Quote from: Obim34 on Today at 04:00:47 PM

Quote from: di4biz on Today at 11:41:51 AM

Once again, one more “newbie” question, until you realize an account does not define the person behind it. Grin

So, is BTC really the ideal tool to replace banks in typical loans and mortgages, or is it only designed for big players and small-scale charity "loans" like we usually see in this forum?

IDEAL is a large word because not many will support the idea. Before you get Bitcoin to replace fiat, you need to remove/pass through government. I can cope with short term loans on Bitcoin, but for long term loans, i bet the price will never remain stable as of the time collected.

Practical example:

Loan as of 01/09/2025 to be paid in four years

0.001 BTC ~ 108 USD

Loan after four years, Bitcoin price hiked during this period(let's say X2) ie excluding interest for the four years interval

0.001 BTC ~ 216 as per (In this case the debtor is repaying high)

But if Bitcoin dips

0.001 BTC ~ somewhere around 87 USD (In this case the lender is at loss)

IMO, Bitcoin isn't fair/ideal for long term loans.

You don't take a loan in a value appreciating asset, that is part of the basics. You should not even take a loan in currency that is foreign to you. You take Bitcoin-backed loans in USD, if your local currency is not available. It already works great for those who can get a good deal.

Quote from: bitzizzix on Today at 04:06:13 PM

Bitcoin is also unsuitable for lending due to its highly volatile nature, which can potentially complicate borrowing, especially when the price rises, as loan repayments are based on the value of Bitcoin.

No, they don't have to be.

To get a loan, you need collateral. To use USD collateral to get a Bitcoin loan would be completely stupid, just buy it on the market with the USD. No loan needed, no interest, no issues. If you have BTC collateral, you take out a USD loan and none of the issues that users are describing present.