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Old January 8th, 2020, 01:06 AM   #1
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If the economy was based on bitcoin, how would someone go about getting a loan?

In today's society, people often take out loans from banks. In an economy that was run on will will bitcoin futures affect price, how would someone go about getting a loan? I do not understand how this would work with Bitcoin's deflationary model. It seems a loan would be creating a short on bitcoins which could be very harmful with the value of bitcoins increasing.
It is just a random thought.. Suggestions appreciated

Thankyou!!

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Old January 8th, 2020, 10:20 AM   #2
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We would be moving away from fractional reserve banking to full reserve banking.
For bank to act as intermediaries between depositors and borrowers, some bitcoin amounts would have to be locked-in a form of time deposit account from which this pool of bitcoins would be lent out. The borrower would have to repay the loan with more units of bitcoins to compensate both the bank and the depositors... In my humble reasoning.
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Old January 8th, 2020, 10:52 AM   #3
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Old January 18th, 2020, 05:15 PM   #4
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Quote:
Originally Posted by spencerarcher View Post
In today's society, people often take out loans from banks. In an economy that was run on will will bitcoin futures affect price, how would someone go about getting a loan? I do not understand how this would work with Bitcoin's deflationary model. It seems a loan would be creating a short on bitcoins which could be very harmful with the value of bitcoins increasing.
It is just a random thought.. Suggestions appreciated

Thankyou!!
To add to this hypothetical silliness, it would go bankrupt rather quickly. First market fluctuation and defaults would hit hard. Say you borrow 500 in bitcoin, at a rate of 100 US per coin. Coin devalues to say 50 bucks a coin again and poof. That and to add to it that it all exists just because, pretty much makes it a non-sell to most.
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