The problem is loaning money - it can be only trough the banks, loan sharks, family/friends and investors. Banks of course guard themselves from loss trough collaterals and laws.
Oh, what a surprise...do you know how loans work on bitcointalk?
[EDU] The Rule of "No Collateral, No Loan" - IGNORE AT YOUR OWN RISK!Everyone is going to ask for a collateral, nobody is going to give you money for free without first securing a method of getting them back, be it banks or crypto lenders.
Right, I didn't even consider the volatility side but as for the Bitcoin lending industry, seeing how it's currently developed it won't really work.
Let me explain: Currently, if a person is looking to borrow money and try to use a lending platform such as Nex.io, Celsius, or any others he needs collateral. It's almost impossible for a company not yet launched to provide any, otherwise, there is no use to borrow money if the company already owns the funds. Better for the company to sell the collateral and start with it. But as I said companies rarely have collateral, they have perhaps 10% and a money machine idea.
I never understood the lending model on those platforms and I will never will
For example, on celsius, if you want to get 10k$ you have to deposit at minimum for the most unfavorable conditions 2.241805
BTC.
Why would you do that?