I started to think about it. How a bank and folks could issue loans to people?
Currently, when you need to borrow money, your banker just edits your balance account and create money magically. You then pay back monthly.
Banks won't be able to do that with Bitcoin with its limited supply. You can't print bitcoins.
But now, between folks. Let's say I'm the banker and you're the customer looking to borrow money to buy a house. I can lend you the money but how to be sure you will pay me back with full interests? With banks, the solution is easy, the bank seizes the house and you can't do something. But the average Joe hasn't the same 'power' than a bank to collect a debt.
Well in theory, banks just play with people's deposits, one person's deposit is another person's loan. Btw, commercial banks cannot print money, only central banks/Federal reserves can.
When an average Joe wants to lend bitcoins, he can sure lend, but it all comes down to how he wants to lend his money, the terms he lays down etc etc
What people usually would tend to do is get the borrower's personal details, verify it and then lend money. Also all borrow requests aren't fulfilled by the bank, so an average Joe isn't obligated to accept all his requests.