Post
Topic
Board Development & Technical Discussion
Re: Block Chain Based BTC Hedging - something like a Put Option.
by
grue
on 15/06/2013, 02:25:26 UTC
What is the easiest simplest way to create a loan mechanism in Bitcoin?
it's impossible for the very reason you posted. There's no way to "force" others to pay you in case their loans go south. With systems like bitfinex or bitcoinica(defunct), it was possible to liquidate the debtor's assets in case losses were sustained. This is not possible with bitcoin. You still need to rely on the traditional system of risk assessment, collateral, and repossession.