So for example loans are extremely important for upward economic mobility, is anyone aware of financial institutions that currently offer loans in bitcoin? Is this something that will only
happen when bitcoin has large usage comparable to fiat in order to be stable enough for an institution to even consider giving a loan?
Why would anyone be giving a huge bitcoin loan? Financial institutions supposed to provide big ones, which if harder than giving small loans via different lending websites.
Traditional institution provide low interest rates and getting a small but steady income. They can't legally ask customers to pay them like 100% if interest rates.
In such conditions, they may give a 5% BTC loan and during the next year lose 50% on BTC rate.
Such risk is not acceptable for big banks and dangerous for the financial system.