The reason why it can't happen now, is today I loan a bitcoin, tomorrow that bitcoin could be half its value, or double its value... its just too high-risk, and thus there is a pretty big chance of losing money.
All good reasons, but how would you explain that I've been lending bitcoins out for the last year? Use bitfinex, easy, varying return percentages. And the best part is - you lend 1 bitcoin, you always get back 1 bitcoin plus interest, and it's value is... exactly 1 bitcoin! Never half or double of that.
ok ,why would i lend my bitcoin to a an untrusted third party to hold it for a year or two
and then take it back with interest and i get back "exactly 1 bitcoin ! Never half or double of that."
why not just keep it myself and eliminate the third party risk ?
Who would want to put in for 1-2 years, im talking about months..