If Bitcoin crashed to $100, would you have repaid zarzab 7.8
BTC ($780)? No. You might have said that you will, but in reality, it almost certainly would not have happened. Lenders "gamble" on the BTC value not going down, while borrowers "gamble" on the BTC value not going up.
Yes, I've said many times that i can't afford it. But let's get real here, the price going 10x - 20x is the major contributing factor. What would you do if a loan you expected to be repay for $780, gets to $5K -10k?? I could have got stuck just paying monthly interest in perpetuity it cost so much in fiat each month, without ever making a dent in the principal. That's just insane and unreasonable - get real people.
I would:
A) Not take a loan I would not be certain I can repay
B) Not continuously ask for extensions
C) Negotiate better terms as you see fit
ex: "I will borrow 0.65
BTC and repay 0.68
BTC, unless the price, determined by the current price on preev, is 20% higher or lower than the USD value of the BTC when this loan was taken, in which case the loan will become a fiat based loan with 5% interest applied"
ex: "I would like to borrow 650$ USD (currently 0.65
BTC) for 1 month at a 10% interest rate. The loan will be fiat denominated, and I will repay 715$ worth of BTC determined by the Bitfinex rate on the date of repayment"