Ok, let's put it this way.. imagine that last May I wanted to buy 10 Trezor (I imagine you're familiar with it and I don't need to explain), their price was (??) 1 BTC each, therefore I needed 10 BTC which I didn't have. So I ask my friend Bob to lend me 10 BTC, with the agreement I will give him back 1BTC per month. Please note that when we did the agreement 1BTC=100USD (total debt 10BTC equivalent to 1000USD). Now, we are in December, I still owe my friend 4 BTC, but those 4 BTC equal almost 4000USD. Since I am buying those bitcoins each month when i receive my salary (if I had all the money at the beginning I wouldn't have ask my friend) my residual debt is now 4000USD, 4x my initial debt.
This is just in a short period, imagine this in 2 years time, with a longer time involved to pay back and a bigger amount involved. Solutions?
This is just in a short period, imagine this in 2 years time, with a longer time involved to pay back and a bigger amount involved. Solutions?
Don't take a loan. It's really not needed, even for businesses they can get investors instead. This is also only a problem in bitcoins massive growth period, once it slows down, it will be less punishing to borrow btc.
You can't get investors to invest into your working capital (funds needed to carry out day to day operations and pay for raw materials). That's why businesses take loans, i.e. to finance their working capital. It becomes profitable if the margin they procure is higher than the interest they pay...