Re: When is it useful to borrow bitcoin?

It is never useful to borrow money or bitcoins as you have to give back more

There are very specific circumstances in which borrowing is useful and that is if you want to engage in a productive activity but you dont have the cash in hand, in this day and age people borrow money just for the Lulz, but in the past this was the only valid reason to borrow.

Well you are right with it, it is going to be useful to borrow if you are going to use it for your profitable activity. And you just need to make sure that you are going to make it real and get good some profits out of it. Because if you are not going to get good profit out of it then you are just going to work to pay your borrowed bitcoin with interest.

At bitcoin lending i doubt the profitable activity is a need, we do lend our bitcoins to get some interest, something i consider less risked then invest into some altcoin, has i made in the past and lost several coins. Soo lending is something that may bring you profit, as long you work with colateral, otherwise you may be donating bitcoins instead lending.

But the title itself says if you are going to be borrower not a lender, we all know that lending is a good source of income if you are going to enter that industry and just to make assurance that your borrower is going to pay we need to have something in return by means of collateral. But having a collateral is not literally means that you have assurance that you are going to earn because sometimes it is hard to sell that and it takes time.

So thats why you make sure that the collateral you collected is more valuable or most buyable ones so if the barrower defaults his loan well you can sell the collateral immediately with a huge income will coming unto you, and i think all lenders think that to surely have an strategy for thereselves so they will not be fooled by those scammers or loan defaulter and to have an assurance to earn with this scheme.

That is certainly true, all those who lend money will certainly be more careful in giving loans to those who are not yet known. But if they have a warranty or something to convince the borrower then they will certainly be happy to provide such loans. Because sometimes there are just scammers looking for opportunity

For me, if you are going to borrow money just make sure you are going to be trusted by the lender too and building up a good relationship to your lender is going to be useful for you. And once you have good record to your lender, what you can do is that borrow money from him again and again because you both trust each other.