And where does the value for the LOAN come from? Cmon dude, do some critical thinking, maybe fill up your basic economics gaps. There's nothing that FIAT has going for it, and bitcoin doesn't - except for a number of ways to take power away from the working people and putting it in the hands of central planners.
From loan contracts, collaterals and bank capital.
fxsurfer.. you lack the basic knowledge of FIAT that has had the same rules probably longer then you have been alive.. so you have had plenty of time to research fiat..
LOANS are not created from bank capital or collateral. they are just entries into a bank database.
do your research.. im laughing that you think banks are using capital to make loans..
When a bank grants a loan, the loan contract is shown both, as an increase in banks assets because the bank now has an additional claim on borrowers, and as a positive entry on the liability side of the banks balance sheet, because fiat money owners now have an additional claim on the bank. Given the fact that a claim is property in the fullest sense of that term, that it has its own value, and it may be sold, transferred, mortgaged, and inherited, it follows that dollars, euros or pounds are actual things with intrinsic value.
What that means in practice is that borrowers have two options: either they will sell their services and valuable things to fiat money owners directly on the marketplace to get money for their loan payments, or the bank will take possession of their land, cars, homes and will sell their valuable things to the owners of fiat money indirectly, via foreclosure. So one way or another, legal enforceability of fiat money, i.e. its claim status, ensures that its owners will come back into the possession of valuable things similar to those they handed out to borrowers or other people in the money circulation chain.
And thats the beauty of fiat money. Since it comes from debt, and debt is a legally enforceable liability that must be settled, the demand for dollars, euros or pounds will exist as long as this type of money exists. In other words, even if people completely abandon fiat money as means of exchange, the borrowers are still forced to use it until all their debt is paid off, since non-acceptance of fiat money wont make borrowers obligations go away. That means that ultimately, fiat money will provide its owners with actual things in the form of goods, services or property of borrowers, just like the gold certificates provided their owners with actual gold. To put it another way, in the past, fiat money was backed by gold, today, it is backed by the assets of the banks and by land, cars, homes and other property of the borrowers.
So no, loans are not just entries into a bank database. Loans are both rights and obligations. Bitcoin on the other hand is just entry into a database, i.e. - NOTHING.