Quote from: CajunTechie on March 31, 2011, 07:50:17 AM

Quote from: fetokun on March 31, 2011, 07:42:03 AM

For now I don't see a Bitcoin Credit Union as a possible thing even if it's totally non-anonymous.

If you lend me say 1k BTC and you live in US while I live in Romania...You can have my e-mail, my skype, my real address, my cc number but nothing would make me pay if I don't want to.

I've seen "reputable" people doing all sort of things to skip a simple restaurant bill, imagine what would be the choice of one of these guys if he had to choose between buying something real for his familly or paying a guy 2 continents alway who can be totally ignored with a few clicks of a mouse.

That's probably the main issue a BTC CU would face. But what about if we had more of an 'association' of credit unions. Maybe one in the EU, one in North America, one in South America, etc. Would that provide a legal way to mitigate the risks? If it were anonymous, I would think not unless there was some way to maintain anonymity while still providing SOME traceability, that could work, couldn't it?

Anthony

That's the main problem ALL lenders face.

I have been on both sides of that equation, in various capacities. In reality, I think everyone has their thresholds. Most people, most of the time, have every intention of paying, and even doing so on time. However, everyone has a threshold at which point they need to make a decision, pay the loan, or pay for something else. There is also a ceiling where its not a decision, and they just can't pay (at least, on time). Sometimes the threshold is above the ceiling.

Some people, have very low thresholds, others, have just have very low ceilings. As a lender, these people are pretty similar in their effects. Certainly, its much easier to feel sorry for people who get laid off, have deaths in the family, or other events that leave them unable to pay than say, someone who blows it partying and doesn't put the time and effort in to even find a job. However, the end result is the same whether they have a good song and dance or not.

Anyway here is my thought. A credit union is usually also a bank. So, registering an account, and keeping that account open, moving balances in and out, all that, adds up to a certain credibility in and of itself. What if, instead of just being a normal bank that's borrowing from peter to lend to Paul, what if you allowed depositors to be investors in the loans to spread the risk and profit.... and only lend to other customers who have been doing business there for at least say... 6 months to a year.

It only helps so much.... when a business dies, it dies, when income goes away, it goes away, and sometimes these are unpredictable to the person it happens to, never mind to his creditors. However, it does at least establish some history and credibility to weed out some scammers and some of those who are just too desperate to be making promises at repayment.