Quote from: o_e_l_e_o on June 14, 2019, 12:11:11 AM

Essentially, if you take out a new loan of say $100, the bank creates both a credit of $100 and a debit of $100 in your name. You are given $100 of new money and also given a $100 debt to repay. The bank's balance sheet doesn't change, and they don't move any money out their reserves to cover your loan. The $100 loan is brand new money created out of thin air.

But if that 100$ is money made out of thin air...the the debt is also made out of thin air, right? Grin

And let's say after the bank has created this free 100$ out of thin air, I decide with that 100$ to come back and pay my debt in full. What happens to the money?
The bank erases your debt, takes back the money and everything is just as before you asked for a loan.
So, paying back your debt is ...burning money made out of thin air?

Quote from: LeGaulois on June 13, 2019, 11:36:14 PM

For the average Joe, it's a bit more difficult. Yes, he can hire a lawyer and go to a justice court. How many time it will take? 3 Years or more to see a judge? A judge that will surely say he's not competent to give a judgment since he doesn't even know what you're talking when you say Bitcoin and the chance that Bitcoin itself has not really a legal status in the said country.

I don't say it's impossible but the average Joe it's not so easy as banks, not the same power. Since we claim 'Be your own bank', let's say I lend you 50BTC and you're supposed to repay 1BTC per month during + 4 years. The first year, you repay me regularly without incident, the second year you start to ask for a delay, the third year you're gone. Will I be able to seize the funds on your bank account as banks can do? No

Let's say now we use a smart contract. Not sure which, for exemple, if the total amount isn't repaid after 5 years, the house bought with the money changes its ownership to the lender. Will, it even be considered as a legal contract? you can't send your smart contract to the land registry and say now it's mine.

Neah, it's far easier and faster.
Two stores had an unpaid debt to our family business, it took us about 3 months to go through the paperwork and have their bank accounts frozen, the debt amount taken and reimbursed.

In my third job, I didn't get paid one month because of "problems" , when the payment day for the second month expired I went to the department that covers workers protection, signed a declaration, attached a bank statement proving I have not received any funds in the last two months and in 30 days I had all the documents I required to go go to a collection agency and ask for their funds / good/ property to be put on a distraint order.
Got my money in about two weeks.

As long as you have a legal contract certified by whatever needs to so to be valid in your country jurisdiction, lawyer, register, notary, you can act the moment the terms were breached.

But yeah, right now, you can stick your smart contract....in a usb port :PPP
You need a real thing.