Post
Topic
Board Bitcoin Discussion
Re: Cryptocurrency Exchange In Japan Is Offering Bitcoin Loan
by
bitart
on 13/07/2018, 07:09:27 UTC
...
This is kinda unfair.I wish the companies,who offer bitcoin loans to include something like a discount agreement attached to the loan contract.For example,if I borrow a 1 BTC loan and the bitcoin price increases by 50% I will payback 0.5 BTC+the loan interest rate.This will boost bitcoin adoption for sure.
Let's say you have some bitcoins (e.g. 2 bitcoins which equals about $12,000 nowdays) and you want to give out loans.
First, you give out 1 bitcoin for someone. You sign an agreement that he will pay back only 0.5 bitcoin if the price goes up 50%.
Let's say the price moved up 50%. If you hadn't given out the loan, you would have got 2 bitcoins (worths e.g. $18,000)
Becasue you signed that the borrower needs only to pay back 0.5 bitcoin, in the end you'll end up with 1.5 bitcoin (worths $13,500 plus a little interest).
It doesn't seem a great deal for me to give out a loan with these kind of conditions...