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.
You can be given loans through bitcoin
but they dont give you bitcoin, they give you fiat .how it works is that you will submit your coins as collateral, coins that are worth the amount you would like to collect as loan. You submit the coins and then collect fiat and after you pay back the money you borrowed, they will give you back your coins, and when paying the money you will also have to pay the interest that is on top. But what you cant do is give loans in cryptocurrency exactly, nah you cant do that. If you do it then what are you using as collateral? That doesnt work.