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10 sats \ 2 replies \ @Jer 21h \ parent \ on: The Future Of Bitcoin Lending? bitcoin
This example doesn't really work though. The car is the collateral. No Bitcoin or additional collateral is generally required for a car loan.
If Alice stops making the fiat payments, the lender sues Alice, repos the car, sells the car, and pursues Alice for the difference in costs between the sale price of the car and the total amoratized loan, plus court costs.
I think the Bitcoin loan game is going to focus on larger purchases like real estate and things like reverse Bitcoin mortgages so Bitcoiners can retire with cash flow.
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Yeah I think the Bitcoin loan thing will be fiat loans against Bitcoin.
The one area that has not been explored yet to the best of my knowledge is Fiat loans for the express purpose of buying Bitcoin. Amortized over a long term like a mortgage. A 2-3 multisig is PERFECT for this. The borrower defaults on the payment and the lender and the third key holder just take the payment out in sats. You don't have to sell a house or tie up the courts.
Many people would borrow $100K USD right now to get in at a whole coin, if they can pay back a 5% loan over 10 years or whatever.
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