Quote from: tgmarks on June 20, 2016, 04:42:42 PM

First, let me say I appreciate the reply. I have not had much of any feedback and I appreciate your time in giving me some understanding of the mentality and approach given here. I had thought a one year payback was pretty short, but I can see how that would be seen as otherwise here.

I am curious on what type of digital collateral you refer to though. What is one offers for digital collateral? Websites? Businesses? I can understand in being harder to collect on physical.

Thank you for your answers in this.

Yes I guess one year is short-term for a fiat loan on a bank. But here there are several loans of just a few days. So by comparison and because the value of BTC can change a lot in one year it's not the same here.

The rule for digital collateral is that the lender must be able to sell it easy, quickly and with little effort for more than the loan plus interests. So an estable alt-coin would work. Websites or businesses would be valid collateral only if they are worth much more than the loan so that the lender can sell it as bargain (and therefore quickly and effortless) for more than the loan.

Here you can read more about it: https://bitcointalk.org/index.php?topic=577765.msg6311902#msg6311902