cash because it's susceptible to being stolen and inconvenient to spend versus a debit card. Banks have complete control of our cash and we can only get it back on their terms, but that doesn't deter most anyone from lending it to them.
- sampo 11y ago> there is very little incentive for a bitcoin owner to store their bitcoins with a bank Well, a bank could offer to pay interest on the deposits.
- rlpb 11y agoBitcoins are susceptible to being stolen (by rubber hose cryptography if necessary) and when stored safely are inconvenient to spend versus a debit card.
- johntb86 11y agoYou might as well say the same thing with physical cash. What makes the loan possible are the contract and the set of laws surrounding that contract. I don't see how bitcoin changes that part.
- nabla9 11y agoNot if everyone uses blockchain directly, but that is already too slow for quick transactions anyway. Banks would add bitcoins as just another currency into their system. They can start giving out credit cards denominated in bitcoin for anyone who saves bitcoins in bank for interest, that effectively creates new money.