Quote from: DannyElfman on July 03, 2014, 04:42:28 AM

Quote from: transient858 on July 02, 2014, 06:14:46 AM

Quote from: DannyElfman on July 02, 2014, 05:29:36 AM

Quote from: Beliathon on July 02, 2014, 04:50:02 AM

Quote from: DannyElfman on July 02, 2014, 04:31:21 AM

Quote from: Ron~Popeil on July 02, 2014, 03:52:20 AM

Quote from: pening on July 01, 2014, 11:14:37 PM

Quote from: Ron~Popeil on July 01, 2014, 10:59:16 PM

The traders pay interest on the loans out of their exchange wallet. It is a way to leverage your balance to get a larger return. Any borrowing in any currency requires repayment of a certain percentage over what you borrowed. Have you ever bought a home? A car? Same thing.

I'm well aware of how trading accounts work, and loans in general. Thats why i find i it odd anyone thinks this is a killer app for Bitcoin.

I think they are referring to the ability to stockpile coins and have them actually grow the way fiat used to before the monetary system was destroyed. It creates more demand because holding them is even more profitable.

It should be noted that this would not be without risk. In the event of a market crash/spike then the exchange may not be able to liquidate traders' positions at a rate that would allow them to fully repay their margin loans. The lender would have to take a loss if this were to happen.

QFT.

Increased reward is almost always associated with increased level of risk. Remember that. And don't get too greedy.

This is not 100% true in terms of lending to margin traders as any loan could potentially end up turning bad regardless of the interest rate in relation to the market rate

Has been addressed here:
https://bitcointalk.org/index.php?topic=667105.msg7533611#msg7533611

I would not say this has been "addressed" as in a solution has been found/implemented but rather has been discussed.

Right now I wouldn't care about getting interest, just making sure the coins would be safe. 5 years from now, I'd probably want an account giving interest like a bank.